1

Lesson 9 - Family Resources and

Economics

Robert Wonser

2

Who will/does control the money in your relationship?

Is this a source of contention?

#1 source of divorce

3

2010 Census

15.1% US HH below poverty (HH = Households)26.6% Hispanic HH 27.4% Black HH39.1% of black kids

$22,300 family of 4

4

Poverty and Near-Poverty

Who’s most likely to be in poverty?

5

Gender Gap in Pay

6

Gender Gap

% % STEM jobsSTEM jobs

♀ 24% ♂ 76%

All jobs ♀ 48% ♂ 52%

IncomeSTEM jobs

– ♀ $31.11– ♂ $36.34

All jobs– ♀ $19.26– ♂ $24.47

7

Male and Female Median Earnings, 1959–2008

8

Who is the ‘Ideal Worker’?

9

Educational Pay Gap by Gender, Median Lifetime Earnings

10

Women and Work

•Balancing work and family-huge challenge for parents

•Work-family spillover (role conflict)•Mothers experience more

•Affects relationships and health

•Work affects power. Who gets paid the most?

11

Doing the Work of Family

Many types of work (both paid and unpaid) are necessary to keep a family operating.

These tasks can be either instrumental or expressive.

12

Doing the Work of Family

Women nowadays have two jobs: paid labor outside the home and unpaid labor inside the home.

Second shift (unpaid labor inside the home that is often expected of women after they get home from working at paid labor outside the home).

Many women juggle full-time jobs with caring for their children and running their home with little help from their spouses. According to Arlie Hochschild, what are the consequences of the supermom strategy?

13

Trends in Housework since 1900

14

Doing the Work of Family

Men and women have always performed different roles to ensure the survival of their families, but these roles were not considered unequal until after the Industrial Revolution.

Work started taking place outside of the home, for a paid wage.

As a result, the kind of work that became valuable was the kind that happened outside of the home.

This is when “housework” became unvalued, because it was not associated with a wage.

15

Unpaid Work Through the Life Cycle

Women do more housework than men even when comparing employed women to non-employed men.

In the household, men and women do different kinds of tasks. Women are more likely to do cooking, washing dishes, indoor cleanup, laundry, shopping, and childcare.

Men are more likely to do repairs and maintenance, gardening, and pet care.

16

Housework is Work

The unpaid work of women is estimated be worth about $138,095 a year for stay-at-home mothers and $85,876 annually for employed women.

Despite the obvious importance of this unpaid work, it is often invisible.

171717

Coping with Child Care and Housework (women still do most, 12 vs. 5 hours)

SuperpersonCognitive restructuringDelegationPlanningShift work

18

10 Strategies to Balance Work and Family

•Valuing family as priority•Partnership in marriage•Deriving meaning from work•Maintaining work boundaries•Focusing on producing at work•Prioritizing family fun•Take pride in dual earning•Living simply•Making decisions proactively•Valuing time spent together

191919

Minimum Wage

2008 = $8 in California

40 hours x $8 = $320/wk = $1,387/mo = $16,640/yr

Can you live on this?

Here’s some fun: Play SPENT

202020

Debt

•Middle income families most Middle income families most likely to be in debtlikely to be in debt•Living beyond meansLiving beyond means

•Mortgage and consumer Mortgage and consumer credit=97% of HH debtcredit=97% of HH debt

•Money management criticalMoney management critical

21

Budgeting

Encourages people to stop and thinkMakes it easier to adjust irregular incomeHelps when income and expenses changeHelps discover leaks in expensesEncourages family members to reexamine

their goals and values

222222

10 Basic Rules of Money Management

1.1. PlanPlan2.2. Set goalsSet goals3.3. SaveSave4.4. Know your situationKnow your situation5.5. Develop a budgetDevelop a budget6.6. Keep recordsKeep records7.7. Wants and needsWants and needs8.8. Expenses shouldn't exceed Expenses shouldn't exceed

incomeincome9.9. Use credit wiselyUse credit wisely10.10.Pay bills on timePay bills on time

232323

Does someone (you or another person) pay rent or a mortgage on the place

where you live?

Yes N

o

50%50%

1.1. YesYes

2.2. NoNo

0

40

242424

If yes, what is the monthly rent or mortgage If yes, what is the monthly rent or mortgage payment?payment?

Les

s th

an 5

00

500

-999

100

0-149

9

150

0-199

9

200

0-249

9

250

0-299

9

300

0-349

9

350

0+

12% 12% 12% 12%12%12%12%12%1.1. Less than 500Less than 5002.2. 500-999500-9993.3. 1000-14991000-14994.4. 1500-19991500-19995.5. 2000-24992000-24996.6. 2500-29992500-29997.7. 3000-34993000-34998.8. 3500+3500+

0

40

252525

Rent in SCV

1 bedroom, 1 bath1 bedroom, 1 bath$700-$2000$700-$2000

Median $1155Median $1155

262626

Property taxes

National average =$196/mo

272727

What is your average cell phone bill?What is your average cell phone bill?

10-

39

40-

69

70-

99

100

-129

130

-159

160

+

17% 17% 17%17%17%17%

0

40

1.1. 10-3910-39

2.2. 40-6940-69

3.3. 70-9970-99

4.4. 100-129100-129

5.5. 130-159130-159

6.6. 160+160+

282828

If you have one, what is your car payment?If you have one, what is your car payment?

0-1

99

200

-399

400

-599

600

-799

800

+

20% 20% 20%20%20%

0

40

1.1. 1-1991-199

2.2. 200-399200-399

3.3. 400-599400-599

4.4. 600-799600-799

5.5. 800+800+

292929

If you have any, what is your average If you have any, what is your average monthly gasoline or transportation cost?monthly gasoline or transportation cost?

0-1

9

20-

39

40-

59

60-

79

80-

99 1

00+

17% 17% 17%17%17%17%

0

40

1.1. 1-501-50

2.2. 51-10051-100

3.3. 101-150101-150

4.4. 151-200151-200

5.5. 201+201+

303030

Average utilities

ElectricityElectricity 110110GasGas 69 69HOA fees HOA fees 41 41Phone/internet/TVPhone/internet/TV 120120WaterWater 30 30TrashTrash 50 50TotalTotal 420420

313131

Food

National average of food for 1 person National average of food for 1 person $200/mo$200/mo

California WIC benefit $37/mo/person California WIC benefit $37/mo/person

323232

We’re not even considering insurance, retirement, gardener,

DMV fees, tires and other car maintenance, entertainment,

haircuts, etc., etc., etc.

333333

Extra Credit Homework

This is posted onlineThis is posted onlineKeep track of EVERY cent you spend for 1 weekKeep track of EVERY cent you spend for 1 weekDue in one week!Due in one week!Refer to the budget categories on the handoutRefer to the budget categories on the handout

Put something in for every category, even 0Put something in for every category, even 0Don’t forget Starbucks and vending machinesDon’t forget Starbucks and vending machinesEstimate 1 week’s worth of monthly/yearly expenses for Estimate 1 week’s worth of monthly/yearly expenses for

yourselfyourself rent/mortgage, utilities, cell phone, car expenses, etc.rent/mortgage, utilities, cell phone, car expenses, etc.

Divide living expenses by the number living there.Divide living expenses by the number living there. electricity is usually $100/moelectricity is usually $100/mo 5 people live at your house 5 people live at your house $100/4 weeks/5=$5 per person per week$100/4 weeks/5=$5 per person per week