Major American cities are experiencing a noticeable decrease in child populations, a situation further aggravated by the pandemic and soaring living costs.
Unraveling a Growing Trend
An ongoing trend suggests that the number of families with children in urban areas is dropping, a situation worsened by the rise of remote work during the COVID-19 pandemic.
The escalating costs associated with urban living, including skyrocketing housing prices, are significant factors pushing families away from metropolitan areas. While cities are expected to have a higher cost of living compared to rural areas, the extent of the current expenses is deemed excessive and a deterrent for families.
Increased crime rates and growing safety concerns have also contributed to families deciding to move away from cities.
Lastly, the shift towards remote work has lessened the need for families to reside in cities, providing them with a broader range of residential options. And as families accumulate wealth, they tend to seek out regions offering more living space, often leading them away from densely populated city centers.
Assessing Family-Friendly Cities
Manhattan Institute fellow Robert VerBruggen conducted extensive research that delves into the family-friendliness of 200 American cities, considering factors such as child poverty, educational achievement, and social mobility.
VerBruggen’s study indicates a noticeable concentration of families in the central parts of the country, while coastal regions exhibit “child-starved” characteristics. Many families face difficult choices, such as leaving a beloved city due to the prohibitive costs or unsuitable environments for raising children.
The Crucial Role of Education
Access to quality public schools is a significant consideration, with property values often reflecting school zoning, thereby influencing family residential choices.
The pandemic-induced closures of schools have exacerbated parents’ frustrations, intensifying feelings of helplessness regarding their children’s education.
The Need for Policy Reforms
Resistance to modifying zoning laws and the high cost of living are significant barriers that deter families from settling in cities. Additionally, the prevalent visibility and pervasiveness of crime in densely populated urban areas strongly influence people’s decisions to relocate.
Furthermore, the nationwide decline in fertility rates is a pressing concern that extends beyond urban areas, necessitating immediate attention. Implementing reforms aimed at improving living conditions for families in cities has the potential to address the broader issue of declining fertility rates across the entire nation.
Pondering a Future Without Children
The debate persists on whether cities can thrive without a steady influx of young families and what alternatives exist for Americans once they decide to start a family.
Addressing the challenges as a result of the decreasing number of children in major cities is of paramount importance to ensure a prosperous and sustainable future for America’s urban centers.
The transition to adulthood has always been a difficult time, but Gen Z is claiming it’s much more complicated now than in their parent’s time. Have a look at what has changed and see if you agree!
A Generation in Transition
As the torchbearers of the future, Gen Z grapples with distinct challenges that set them apart from previous generations on their journey to adulthood.
A staggering number of Gen Z individuals find traditional milestones such as homeownership, securing a job, and earning promotions much more challenging than their parents did.
Gen Z is confronted with a shifting job market where the conventional concept of job security is not a priority as temporary and contract work defines their professions.
The Weight of Student Loan Debt
High levels of student loan debt cast a long shadow over Gen Z’s financial outlook, influencing major life decisions. Starting a family, purchasing a home, or pursuing advanced education are all impacted.
Despite these formidable challenges, Gen Z exhibits remarkable resilience and determination. They refuse to be discouraged and continue to pursue their dreams and ambitions.
Inflation has contributed to Gen Z’s financial anxieties. Rising prices for essential items such as groceries, fuel, and housing contribute to these concerns.
Distrust in the Stock Market
A significant portion of young investors harbor skepticism toward the stock market. This skepticism stems from past economic shocks, particularly the 2008 financial crisis.
The 2008 financial crisis left a lasting impression on Gen Z. Many witnessed their parents grappling with job losses and housing foreclosures, instilling concerns about their own financial security.
Cryptocurrency has emerged as an enticing alternative for Gen Z. Its potential for financial independence and unique investment opportunities has reshaped their financial decision-making.
Determination Amid Financial Challenges
The rising costs of housing, education, and daily expenses pose formidable obstacles to Gen Z’s pursuit of traditional life milestones.
One study asked 1039 Gen Zers about their experiences in the professional world, giving striking results.
According to the study, 55% of Gen Z found it “much harder” to buy a house, whereas 44% admitted finding a job is harder.
“This is purely a snapshot of what young people perceive their lives to be like compared to their parents,” said the founder of Generation Lab, who founded the data.
