Should be a big “Duh!” Unemployed parents simply mean that the household’s buying power is definitely affected and that the whole family including the kids needs to adjust. Thing is, according to this WSJ report, it’s not just the here and now that gets affected.
Thanks to the recession, many middle class Americans are now suffering from unemployment and reduced income. While this definitely affects the short term, long term effects can even spill over to their children’s lives.
Opportunities created by parents’ income do are largely contributory to kids’ future success. Given parents’ financial situations today, they are not likely able to help out their kids.
The money needed for college becomes hard to raise. Loans need to be taken and that even makes prospects worse for kids since these leaves them with thousands of dollar in debt even before earning their first pay check.
According to WSJ, those with college degrees generally fare better than their high school grad counterparts. Unemployment is lower and incomes are definitely higher for college graduates.
In addition, when parents used to help out kids pursue the American dream by giving them funding for start up capitals and such, parents of today won’t just have the luxury to help kids out.
