1. Lesson 9 - Family Resources and Economics Robert Wonser

2. 2  Who will/does control the money in your relationship?  Is this a source of contention?  #1 source of divorce

3. 3 2010 Census  15.1% US HH below poverty (HH = Households)  26.6% Hispanic HH  27.4% Black HH  39.1% of black kids  $22,300 family of 4

4. 4 Poverty and Near-Poverty  Who’s most likely to be in poverty?

5. 5 Gender Gap in Pay

6. 6 Gender Gap %  STEM jobs  ♀ 24%  ♂ 76%  All jobs  ♀ 48%  ♂ 52% Income STEM jobs – ♀ $31.11 – ♂ $36.34 All jobs – ♀ $19.26 – ♂ $24.47

7. 7 Male and Female Median Earnings, 1959–2008

8. 8 Who is the ‘Ideal Worker’?

9. 9 Educational Pay Gap by Gender, Median Lifetime Earnings

10. 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. 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. 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. 13 Trends in Housework since 1900

14. 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. 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. 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.

17. 17 17 Coping with Child Care and Housework (women still do most, 12 vs. 5 hours)  Superperson  Cognitive restructuring  Delegation  Planning  Shift work

18. 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

19. 19 19 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 SPENTSPENT

20. 20 20 Debt Middle income families most likely to be in debtMiddle income families most likely to be in debt Living beyond meansLiving beyond means Mortgage and consumer credit=97% of HH debtMortgage and consumer credit=97% of HH debt Money management criticalMoney management critical

21. 21 Budgeting  Encourages people to stop and think  Makes it easier to adjust irregular income  Helps when income and expenses change  Helps discover leaks in expenses  Encourages family members to reexamine their goals and values

22. 22 22 10 Basic Rules of Money Management 1.Plan 2.Set goals 3.Save 4.Know your situation 5.Develop a budget 6.Keep records 7.Wants and needs 8.Expenses shouldn't exceed income 9.Use credit wisely 10.Pay bills on time

23. 23 23 Does someone (you or another person) pay rent or a mortgage on the place where you live? 1.Yes 2.No 0 40

24. 24 24 If yes, what is the monthly rent or mortgage payment? 1.Less than 500 2.500-999 3.1000-1499 4.1500-1999 5.2000-2499 6.2500-2999 7.3000-3499 8.3500+ 0 40

25. 25 25 Rent in SCV  1 bedroom, 1 bath  $700-$2000  Median $1155

26. 26 26 Property taxes  National average =$196/mo

27. 27 27 What is your average cell phone bill? 0 40 1.10-39 2.40-69 3.70-99 4.100-129 5.130-159 6.160+

28. 28 28 If you have one, what is your car payment? 0 40 1.1-199 2.200-399 3.400-599 4.600-799 5.800+

29. 29 29 If you have any, what is your average monthly gasoline or transportation cost? 0 40 1.1-50 2.51-100 3.101-150 4.151-200 5.201+

30. 30 30 Average utilities  Electricity110  Gas 69  HOA fees 41  Phone/internet/TV120  Water 30  Trash 50  Total 420

31. 31 31 Food  National average of food for 1 person $200/mo  California WIC benefit $37/mo/person

32. 32 32 We’re not even considering insurance, retirement, gardener, DMV fees, tires and other car maintenance, entertainment, haircuts, etc., etc., etc.

33. 33 33 Extra Credit Homework This is posted online  Keep track of EVERY cent you spend for 1 week  Due in one week!  Refer to the budget categories on the handout  Put something in for every category, even 0  Don’t forget Starbucks and vending machines  Estimate 1 week’s worth of monthly/yearly expenses for yourself  rent/mortgage, utilities, cell phone, car expenses, etc.  Divide living expenses by the number living there.  electricity is usually $100/mo  5 people live at your house  $100/4 weeks/5=$5 per person per week