Archives: Marriage and Money

WSJ blog: ‘No recovery for single moms’

05.14.2012 2:48 PM

by reporter Phil Izzo:

In 2010 for the first time, married mothers were more likely to be employed than single mothers. That trend became more pronounced in 2011. Last year, 63.4% of mothers living alone had a job, compared to 64.6% of married mothers. That was largely because single moms are having a much harder time finding employment. Their unemployment rate was 15% in 2011, compared to 6% for their married counterparts living with a spouse.

…Part of that reason for the disparity is demographic differences. Single mothers are more likely to be minorities or have lower levels of education than their married counterparts. Women with just a high school diploma had an 8.7% unemployment rate in 2011, compared to 4.3% for college graduates. Meanwhile, black women had an 11.9% jobless rate, while white women’s rate was 6.5%.


Mommy Wars: “The supposed enemy camps are often the same women”

05.14.2012 2:45 PM

by Kay Hymowitz in the New York Daily News:

Today’s “stay at home mom” becomes next year’s “working mother” and vice versa.  To put it a little differently, the mommy wars are over, but not because one  side won. It’s because women keep moving between the mythical enemy camps.


Interesting Suggestions for Improvements to Social Security

05.11.2012 3:44 PM

“The recommended changes are contained in a white paper, “Breaking the Social Security Glass Ceiling,” sponsored by the National Committee to Preserve Social Security & Medicare Foundation, the Institute for Women’s Policy Research, and the National Organization for Women Foundation.

Women continue to earn nearly 20 percent less money than men, the paper says. In addition, many women stay at home for parts of their careers to raise families, further reducing their lifetime earnings. As a result, they have smaller nest eggs when they retire and also have earned permanently smaller Social Security checks as well. Retired women outlive men by an average of 2.5 years, it adds, and their financial disadvantage worsens in widowhood.

“In 2009, the average annual Social Security income of a retired man was $15,620, while the average yearly income of a retired woman was $12,155,” the paper says. “In 2010, 46 percent of elderly unmarried women, and 58 percent of elderly unmarried women of color, relied on Social Security for 90 percent or more of their total income.”

“Even with Social Security,” it adds, “12 percent of older women still live in poverty; for widows, the rate is worse, at 15 percent. This is 50 percent higher than the poverty rate for all people 65 and older.” The problem is especially severe for women of color. Poverty rates in 2009 were more than 26 percent for African American women who were 75 and older, the paper says, and more than 21 percent for older Hispanic women….”

and

“Here are some of the changes the groups propose:

Survivor benefits. Increase the benefit paid to a surviving spouse to an amount that is equal to 75 percent of the total combined benefits that were paid to the couple prior to the spouse’s death, capped at the benefit level of a lifelong average earner (roughly $1,585 a month for an individual claiming benefits in 2012 at the age of 66).

Credits for caregivers. Credits would be provided for up to five years for a person caring for young children or family members who are elderly or disabled. The credit would be an imputed wage for caregiving work which, when added to any actual earnings, would total no more than half that year’s average annual wage. In 2011, half the annual wage equaled $21,758.

Disabled widows and widowers. This proposal would end benefit reductions, age restrictions, and eligibility time limits, and treat these beneficiaries the same as other people receiving Social Security disability payments.

Student benefits. Restore benefits to children up to the age of 22 instead of the current limit of 19. Such benefits were once permitted, but removed in 1981.

Same-sex married couples and partners. Remove gender from Social Security rules and provide equal benefits to all couples and their children, regardless of the sexes of the couple.” Read more…


Women, Divorce and Aging

05.07.2012 4:03 PM

…while the overall rate of divorce is declining, data show that a growing number of women will be divorced and poor when they reach retirement, according to research by the Social Security Administration.

Around 20 percent of them age 65 or older live in poverty, compared with 18 percent of never-married women and 15 percent of widowed women.


