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Two Income Trap Article

Hogan
Posts: 409
 Joined: 2008-04-21
 Dad Points: 720

Here is an excerpt from the article and link

So we looked at the data for two-income families today earning an average income. What we found was that, while those families certainly make more money than a one-income family did a generation ago, by the time they pay for the basics -- an average home, a health insurance policy, a second car to get Mom to work, child care, and taxes -- that family actually has less money left over at the end of the month to show for it. We tend to assume with two incomes you're doubly secure. But if you count on every penny of both of those incomes, which most families today do, then you're in big trouble if either income goes away. And obviously, if you have two people in the workforce, you have double the chance that someone will get laid off, or double the chance that someone could get too sick to work. When that happens, two-income families really get into trouble, and that's how a lot of families quickly go bankrupt.

http://motherjones.com/politics/2004/11/two-income-trap


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Submitted by Hogan on Sat, 02/20/2010 - 1:20pm.

Hogan
Posts: 409
 Joined: 2008-04-21
 Dad Points: 720
Two Income Calculator

Forgot to add link to Two Income Myth Calculator

http://www.hughchou.org/calc/dappen.cgi

Hogan Hilling, Board Member At-Large, Daddyshome, Inc. - The National At-Home Dad Network www.daddyshome.org


Sat, 02/20/2010 - 1:32pm

philipandrew
philipandrew's picture
Posts: 121
 Joined: 2006-11-06
 Dad Points: 246
Interesting book

I read this book when it came out a number of years ago.  The authors don't necessarily promote a stay at home parent scenario unless you live in an area with affordable housing.  The problem facing one income families is that two income families have driven housing prices up around good schools by using both incomes to pay for housing.  This takes us one income (or plus part-time) out of the bidding war for a house in a good neighborhood.  I don't know how you guys can make it in cities and states with such high housing costs. 


Mon, 02/22/2010 - 7:03pm

daddyfever
Posts: 45
 Joined: 2010-02-16
 Dad Points: 105
It is about priorities

I mentioned in another post that, here in Norway, there is a certain social pressure to put your kids in daycare from the age of 10-12 months (maternity leave here is paid for by the government and can be shared equally between the parents for 10 months at 100% of your salary or 12 months at 80%).  You should hurry up and get back out there and be a contributing member of society...

There are also a lot of people who will simply say that they have "no choice" but to have both parents work.  Why do they have no choice?  Well, because they have big loans to pay off - house loans, car loans, student loans... These are also the people who have pushed housing prices through the roof here in Norway too.

Fortunately (or unfortunately, depending on your perspective), we didn't buy a house before having a baby and our car is a 1989 Camry.  So, we rent - fortunately you can rent an apartment, town house, or half of a duplex in nice areas... We have set aside money in a "house fund" and intend to buy at a later time when we feel we can handle a loan....

For now, we are happy to prioritise having a parent at home over a house and a BMW :-)


Tue, 02/23/2010 - 3:15am

OceanDweller
Posts: 37
 Joined: 2009-01-21
 Dad Points: 41
Wow Phillip I really like

Wow Phillip I really like the way you said that, the more I think about that the more true that seems.  Two income families really seem to navigate their ways to the better school districts I have noticed as well.  We are in an average school district right now but as soon as the kids are eligible for Kindergarden we will be moving to the best school district in the area, we are building... and I will be going back to work.  Renting will suck you wallet dry most places in the states...

 

Brad


Wed, 05/19/2010 - 4:51pm

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