In the US today, there are a wide variety of families with different structures and financial status. From those below the poverty line, to those in the upper class, family dynamics plays an important part. Having two incomes versus one, children from ex-husband or wives, a same-sex significant other, etc. can affect the financial status of many families. These characteristics play a role in income, taxes, budgeting, investments, and saving. The providers of every family constantly deal with the difficult task of making financial decisions that will benefit themselves and their families both now and in the future. The structure of many modern families makes these decisions difficult. An article written by Paul Sullivan, "Modern Families and Modern Money Worries" explains four diverse modern family structures and how the typical financial struggles associated with them. He discusses single parent, blended, same-sex, and multi-generational families.
He starts with single parent families which include single or divorced parents, widows, abandoned spouses, and many others. Single parent families typically include one working parent and sole provider for a household. The hardships depend on the income, amount of children, and other demographics. These single parents suffer from the stress of both providing for and caring for their children. Additionally, they must decide whether to invest in life insurance if they die.
The next family he describes is the blended family which includes a couple with children from each other and other previous relationships. The main financial issues associated with this family dynamic includes the distribution of wealth between children. Many families may want their own children to receive more than their significant others. Additionally, the amount of children to raise increases expenses significantly, which leads to many budgeting obstacles.
Sullivan then describes the same-sex couples which dealth with issues regarding pension and social security benefits. Another issue associated with same-sex couples included realty and where to invest in property. There are also social issues that affect the financial status of same-sex couples. Sullivan brings up the idea that some gay children may lose inheritances depending on the acceptance of their parents.
The last demographic mentioned is multi-generational families which includes a family with different generations living in the same house. These families typically incur high expenses to support more residents. The budgeting and saving for these families can become complicated depending on the amount of working members. Multi-generational families also face complicated tax situations due to the amount of dependents and monetary transactions including healthcare and other expenses.
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