The Two-Income Trap WHY MIDDLE-CLASS PARENTS ARE GOING BROKE

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The Two-Income TrapWHY MIDDLE-CLASS PARENTS ARE
GOING BROKE

• SINNETTE, GERALYN
• ENGLISH 1301
• 97776
• 700 PM 800 PM TTR
• PROFESSOR HORN

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Why is this important to me?

• The Two-Income Trap was informative and helped to
  dispel some myths about the type of persons who
  file for bankruptcy, the over-consumption myth,
  as well as exposing the credit industry.

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What is your response to it?I agree!

• Two-income families today differ from their
  counterparts three decades ago.
• An unexpected expense to the family budget such
  as a layoff could result in a financial crisis.
• The mortgage is the largest monthly expense, and
  most people cannot quickly adjust their budget in
  the wake of a financial crisis.

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What is the author saying?

• Middle-class is going broke!
• Parents are trying to provide a safe environment
  and a good education for children.
• Families lack the safety-net of the stay-at-home
  mom.
• Bankruptcy is painful and can have a
  long-lasting effect on the family.
• Financial institutions prey on families who are
  already in debt by offering second mortgages and
  credit cards at high interest rates.

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Three Major Points in My Book Report

• The Myth of the Immoral Debtor
• The authors dispel the myth that people who file
  bankruptcy are over spenders.
• Bankruptcy does not carry the shame it once did
  in the past.
• Going Alone in a Two-Income World
• Mothers often have to remarry to regain financial
  footing.
• Not all dads are deadbeats.
• Mortgaging the Future
• Minority homeowners are at the most risk.
• High interest rates on credit cards make debt
  inevitable.