Both promise and uncertainty mark the future for Gen Z, but do you agree they have it harder than ever before?
Americans are feeling the pinch more than ever as everyday expenses, from utility bills to child care, are soaring. This surge is reshaping the financial landscape of the average household, challenging the pursuit of the so-called “American Dream.”
Electricity Bills Shocking Households
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Electricity costs have surged, with a 25% increase since January 2020. This hike has been particularly severe in California, where bills have risen by 59%.
Northeastern States Feel the Heat
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States like Maine and New York are not far behind, with electric costs jumping by 42% and 38%, respectively. These soaring prices add to the financial strain on households.
Natural Gas Prices Adding to the Chill
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As winter approaches, the cost of heating homes is another concern. Natural gas prices have climbed 29% since January 2020, adding to the woes of budgeting families.
Car Insurance Rates Accelerating
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Car insurance costs have also escalated, now 33% higher than in early 2020. This outpaces the growth seen in the preceding three years.
Record-Breaking Car Payments
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The cost of owning a new car has reached an all-time high, with average monthly payments hitting $736. An alarming 17.5% of Americans pay over $1,000 monthly for their vehicles.
Healthcare Premiums Soaring
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Employer-sponsored health insurance premiums for families have seen a significant 7% increase, marking a stark contrast to the modest 1% rise in the previous year.
Child Care Costs: A Hefty Burden
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Child care costs are another major financial burden, averaging $10,853 annually, which is about 10% of the median income for married couples.
Regional Variations in Child Care Costs
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Child care expenses vary widely across regions, with the Northeast being the most expensive. For two children, parents might pay as much as $30,514 annually.
Child Care vs. Housing Costs
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In many areas, the annual cost of child care for two children surpasses average mortgage payments by 1% to 53% and rent by a staggering 100%.
The Impact on the American Dream
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These escalating costs are impacting perceptions and attainability of the American Dream, with many feeling the odds are increasingly stacked against them.
Comparing Costs to Salaries
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The average child care professional earns $28,520 per year, highlighting the disparity between earnings and the cost of services like child care.
A Challenge for Homeowners and Renters
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Both homeowners and renters are equally burdened by these rising costs, challenging their financial stability.
Bidenomics Under Scrutiny
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The Biden administration’s economic policies, dubbed ‘Bidenomics’, are under scrutiny as citizens grapple with these escalating costs.
A Contradiction in Economic Indicators
Despite reports of a drop in the energy index, the reality for many Americans contradicts these figures, with personal expenses continuing to climb.
The Future Financial Landscape
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With no immediate relief in sight, Americans are bracing for continued financial challenges, reshaping their lifestyles and long-term plans.
Adapting to the New Normal
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In the face of these challenges, families are reevaluating their budgets and priorities, finding new ways to cope with the ever-increasing cost of living.
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Millennials and Gen Xers are increasingly joining the “Sandwich Generation,” caring for both children and aging parents. The demands of elder care, including the staggering $522 billion in unpaid services annually, highlight a growing crisis in America’s long-term care system.
Economic and Mental Strain
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The necessity for long-term care among the elderly is straining both the economy and the mental health of middle-aged caregivers. Balancing work with the needs of children and aging parents is becoming a significant challenge, necessitating a rethink of our approach to long-term care planning.
A Call for Early Savings
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An urgent restructuring of the social safety net is proposed, encouraging Americans to begin saving for long-term care from an early age. This foresight can help ensure that entitlement programs remain robust and accessible for those in greatest need.
Understanding Long-Term Care
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Long-term care, encompassing a range of services for the elderly who can no longer care for themselves, is a growing necessity. By age 65, seven out of ten individuals will require some form of long-term care, with nearly half opting for paid services.
Rising Costs
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The cost of long-term care in the U.S. is on a steep incline, with out-of-pocket expenses contributing significantly to the financial burden on families. This trend is set to continue as more Baby Boomers retire, increasing the demand for these services.
The Role of Medicaid
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Currently, Medicaid bears the largest portion of long-term care costs in the U.S. This has led to a reliance on the program by individuals across income levels, sometimes involving the liquidation or transfer of assets to qualify for benefits.
