Changes in Personal and Family Finances over the Generation (Essay Sample)

Name: Tutor: Course: Date: Changes in Personal and Family Finances over the Generation Statistics reveal that several Americans and persons in the developing world of the current generation are immersing themselves into more debt as they indulge in impulsive buying and lustily purchasing they would rather forgo. The ‘luxury fever’ that has caught many Americans especially spurred by the upper class has caused the middle class to reduce their savings and increase their arrears. This is evident as increasing number of the middle class are being rendered bankrupt. The culture of competitive spending among Americans has eroded the value of public goods such as social services, recreation, and culture. The social aspect of the American culture that has greatly attributed to this change is the enrollment of women in the workforce that was not the norm generations ago. This has raised the median income of families now that both parents are breadwinners. Data shows that, in 1976, a married woman was twice more likely to be a stay-at home –mom compared to today. Half a century later, the statistics have reversed with a contemporary woman twice likely to have a full time job than stay at home. Maternal leaves are also getting shorter at work. Women contribution in the labor force has boosted family incomes by 75% thus increasing the money for spending. On the contrary, the amount of savings families hoards up for the future has decreased. Families are also spending more money beyond their means turning from the tradition of savings to incurring of debt. Home foreclosures in America have tripled over two decades with one in every three American families earning about $35000 not capable of footing their credit bills on mere minimum basic salary. Designer clothing is the preferred clad by the middle class that is extremely expensive. Unlike in the past where the stay at home would cook for the family, currently with both parents at work, most families buy food which is expensive in the end. Increasing home fitting with luxurious appliances such as washing machines, home theaters, driers also increase spending. Nevertheless, according to statistics these are not the major causes of frittering away of family income since savings on in other aspects offset these spending compared to the past such as tobacco use. Most of these spending are blamed on social pressure of high expectations of financial success whereby most individuals are eager to prove fast achievement that is demonstrable by amassing material wealth such as big houses, vehicles, and such like tangible items. Such pressures have been blamed for the rising cases of depression and anxiety among Americans, which leads to substance abuse and eating disorders that delve up more health issues. One major attribute of debts in middle-income families has its provenance when buying a home. These families have a tendency of buying mortgages beyond their means in their endeavor to procure a beautiful home that satisfies their taste, putting into account the increasing housing costs. Homes with more bedrooms are most preferred today with an average of 6.1 rooms in the 1990s compared to 5.7 two decade ago. More and more rooms are being preferred thus increasing mortgages for middle-income earners beyond what their income can service. Owning a car with expensive inbuilt amenities and features is also driving family spending up the scale but not as drastically as owning a second car. Most families currently find it necessitating owning a second family car. A household with no older sibling or grandmother who would look after little children for free, are compelled to pay childcare whose costs have skyrocketed in a span of few years, for example, from between 2000 and 2003, a 19% increment. Government policies on healthcare have taken a toll on the family income of the middle class. More and more families are finding it elusive to secure them healthcare insurance. For the fortunate employees who have their employer’s chip in for their health insurance, their insurance costs have risen steadily over the years to over 90%. For persons whose employer’s offers little assistance finds it unaffordable is not insured altogether. Taxation by government has also increased, and transportation costs bearing on the middle income families with a net increment of 75% of basis income spent on basic expenses. With increasing debt, spouses in the families are obliged to work extra working hours or take two complimentary jobs so as to be able to foot the other needs such as school fees, insurance and retirement. There is no room or margin for error whereby one cannot afford to be injured, sick, or have liabilities that would see him or her loose working hours or worse off get laid off for this would spell doom for the family. Social wise, this extreme dedication and focus on work to make extra money, takes a strain on social life with little time for interaction between friend...