Source

CHICAGO, U.S.A., July 1, 2003: At the beginning of the last century, American families did not have one major decision to make when starting a family. Wives and future mothers were already at home, and the decision whether to continue working or not, was not there. However, in today’s families many young Americans marry but have children later, and by that time have gotten used to two paychecks. When the first child has been conceived, the all important question arises, “Who will take care of the child.” Elizabeth Warren, a professor at Harvard Law School says, “The single biggest economic shift in the American family over the last century, and even in the last thirty years, is that mothers continue to work. The two-paycheck family is more vulnerable because it has adjusted its expenses upward because of the second salary.” Financial Advisor Brian Ashe helps couples to look at their finances and develop a budget. Ashe explains, “They need to know how much income and expenses they have monthly so they understand where they can cut back if one stops working. Too many think the second income allows them to increase their lifestyle as opposed to savings.” Paul and Laura Koch, both 41 and parents of 4 children, made the adjustment from the two paycheck family to one income. Laura Koch says, “My company offered me a part-time management job. We decided it was more important to raise our family ourselves so we made a lifestyle change. I used to spend $15 on lunch, now it’s a sandwich from the refrigerator.” The Weiss family decided that Ellen would stay home until all the children were of school age. Ellen Weiss says, “My working takes pressure off my husband, and our life overall is better since we’re not strapped for cash. We could cover bills on one salary but savings, lessons and other extras would stop.” Still others have explored the option of the stay-at-home, parent-earning, income. Andy and Radha Sharma formed a company called Cozy Spaces Ltd. that offers affordable furniture from their native India. They have invested US$20,000 and are confident that this decision will allow them to make money while raising their own children at home.

Post Views: 205