11: Family Resources and Economics
- Page ID
- 308853
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)- 11.1: A Structural Functionalist Look at Family Resources
- This page describes the family's vital role in fulfilling economic, social, and emotional needs, particularly during transitions into adulthood. It highlights functionalist perspectives on the family's societal functions, such as regulation of relationships and socialization. The trend of young adults depending on parental support into their 20s is noted, along with the impact of educational disparities on income levels and poverty cycles, affecting children's future opportunities.
- 11.2: Poverty
- This page discusses the contemporary landscape of childhood in the U.S., noting that most children contribute minimally to family income amidst economic prosperity. However, as of 2008, 19% of children lived in poverty, with higher rates among children of color. The poverty definition focuses on food costs for welfare eligibility. In total, about 25% of children experience economic hardship, emphasizing significant racial and socioeconomic disparities affecting many families.
- 11.3: Health Care and Insurance
- This page discusses the state of health care coverage in the U.S. in 2007, noting that over 45 million Americans were uninsured, with racial and income disparities evident. Young adults and low-income individuals were most affected. The 2010 Health Care Reform aimed to make health care a right and improve access, while also addressing ongoing challenges in insuring children and the uninsured population, reflecting systemic issues within the U.S. health care system.
- 11.4: Income and Wealth
- This page discusses income disparities in the U.S. based on marital status and education. It reveals that dual-earner married households earn the most, while single females earn the least. Higher education levels lead to increased income, with Whites and Asians generally earning more than Blacks and Hispanics. The page illustrates economic stratification, highlighting that the top 10% hold a significant portion of wealth, while the rest of the population is divided into lower economic classes.
- 11.5: Home Ownership
- This page discusses the significant investment of buying a home in the U.S., highlighting strategies to minimize costs, such as large down payments and shorter loan terms. It addresses the risks of debt, especially from credit cards, and stresses the importance of budgeting. Additionally, it offers guidelines for responsible credit usage, recommending saving three months’ income and implementing a cooling-off period before making purchases.
- 11.6: Budgeting
- This page covers budgeting essentials, focusing on fixed vs. variable expenses and effective budgeting steps like tracking income and expenditures. It introduces the hedonistic treadmill concept, warning against materialism and impulsive spending. Additionally, it discusses responsible debt use and the importance of credit scores while providing financial strategies for family stability and security, including cautious spending, saving, and investment practices.
- 11.7: The Financial Plan
- This page emphasizes the significance of creating a comprehensive financial plan spanning 5 to 20 years, aligning short-term actions with long-term goals like homeownership and retirement. It highlights the importance of saving for emergencies, warns against entitlement behaviors that lead to overspending, and addresses the emotional factors influencing poor financial decisions. The page advises seeking professional guidance for improved financial management.
- 11.8: The Elderly
- This page highlights the rising financial mismanagement among the elderly, noting a significant increase in bankruptcies from 1991 to 2007, especially within the 75 to 84 age group. It attributes this trend to medical costs, high living standards, predatory lending, and inflation, while also pointing out the susceptibility of seniors to scams that promise quick financial gains but result in losses.
- 11.9: The Household
- This page explores the distinction between needs and wants in family budgeting, emphasizing the importance of communication and compromise between partners. It examines gender roles, noting that women often handle both economic and emotional tasks, while men focus primarily on economic responsibilities.