The Medicaid Loophole
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Experts like Stephen A. Moses have highlighted the issue of middle- and high-income individuals exploiting Medicaid loopholes to finance their long-term care. This approach undermines responsible financial planning and strains the system.
Promoting Responsible Planning
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Moses advocates for policy changes that close these Medicaid loopholes and encourage Americans to plan independently for their long-term care needs. This involves public awareness campaigns and market-based solutions.
A Success Story in Washington
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Washington state’s program, which encouraged the purchase of private long-term care insurance, successfully boosted sales and participation. This model could serve as a blueprint for nationwide reform.
Affordability of Care
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Contrary to common perception, Moses’s research suggests that the financial burden of long-term care is more manageable than previously thought, with many older adults having sufficient resources for at least two years of assisted living.
Strategies for Funding Care
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Moses proposes several strategies for individuals to fund their long-term care, including tapping into retirement savings and home equity. These resources present viable options for many Americans.
Redefining Personal Responsibility
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A key aspect of Moses’s proposal is the conceptual shift towards viewing long-term care as a personal responsibility. With planning, it’s an achievable goal for most Americans.
Preparing for the Boomer Impact
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As Baby Boomers age into their 80s, the pressure on the long-term care system is set to intensify. Lawmakers, retirees, and younger generations alike need to take steps now to prepare for this inevitable challenge.
Easing Federal Budget Strains
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By encouraging personal responsibility and planning for long-term care, not only can individuals secure their futures, but the strain on federal budgets can be significantly eased.
A Future-Proof Plan
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The long-term care crisis presents an opportunity for transformative change. By adopting these strategies, America can better prepare for the growing needs of its aging population and secure a sustainable future for its care system.
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We have totes for everything — storing holiday decorations, keeping the umpteen feral cats in our neighborhood warm during cold winter nights, planting small varieties of tomatoes, etc.
It’s not quite as bad as my mason jar habit,but it’s getting there…
Then, one summer, we found an extremely value-priced Imaginext playset at a garage sale, and my love of totes jumped to a whole new level.
We made the $2 plunge and bought the toy for our son, but as “luck” would have it, he was being extremely contrary that day, so a new toy wasn’t in the cards for him. While we pondered where we could store this fairly sizeable and yet 99%-cheaper-than-new playset, my thoughts strayed to a large, grey tote we had in our attic.
So, with the toy safely stashed in our 150-year-old attic, away from prying hands and nosey toddlers, we decided we’d simply give it to our son for his next birthday, which was in a few months. As per routine, we went out the next weekend to garage sales and found a really cool toy guitar for our daughter. Again, it was, I think, a dollar, but we don’t like the habit of giving our kids presents for no reason, so up to the attic it went.
Thus, through the magic of simulated time travel and a knack for spotting good deals on gently used toys, the Future Present Tote was born.
But What About Buying New Toys?
When I was a kid, I’d always get a combination of hand-me-down toys and new toys for holidays and birthdays. (I also got socks and stuff, but I try to block out the more sadistic traits of my family and focus on the good.)
Whether the present was a brand new doll or a tea set from Goodwill, I never knew the difference because it was always new to ME. I mean, it’s possible my toys were judging each other on being shiny and new, like some Mean Girls/Toy Story crossover, but who was I to get involved?
As a parent, though, I totally understand why my mother or grandparents might have opted to give me secondhand stuff — toys are expensive.
Not only is the cost an issue, but new toys are…well…sorta wasteful, don’t you think? When you buy a used toy or doll, you cut down on package waste, and you might save an item that was otherwise destined for the landfill. You put money directly into the hand of an actual person rather than a huge corporation. And, if after their presents are opened, your child decides within a few months they no longer like Power Rangers, you are out like $10 instead of $100+.
The New Adventures of Old Toys
If you have older children, I can see why you might hesitate to give them “used” toys, but you’d be surprised what you can find at garage sales and online resale sites that are actually in really great shape! For example, when I worked at PBS, I went on a huge Bob Ross kick and ended up buying a Bob Ross paint set.
Once I realized that maybe I wasn’t so great at painting happy trees, I decided to sell it — nearly new and at a third of the cost! Something like that would make for a great gift for older kids.
On the other end of things, if your children are young enough, you can also “retire” certain toys to the future presents box when they get new ones. This frees up space, reduces clutter, and allows you to keep them interested in a lesser amount of junk well-loved toys and stuffed animals. Then, after a while, you can reintroduce the old toy and watch them regard it with renewed interest.
