Allianz Life Insurance Co. of North America recently released findings from its study on finances and family structure. Seven family structures were analyzed to see how each one is uniquely impacted by finances.
The structures that were analyzed were:
- Traditional family: Those married to someone of the opposite sex with at least one child under 21 living at home.
- Multi-Generational Families: Three or more generations living in the same household.
- Single-Parent Families: One unmarried adult with at least one child under 18.
- Same-Sex Couple Families: Married or unmarried couples living together with a member of the same gender.
- Blended Families: Parents who are married or living together with a stepchild and/or child from a previous relationship.
- Older Parents with Young Children Families: Parents over age 40 with at least one child under five in the household.
- Boomerang Families: Parents with an adult child (21-35) who left and later returned to rejoin the family.
The study showed there are differences in the financial security of traditional versus modern families. Those with a nontraditional structures seem to be struggling the most.
About 85% of the more than 4,500 respondents polled identify themselves as middle class. However, 57% of modern families say that they are either “making ends meet,” “struggling financially,” or “poor,” reports Allianz Life Insurance Company of North America. This is 10 percentage points higher than traditional families.
In addition, 49% of nontraditional families say they are living paycheck to paycheck. This is compared to 41% of traditional families. What’s even more troubling is that 25% of survey respondents are not saving at all for the future.