Friday, October 29, 2010

MSN Money reports on relative wealth of parents v. the childless

Here’s an MSN Money article that caught my eye, “Can you afford NOT to have a kid?” by Gina Roberts-Grey of MSN Money, link here.

The article goes over the expenses of parenting, and then takes off the deductions and credits, which themselves are considerable. Still, the price tag for a kid is maybe like $160000.

Birth rates in some parts of the country dropped significantly between 2006 and 2008. In fact, her article starts by her saying that many parents have put off plans to procreate.

The Census Bureau, however, published data showing that fathers tend to earn more at all levels than non fathers, and mothers in the mid range earn more, although childless women are more likely to become top earners. Adults who become parents may earn more because they have to.

The article says that parents may be better at wealth accumulation than non-parents, again, because they have to behave more prudently; but that’s not always consistent. Many parents with sizable families were duped into the mid-decade subprime mortgage mess and are now in debt, underwater, and in financial trouble. And some relatively introverted people, while preoccupied with their own needs, may tend to behave more conservatively than many parents and stay out of financial trouble.

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