4. Are Kids Investments and Can Marriages Diversify?

Of the many questions I ask my undergraduate students during the semester-long course on personal finances, the question I ask to kick-start the lecture on family economics provoke the strongest response. Here they are: Are children financial assets or liabilities ? And, did your parents have you for consumption or investment purposes?

After the yelling subsides and the classroom returns to normal, I add that I’m sure their parents love them very much (for the most part)—but note that at the same time, my students must acknowledge that kids aren’t free, and they can have quite a detrimental impact on a family’s personal finances. Here are some facts: According to my much-referenced Survey ...

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