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Interesting Article about Dual Income Family Financial Issues

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Rover:
Why Middle Class Mothers and Fathers Are Going Broke
There were over 1.6 million bankruptcy filings last year, up 7.4 percent from the previous year. And according to a new book, more people will end up in bankruptcy this year than will suffer a heart attack, than will be diagnosed with cancer or graduate from college, and it’s not who you would think. Elizabeth Warren is a Harvard law professor and bankruptcy expert and discusses these findings in her new book “The Two-Income Trap: Why Middle-Class Mothers and Fathers Are Going Broke.” She discusses the book on “Today.” Read an excerpt here:
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http://www.msnbc.msn.com/id/3079221/

It's interesting to me to see how many people think a "good job" is "safe."  The problem seems to be relying on the 2 incomes for normal stuff.  A good read of "Who moved my cheese" and/or "Rich Dad, Poor Dad" could help a lot of people avoid these situtations.   :two:

Perry Mowbray:
Interesting.

This book will tell the story of how having children has become the dividing line between the solvent and the insolvent, and how today’s parents are working harder than ever and falling desperately behind even with two incomes. It is also the story of how this state of affairs is not some unavoidable feature of the modern economy, or, for that matter, the inevitable by-product of women’s entry into the workforce.
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I know for my wife and I that it was a definite choice that involved real sacrifice to remain a single income family (for so long: my wife now works, but all the kids are through school).

Here in Australia it is pretty well documented how the house prices "suddenly" increased when double incomes become more likely.

Thanks for the link.

JavaJones:
Is the unregulated market truly self-correcting? Oh dear, I've just opened a can of worms... and none of them look very appetizing. ;)

- Oshyan

app103:
I wonder...

If women hadn't entered the workforce in droves, what would be the average current rate of pay for most careers? My guess is it would be a lot higher than it is now.

I also think that parents take the wrong approach with saving for their children's education. I think it would be better to cut the amount they dump into college funds in half, and put it in a retirement fund for their kids instead...and the rest into their own retirement fund.

Try not to end up as a burden to your children in your old age and help them not to be one to their kids.

It was something I wrote about in my blog a bit back:

http://cranialsoup.blogspot.com/2006/04/damn-coffee-is-expensive.html

I, too, an part of a single income family...I chose to be a stay at home mom...and now am a stay at home wife. (unfortunately I married a very old fashioned guy who doesn't like the idea of his wife having any sort of career even when the kids are all grown)

I think being there when my daughter was growing up was a good thing for all of us, especially her,  and I don't regret that part of it at all.

Yes, it has been a struggle, and continues to be one, but I don't think my daughter would be as great of a person that she is today if she was raised by babysitters so I could work.

And raising kids on 1 income has a great effect on the family...teaches us all what is and isn't important. You don't need designer clothes and ipods to be happy.

And making due with what you have brings out the creative side in people. I am an expert at creating something from nothing and tend to think up rather inexpensive creative solutions to what would be a costly problem to someone else. I am one of the goddesses of creative frugality and have passed on my wisdom to my daughter. We have raised it to an art-form! :P

Edvard:
Wow, talk about a can of worms...
If women hadn't entered the workforce in droves, what would be the average current rate of pay for most careers? My guess is it would be a lot higher than it is now.

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I and my single-income-family friends have pondered the same question, but in hushed tones and out of sight of the N.O.W. spy cams. :)

I don't have the figures to back it up (so tag this as My Honest Opinion), but I bet you can partly blame WWII. As we all know, the circumstances of that war drove women into the work force and then the subsequent "baby boom" after the war ended probably made dual-income an attractive option especially since there were suddenly three things influencing economics, 1 - women trained in factory and service work, 2 - a whole army (literally) of more-or-less hard-working men many of whom returned with highly specialized military technology training and 3 - more mouths to feed. No way a "normal" job market could accomadate those simultaneously without a cultural shift.

BTW- My family went single-income about 3 years ago and we are actuallly doing better. Go figure. I think its because my wife is handling ALL the finances now, and I am a richer man for it.

P.S. On a side note, I just hit your website, app103 and i was #1337 on your web counter  ;D

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