The effect your family has on your financial confidence

Feb 28, 2015, 10:03 AM | Updated: 10:03 am

According to a report from LearnVest, your financial confidence dips in your 30s. The report shows 20- and 40- somethings have the highest levels of confidence in their financial situation.

Forbes said the dip in confidence has to do with a person's career trajectory. Once people reach 30 years of age, they change jobs less frequently, allowing for slower salary growth. In their 40s, more well-paying positions become available, which make older Americans feel more confident with the money they’re making.

This may be a result of raising a family, which is increasingly occurring in a person's mid to late thirties (even though the Central Intelligence Agency reports the average age for giving birth rests at 25 years old).

Couples are also getting married later, with most couples waiting until their late 20s to tie the knot, according to the Pew Research Center.

So for those first few years of marriage, people are confident with their money. They have shared incomes and times are easy. But once they have a child, those numbers decrease because their spending, especially on items for a new baby, increases.

“Because of the economic insecurity of life today, there are some tough trade-offs that families are having to make,” Ellen Galinsky, president of the Families and Work Institute told USA Today. “These aren't luxury trade-offs, like not getting the fanciest strollers. These are food and 'who's going to stay with my child' issues for so many families.”

Raising a child costs about $245,000, which I wrote about in August of last year. This is a heavy financial burden that married couples take on. The LearnVest report chart reflects this as confidence dips across all income brackets during those mid- to late-30s.

But why the increase in financial confidence at 40? Because that's the time in a parent's life when many children reach 18 years of age and plan to leave home for college or other life experiences.

At this time, parents again have a shared income and don’t necessarily have to put all their resources towards raising a child. This allows couples to spend more quality time with each other, which increases their happiness, according to The New York Times.

“There are fewer interruptions and less stress when kids are out of the house,” said Dr. Sara Melissa Gorchoff from the University of California Berkeley to The New York Times. “It wasn’t that they spent more time with each other after the children moved out. It’s the quality of time they spent with each other that improved.”

Email: [email protected]
Twitter: @herbscribner

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

(Facebook File Photo/Phoenix Police Department)...

Driver detained after pedestrian killed while crossing Phoenix street

A driver was detained after a pedestrian was killed while crossing a Phoenix street in a possible hit-and-run collision early Monday, authorities said.
14 hours ago
Doug Wilks, executive editor of the Deseret News, left, moderates a panel with Paul Carrese, Jack M...
D. Hunter Schwarz | Deseret News

Why Arizona voters might not be as polarized as they seem

Arizona voters aren’t as divided as it seems, but it will take work to make politics reflect that reality, according to the Deseret Elevate panel.
14 hours ago
(Photo by Kevin Winter/Getty Images for KROQ)...

Brit rockers Muse to bring world tour to Glendale arena in April 2023

Grammy Award-winning British rockers Muse will bring their world tour to metro Phoenix in spring 2023.
14 hours ago
(Par-Tee Tour Golf Festival Photos)...

It’s going to be a Par-Tee when golf and music festival takes over Valley course

Part golf tournament, part music festival, the Par-Tee Tour is coming to Mesa's Dobson Ranch Golf Course in November.
14 hours ago
(Twitter Photo/Arizona Department of Transportation)...

Motorcycle rider dies after falling, getting hit on Glendale freeway

A motorcycle rider was killed on a West Valley freeway late Sunday after falling then getting hit by a vehicle that fled the scene, authorities said.
14 hours ago
(AP Photo/Jae C. Hong)...

Child shot in Phoenix neighborhood, rushed to hospital; suspects outstanding

A child was shot and rushed to the hospital Sunday night with wounds that weren't believed to be life-threatening, Phoenix police said.
14 hours ago

Sponsored Articles

Quantum Fiber

How high-speed fiber internet can improve everyday life

Quantum Fiber supplies unlimited data with speeds up to 940 mbps, enough to share 4K videos with coworkers 20 times faster than a cable.
Sanderson Ford

Don’t let rising fuel prices stop you from traveling Arizona this summer

There's no better time to get out on the open road and see what the beautiful state of Arizona has to offer. But if the cost of gas is putting a cloud over your summer vacation plans, let Sanderson Ford help with their wide-range selection of electric vehicles.
Day & Night Air Conditioning, Heating and Plumbing

Most plumbing problems can be fixed with regular maintenance

Instead of waiting for a problem to happen, experts suggest getting a head start on your plumbing maintenance.
The effect your family has on your financial confidence