Identify the shifts that occur in spending when children arrive in a young family. (Check all that apply.)

Question

Multiple select question.

More spending on credit

Less spending on credit

Focus on education and medical spending

More spending on vacations

Less saving of income

Answer 1

When children arrive in a young family, the following shifts in spending typically occur:

• More spending on credit: Families may rely on credit to cover the additional expenses related to children, such as diapers, baby gear, and childcare.

• Focus on education and medical spending: There is often an increase in spending on healthcare (pediatrician visits, vaccinations) and future education costs (saving for college, educational activities).

• Less saving of income: Families might find it challenging to save as much due to the increased immediate expenses associated with raising children.

The following options are typically not accurate in this context:

• Less spending on credit: This is generally not the case as families often increase their reliance on credit during this time.

• More spending on vacations: Families may actually spend less on vacations due to the added expenses of children, leading to prioritizing budget for family-related costs over leisure travel.

So the correct answers are:

• More spending on credit
• Focus on education and medical spending
• Less saving of income