Copyright Goodheart-Willcox Co., Inc. Section 2.2 Young Adult and Family Finances 51 • protecting against financial losses and • computing and paying taxes. If you choose to live with one or more roommates, you can reduce your overall costs by sharing expenses. Before moving in with roommates, it is a good idea to discuss financial and living arrangements in detail so each of you knows what to expect. Housing decisions are covered in Chapter 12. Family Life Cycle After a period of living alone or with roommates, many adults marry and start families. The family life cycle consists of the stages a family passes through over its lifetime. The five stages are beginning, expanding, developing, launching, and aging. There are typical patterns of social and financial behavior families follow at different periods in the life cycle. In each stage, there are family as well as personal expenses to cover. Perhaps the most important factors affecting family budgeting decisions will be age and stage in the family life cycle. Stages in the family life cycle are explained in detail in Figure 2-8. Your goals and needs, as well as earning and spending patterns, will change with each stage. Becoming familiar with these patterns can provide you with a framework for your own financial planning. Goodheart-Willcox Publisher Figure 2-8 Career and income characteristics, as well as typical expenses and obligations, tend to follow a pattern at different stages of the life cycle. Financial Aspects of the Family Life Cycle Stages in the Family Life Cycle Career and Income Characteristics Typical Expenses and Obligations Beginning Stage Marriage Getting started as a couple Establishing a home Finishing education Making career decisions Entering the workforce Low or no income, with gradual increases Living expenses Tuition and/or repayment of education loans Auto loan payments and insurance Life, health, and other insurance Home furnishings Savings and retirement contributions Income tax Expanding Stage Infant years Birth/adoption of first child Increasing income and job responsibilities One or two full-time incomes Decreased income if one parent leaves work for childbearing Child care and baby equipment Education fund Increased insurance coverage Prenatal, birth, and postnatal health care Income taxes Retirement contributions (Continued)