WSJ: ‘Student Loans Drive Grads to Delay Marriage, Children’

04.23.2012 5:04 PM

Between the ages of 18 and 22, Jodi Romine took out $74,000 in student loans to help finance her business-management degree at Kent State University in Ohio. What seemed like a good investment will delay her career, her marriage and decision to have children. more


From Britain: How do you determine a household’s income when so many parents aren’t married?

04.17.2012 4:48 PM

An article from the Telegraph about a fracus over determining who gets the Child Benefit entitlement when nobody can reliably tell who is a couple and who is not. (Are they married? In a civil partnership? If they are among the vast and increasing numbers sporadically ”living together as married,” how does the tax man determine that?)

Benefits staff are told in guidance to consider “duration and stability of the   relationship”, “financial arrangements”, “sexual relations (although a   person should not be asked about this)”, “the degree of interdependence and   devotion” and “how other people see the relationship”.

However they do not use a “score card” or a single factor to decide if two people are in a relationship akin to marriage or civil partnership.

Meanwhile critics charge these questions are “intrusive.”


Dementia and divorce

04.16.2012 6:20 PM

Recently my 80 year old father who had been diagnosed with mild dementia has become fixated on his finances. So much so that he is convinced that my mother has been stealing his money for years (which is not true and we have presented attorneys, case workers, psychiatrists, etc. to explain to him otherwise but he is convinced of this.) And it has now culminated into his request for a divorce. My mother who is his primary caregiver is fed up and doesn’t want to argue with him anymore and is granting his request. I understand that this is quite common…


One retiree on gambling, social security, and divorce

03.23.2012 2:13 PM

I admit I know absolutely nothing about Las Vegas except it’s out west, rising from the desert like a city on the plain. I hear it gets pretty hot, and all my friends who went there came back either broke or in love and had to borrow from their 401(k)s to pay their mortgage or their divorce attorney. A lot of Social Security checks get frittered away on slot machines and lap dancing, but that’s another story.

And while you’re at it, check out our sister blog, Get Government Out of Gambling.


Yours, Mine, but Never Ours

02.26.2012 10:46 PM

A magistrate left to split the Australian pair’s assets said their “unusual” and “pernickety” relationship had existed only for weekly social outings and luxury holidays.

The pair, both in their 70s, married in 1991 but never moved in together – only spending weekends together at the wife’s home.

The Federal Magistrates’ Court heard they kept their finances separate and invoiced each other for amounts as trifling as 50 cents.

In college I babysat for a married couple who had a slate on their refridgerator door where they kept a running total of the small dollar amounts each “owed” the other. For reasons I could not articulate at the time, I was appalled.


‘Do we no longer need marriage?’

02.22.2012 10:23 AM

Asks Brad Wilcox at CNN:

…the problem with the retreat from marriage in poor and working-class communities is that fewer children, not to mention adults (especially men), benefit from the meaning, direction and stability afforded by an intact, family life. Conversely, American adults and children hailing from more educated communities and affluence are more likely to be doubly blessed with high levels of income and education as well as strong and stable families.

There are at least two ways to bridge the growing marriage divide. First, liberals correctly note that one reason marriage is disappearing is that men in poor and working-class communities are having greater difficulty finding stable, decent-paying jobs — particularly as manufacturing jobs head overseas. Our government should aim to strengthen vocational education and job programs in these communities.

Conservatives are also correct to point out that the cultural foundations of marriage have weakened in poor and working-class communities. For instance, since the 1970s, less-educated Americans have become more accommodating of divorce, whereas college-educated Americans have become more intolerant of divorce and are in fact, more likely to embrace what I call a marriage mind-set. more


Middle Class Marriage

02.19.2012 11:37 PM

The drudgery, the beauty:

She and Jeffrey had fallen into silence, the long flight from California behind them, in which they had already conducted the conversation of a busy couple in forced companionship, reviewing the household matters they had had no time for, and managing, in the interest of the long journey still ahead of them, to avoid recriminations and criticism on a variety of touchy subjects—things undone, details of child rearing, delayed decisions about the plumbing. Chloe did not say, though she had often thought, that if only Jeffrey would take the children out on some sort of expedition on Saturday afternoons, she could use the time to do some of the things that needed doing around the house. Jeffrey did not say, as he so often did, that if she were more punctilious about certain housekeeping things then the atmosphere would be generally more harmonious and he’d feel like doing more around the house. Maybe they should go ahead with a new sprinkler system, though in principle Chloe, home in the mornings, could take care of the sprinkling. Sara would finish the school year at her present, even though not wonderful, school. A few other things settled, a few deferred again. Second thoughts—maybe instead of the sprinkler system, the priority thing was the roof.

