But is this adequate?
I know a man who raised 7 kids on a high school teacher’s salary. His wife was a stay at home mom. Yes, he did teach driver ed in the summer and did some coaching too, for extra money. But every last one of his children went to college, and they’re good people as near as I can tell. I’m sure it wasn’t easy, but they did it.
We have a fair number of recently immigrated Hispanics in our town. They always have money and larger families than do most “Anglos”. You see their women in good weather at the yard sales buying nearly pristine clothing for their children for next to nothing. You see them buy “clunkers” and doll them up themselves to the point that they really are neat looking. I don’t think I ever go into O’Reilley Automotive without seeing Hispanics in there buying car parts, oil filters and such.
I’m not sure one has to be in the “1%” to raise several children. What I think one has to be is in the lower percentages when it comes to spending. Does that mean no cell phone with all the trimmings for 13-year-old Suzie? Yes, probably. Does it mean young Tommy doesn’t get to buy the jeans “all the other kids wear” and has to wear Walmart jeans? I expect it does.
And do all college kids need to have cars? I know a guy with nine kids. Two of them are in University of Dallas right now. Both have scholarships, but it’s still a struggle. There was no question at all of them having a car.
One of the things I think is also missing nowadays is the willingness (and perhaps ability for many) of grandparents to help out. Many years ago when I was in banking, a very high percentage of down payments were made by grandparents. I still close loans for lenders, but I don’t see that anymore. Grandparents, I think, are now doing “all the travel they never got to do before”. I even see grandparent-age people buying or building expensive new houses for themselves. What are they thinking?
- I suspect your high school teacher example guy either lives in a low cost area or did this some years ago or the family had an inheritance of some kind or massive student loans. In higher cost areas, even raising two children on a moderate income can be quite a feat.
Before we finally bailed on the DC area, I found myself looking at smallish high $400s houses in iffy neighborhoods with so-so public schools in suburban Maryland (and I went through some rough neighborhoods). It was immensely demoralizing. We had “only” two children at the time and I was starting to understand enough about money to realize we couldn’t afford the area. Fortunately, we were able to leave, but not everybody can.
- Public high school teachers typically have better benefits than people that make the same income elsewhere. So, it’s not unlikely that your guy had a good retirement plan and good medical care for the family, both major issues.
If a more typical family had their last child at 43 and delayed much retirement savings until they had their last child out of college, their serious retirement savings could only begin at 65.
Oops.
- Many young parents now carry heavy student loans and are trying to pay them while raising a family on a moderate income.
- It takes a long time to launch young adults these days, so parents can expect it to take a while to get adult children off the family dole. From what I hear, anybody who gets their kids to financial independence by 25 is doing awesome. .
- I have to say that this makes me really mad: “What I think one has to be is in the lower percentages when it comes to spending. Does that mean no cell phone with all the trimmings for 13-year-old Suzie? Yes, probably. Does it mean young Tommy doesn’t get to buy the jeans “all the other kids wear” and has to wear Walmart jeans? I expect it does.”
This is one of the biggest misconceptions out there. Everybody points the finger at “stuff,” but small consumer items aren’t a big deal–stuff is very cheap. They were selling $35 Kindle Fires on Black Friday. What’s expensive is an ER bill, major home repair bill, major dental bill, new washer, new air conditioning, living in a school district with good public schools or paying for private school and saving for college.
- You do have some interesting points here:
“One of the things I think is also missing nowadays is the willingness (and perhaps ability for many) of grandparents to help out. Many years ago when I was in banking, a very high percentage of down payments were made by grandparents. I still close loans for lenders, but I don’t see that anymore. Grandparents, I think, are now doing “all the travel they never got to do before”. I even see grandparent-age people buying or building expensive new houses for themselves. What are they thinking?”
I have to give credit to my generous in-laws, as they were able to contribute half of our house downpayment. Yay in-laws!
However, both sets of Boomer grandparents live far away, are preoccupied with work, and rarely make it here.
We definitely do not get the sort of consistent, hands-on grandma help that our parents got from their parents.