Fantastic Deals and Where to Find Them
Where to stock up on future presents is probably the most fun part of the whole experience, aside from the money you’ll save. We love spending a Saturday morning perusing garage sales during the summer — it’s a great way to score deals while also enjoying sunshine and exercise as a family! Typically, we find some decent things in the fall, but those first spring garage sales are where it’s at.
People are very eager to clear their house out after winter, and especially since Christmas’ excesses and new toys are somewhat still lingering, you can get some really cool stuff dirt cheap.
Another opportunity is Facebook’s Marketplace feature. As your kids’ birthdays approach, run a few casual searches on their favorite things, and you’ll be surprised at what you can find. We picked up a Doc McStuffins playset for my daughter for $1 that would normally go for $30, were it brand new. It’s in pristine condition, not missing anything, and the family was happy to get rid of it as their children had grown out of it.
Granted, it’s a bit bigger than the tote, but the concept still holds true — she got it for Christmas and ADORES it.
Give Totes a Chance
This isn’t the first nor last time I’ll wax poetically about the usefulness of totes, so you might as well get on board. Pick up a tote and pick a hiding spot because this method of saving money is a keeper.
The only downside, of course, is that if you don’t hide it well, and I mean really well, it’s like a time capsule treasure chest for sneaky little hands. Aside from that, though, get yourself a future presents tote and start saving money for your future in the present.
The rise in U.S. inflation, mainly due to surging energy prices, has a direct impact on everyday Americans. As energy costs increase, so do expenses at the gas pump and potentially utility bills. While wage growth offers promise, it’s offset by rising living costs, leaving disposable income stagnant. Uncertain interest rate cuts mean borrowing for mortgages, car loans, and credit cards may remain costly.
CPI Numbers Paint a Concerning Picture
Recent data from the Consumer Price Index (CPI) reveals an inflationary uptrend, with the CPI rate for the 12 months leading up to August jumping to 3.7%.
This figure overshoots the Federal Reserve’s preferred two percent benchmark. Aided largely by a significant hike in energy costs, the current inflation status potentially puts a pause on the anticipated central bank interest rate reduction.
Nathaniel Casey, a seasoned investment strategist at Evelyn Partners, emphasized that the consistent growth of the US economy may signal more interest rate hikes from the Federal Reserve.
The U.S. Economy’s New Challenge
While the Federal Reserve’s interest rate cuts seem unlikely, it’s essential to understand the broader implications of these economic shifts on the average American household.
The current inflation trend, dominated by rising energy prices, paints a mixed picture for the U.S. economy. On the one hand, there’s economic growth and wage hikes, but the tangible effects of inflation could squeeze the average household budget.
A Glimpse into the Everyday American’s Pocket
For the average American, inflation isn’t just a statistic; it’s a tangible shift in their daily purchasing power. A rise in energy prices means higher costs at the gas pump and potentially increased utility bills.
While wage growth may seem like a boon, it can be offset by the rising costs of goods and services, leaving net disposable income almost unchanged.
With interest rate cuts seeming distant, borrowing costs for mortgages, car loans, and credit cards might remain high.
The Driving Force: Energy
The hike in energy prices is the key factor driving this upward inflation trend. Energy inflation spiked to 5.6% due to higher crude oil prices, causing gasoline prices to rise significantly in August.
Gasoline prices played a big role, contributing to more than half of the overall monthly inflation increase.
But it’s Not Just Energy. While energy prices play a predominant role in the overall inflation picture, they aren’t the sole contributors. Core inflation, which doesn’t include energy and food costs, dropped to 4.3% in August from the previous month’s 4.7%.
This suggests that while energy costs are an undeniable influence, other sectors remain relatively stable. Another inflation influencer is the sustained wage growth, with average hourly earnings in August mirroring core inflation at an increase of 4.3%.
Awaiting FOMC Decisions
Casey states that even though recent data shows lower inflation and a calmer job market, the FOMC (Federal Open Market Committee) might still opt to keep higher interest rates for a while. The FOMC’s decisions will shape the short-term financial landscape for everyday Americans.
Any decisions related to interest rates will be revealed at the FOMC meeting on September 19-20.