–Diane Johnson, Persian Nights, pp. 11-12


‘When a Divorce Pays Off’

02.07.2012 3:11 PM

A recent WSJ article on a wrinkle the reporter argues many people don’t know about: that if are over age 62, unmarried, and your former marriage lasted at least ten years — even if the marriage occurred years ago — you may be eligible for a bigger Social Security benefit based on your former spouse’s earnings.


Is marriage for rich people?

02.06.2012 1:12 PM

The NYT Economix blog:

A new report, by Michael Greenstone and Adam Looney of the Hamilton Project, looked at the decline in marriage rates over the last 50 years and found a strong connection to income. Dwindling marriage rates are concentrated among the poor — the very people whose living standards would be most improved by having a second household income.

The trend is especially pronounced among men…


‘Help America, Get Divorced’?

02.02.2012 10:37 PM

Matthew Yglesias’ piece in Slate, “Help America: Get Divorced! The coming boom in failed marriages and why it’s exactly what the economy needs,” is a perfect example of the short term thinking that creates far more messes than it resolves:

There are millions of “missing” households in America that can appear—through childbirth, divorce, or moving out—very suddenly if people get a bit more in their pockets. And each new household carries with it not just a home, but a wide array of appliances, furniture, and other durable goods. An income boost, in other words, could create a wave of household formation that drives nationwide incomes even higher.

Sure, America, get divorced and go shopping.  A divorced household means two refridgerators rather than one, and what could be better for the economy? Except that non-married adults don’t accumulate as much savings and assets over time, are less likely to own their home, have children who are more likely to struggle, and have fewer family caregiving arrangements to fall back on when health or finances get tough. Short term gain, long term pain. Perhaps there is another way.


Ruth Marcus at WaPo: ‘The marriage gap presents a real cost’

12.29.2011 12:37 PM

If current trends hold, within a few years, less than half the U.S. adult population will be married. This precipitous decline isn’t just a social problem. It’s also an economic problem. Specifically, it’s an income-inequality and economic-mobility problem. The steadily dropping marriage rate both contributes to income inequality and further entrenches it.

and

“Family structure is a new dividing line in American society,” Isabel Sawhill of the Brookings Institution told me. As marriage increasingly becomes a phenomenon of the better-off and better-educated, the incomes of two-earner married couples diverge more and more from those of struggling single adults. There is a chicken-and-egg conundrum at work here: Did lack of financial stability contribute to the decision not to marry, or did the decision not to marry contribute to financial instability? Either way, the phenomenon is self-reinforcing. Of even more concern is the generational impact of this increased inequality. Being raised in a stable, two-parent household is a strong determinant of educational achievement. In turn, educational achievement is a strong — and growing stronger — determinant of lifetime income. As a result, the marriage gap becomes a grimly self-perpetuating process. more

And see State of Our Unions 2010, “When Marriage Disappears,” to learn more.


David Brooks on debt, divorce then and now

12.29.2011 12:13 PM

…The progressive era still had a Victorian culture, with its rectitude and restrictions. Back then, there was a moral horror at the thought of debt. No matter how bad the economic problems became, progressive-era politicians did not impose huge debt burdens on their children. That ethos is clearly gone.

