NAME:_________________________
Assignment Directions:
- In this assignment, you will compare the financial stress of two families with children; one a single parent with a graduate degree and the other a pair of parents working with bachelor’s degrees.
- The first table below is an example of a completed table, comparing the budget one individual to a married couple.
- Using data gathered from https://www.onetonline.org/, find data on the median wage in your state for the individuals listed on the second table below.
- Use https://www.irs.gov/pub/irs-pdf/i1040tt.pdf to determine the tax liability of each family.
- Subtract the tax liability from the family income.
- Divide the annual post-tax income by 12 to determine monthly income.
- Find housing costs in your area to find a residence for the single parent family and for the dual parent family. These costs do not have to be the same.
- Find child care costs in your area for taking care of two children under 5-yars-old.
- Subtract all listed expenses from the income to determine how much money a family could take home at the end of the month.
- Identify what percentage of post-tax income is spent specifically on child care.
- After you have completed your table, answer the questions below the tables.
| EXAMPLE TABLE | Single Parent, Dr. Emma Flynn, Clinical Psychologist | Married Parent, David Baker, Social and Human Service Assistant | Married Parent, Bella Baker, Recreational Therapist |
| Yearly Salary in your state | $62,250 in Arizona | $32,030 in Arizona | $46,480 in Arizona |
| Total family income yearly | $62,250 | Add David and Bella’s income: $78,510 | |
| Using the IRS Tax and Earned Income Credit Tables (https://www.irs.gov/pub/irs-pdf/i1040tt.pdf ) Identify how much each family owes in taxes. | Filing as Single: $9,548 | Married Filing Jointly: $9,035 | |
| Yearly income after taxes | $52,702 | $69,475 | |
| Monthly income (Post Tax Yearly income divided by 12) | $4,391.83 | $5,789.98 | |
| Monthly Student Loan Payment | ($750.00 for 20 years) $750.00 | ($300 x 2 for 10 years) $600.00 | |
| Monthly Grocery Bill | $300 | $450 | |
| Monthly Utility Bill | $200 | $200 | |
| Monthly Vehicle Costs (Payment, Gas, Insurance) | $250 | $250 | |
| Monthly Housing Cost (Rent/Mortgage) in your area | $1,300 | $1,500 | |
| Monthly Childcare Costs in your area for 2 children | $1,400 | $1,400 | |
| Total Income-Expenditures each month (Post-tax income minus all listed expenditures) | $191.83 | $1389.98 | |
| Percentage of Monthly income spent on childcare (Childcare costs divided by post-tax income, multiplied by 100) | 31.88% | 24.18% |
| ASSIGNMENT TABLE | Single Parent, Christine Chapelle, Advanced Practice Psychiatric Nurse | Married Parent, Juan Ramirez, Psychiatric Technician | Married Parent, Cecilia Ramirez, Correctional Officer / Jailer |
| Yearly Salary in your state | $ | $ | $ |
| Total family income yearly | $ | Add David and Bella’s income: $ | |
| Using the IRS Tax and Earned Income Credit Tables (https://www.irs.gov/pub/irs-pdf/i1040tt.pdf ) Identify how much each family owes in taxes. | Filing as Single: $ | Married Filing Jointly: $ | |
| Yearly income after taxes | $ | $ | |
| Monthly income (Post Tax Yearly income divided by 12) | $ | $ | |
| Monthly Student Loan Payment | ($600.00 for 20 years) $600.00 | ($300 x 2 for 10 years) $600.00 | |
| Monthly Grocery Bill | $300 | $450 | |
| Monthly Utility Bill | $200 | $200 | |
| Monthly Vehicle Costs (Payment, Gas, Insurance) | $250 | $250 | |
| Monthly Housing Cost (Rent/Mortgage) in your area | |||
| Monthly Childcare Costs in your area for 2 children | |||
| Total Income-Expenditures each month (Post-tax income minus all listed expenditures) | |||
| Percentage of Monthly income spent on childcare (Childcare costs divided by post-tax income, multiplied by 100) |
Questions:
- Compare the budgets of the Chapel and Ramirez families. What are some specific challenges that each family will face?
- Consider how much money the families have to spend on childcare, are there any options that can reduce that cost? Do these alternatives come with a different kind of cost?
- What sort of challenges will each of the families experience balancing work, childcare, self-care, and other relationships? Which families appear to have advantages or disadvantages and why?
- Reviewing the data above, provide two reasons the transition from being childless to having children can be particularly stressful for new parents.
