Changes that Have Occurred with Regard to Personal and Family Finances - Essay Example

Most of the earnings have been dedicated to the basics, which include taxes, health covers, car loans, mortgages, and food. Very little is left for saving. Warren and Tyagi say that majority of the current families are unable to survive for more than a month when they lose their regular sources of income (34). Based on this, the number of households going bankrupt is on the rise. The common characteristic of those following this path is the presence of children, with families that have children being two times more likely to go bankrupt than those without.

Personal income has also experienced changes over the years. This is attributed majorly to economic and social causes. Downward economic trends like those experienced during the 2008 economic recession have reduced personal finances. Social trends such as the widespread use of credit cards and the need to own houses and cars have also impacted on the income (Warren and Tyagi 56). As people strive to meet these needs, they put a lot of strain on their earnings.