In the progressive era, there was an understanding that men who impregnated women should marry them. It didn’t always work in practice, but that was the strong social norm. Today, that norm has dissolved. Forty percent of American children are born out of wedlock. This sentences the U.S. to another generation of widening inequality and slower human capital development…


Douthat: ‘The Cratchit Tax Credit’

12.26.2011 4:05 PM

…the darker possibilities the Christmas stories hint at — divorce, abandonment, childhood suffering — are realities they have to live with every day. But that unhappy knowledge isn’t evenly distributed. In 21st-century America, the well-off and well-educated have the best odds of enjoying the domestic stability that the Yuletide stories celebrate, while the very people who most need resilient families — the Cratchits and Baileys, the working poor and the hard-pressed middle class — are less and less likely to have them.

This domestic dissolution plays a role in a host of socioeconomic ills: stagnating blue-collar wages, weakening upward mobility, stalling high school graduation rates, even the increase in juvenile obesity and diabetes. But it isn’t an issue that politicians of either party are particularly comfortable addressing. Liberals worry about seeming paternalistic and judgmental; conservatives recoil from the idea of increasing the government’s role in the most intimate of spheres. Thus America has a crisis of family life, but no family policy to speak of.  more

And see the State of Our Unions 2011 for more.


Marriage Disappearing? Only If You Don’t Have a College Degree

12.14.2011 10:31 AM

The Washington Post has a story on Pew’s new report showing that marriage is in retreat. The Post didn’t get my quote totally right. What I said was:

Almost half the births to high school-educated moms are out of wedlock. Among that group, we’re at a tipping point. Marriage is losing ground among middle Americans.

What can sometimes get lost in all these headlines is that the general “marriage in retreat” story is really three stories that we told in When Marriage Disappears, the 2010 State of Our Unions report from the National Marriage Project and the Institute for American Values:

1) Among the poor and the least educated Americans (about 20% of the nation), marriage has almost vanished;

2) Among working-class and lower-middle-class Americans or Americans with a high-school degree (what we call “Middle Americans”–about 50% of the nation), marriage is in trouble, is losing ground, and nevertheless has not yet disappeared from the family scene; and,

3) Among more affluent and college-educated Americans, marriage lost ground in the 1970s and 1980s but now marriage trends have stabilized in this segment of society (about 30%).

The new Pew report also shows this trend (see figure below).

What’s going on here? Partly it’s about economics–especially the fact that less-educated men now have much greater difficulty finding decent, stable jobs. Partly it’s about culture–paradoxically, we expect more from marriage and we are also more tolerant of departures from the marriage norm. And partly it’s about the unraveling of civil society. I put it this way for MSNBC:

“Strong marriages and strong families flourish in a healthy economic and community context. Those contexts have weakened particularly in working class and poor communities in the last 30-40 years,” Wilcox said. “People are less likely to be engaged in stable fulltime work, their church community, the Jaycees.”

 


‘Two Generations in Poverty: Status and Trends among Parents and Children in the United States’

11.29.2011 10:47 AM

A new Child Trends report.

Among the report’s highlights:

  • The younger the parent, the more likely a family is to be poor. Households headed by young parents (18-24) are more likely to be poor than households headed by older parents, regardless of marital status.
  • The younger the child, the more likely a family is to be poor. Families with young children (0-6) are more likely to be poor than families with older children.
  • Overall poverty rates mask much higher rates for some sub-groups, such as single-mother families, whose poverty rate was 40.7 percent in 2010, compared to 8.8 percent for married-couple families.

‘The Wrong Inequality’

11.01.2011 1:33 PM

David Brooks today:

In fact, the income differentials understate the chasm between college and high school grads. In the 1970s, high school and college grads had very similar family structures. Today, college grads are much more likely to get married, they are much less likely to get divorced and they are much, much less likely to have a child out of wedlock.

and

The zooming wealth of the top 1 percent is a problem, but it’s not nearly as big a problem as the tens of millions of Americans who have dropped out of high school or college. It’s not nearly as big a problem as the 40 percent of children who are born out of wedlock. It’s not nearly as big a problem as the nation’s stagnant human capital, its stagnant social mobility and the disorganized social fabric for the bottom 50 percent.

For more on how marriage is disappearing in middle America, see our issue of State of Our Unions released last December (and video of a discussion between me, Brad Wilcox and an audience at our Center for Public Conversation).