Copyright Goodheart-Willcox Co., Inc. 54 Chapter 2 Personal Financial Planning As family conditions change, financial planning concerns change, too. For example, single individuals and childless couples, single-parent families, and divorced or separated people have added considerations. Singles and Childless Couples Singles and couples with no dependents do not have the expenses related to raising children, such as school and medical expenses. Both groups may spend more throughout the life cycle on travel, leisure, and other extras. Some may choose to give more to charitable causes. Both groups often feel a greater responsibility to help their aging parents. Single-Parent Families Females lead most single-parent families. Their income is typically less than that of two-parent families and single-parent families led by males. Saving and planning for future security is sometimes difficult as these families struggle to meet current expenses. Government and community services and assistance can be very helpful for single-parent families. Separated and Divorced Individuals Separated and divorced people face a unique set of financial concerns. They may have the following expenses: legal fees, alimony, child support, and property settlement costs. The cost of establishing and maintaining a separate home Economics in Action Great Recession When the Great Recession hit the United States in late 2007, the impact was felt by millions. Many young adults struggled to find work. Businesses stopped hiring and many employees lost their jobs. Demand dropped and growth came to a near standstill. Financial institutions made fewer business and consumer loans. Credit sources dried up. When people lost their jobs or had their hours reduced, entire families suffered. Long-term goals such as higher education or starting a business had to be put on hold. Many people lost health insurance that had been provided through an employer. Unemployment led to many families losing their homes. Loss of income meant lifestyle changes for almost everyone. There was less money and much more anxiety. Retirement savings and home values dropped along with the stock market. People who were retired or nearing retirement were forced to work beyond their planned retirement age, if they could find work at all. In 2009 the recession was declared to be over. The stock market and corporate profits appeared to be in recovery and the housing market began coming back. However, the economic recovery has been slower and weaker than many would like to see. Families and businesses continue to struggle in the aftermath.