Originally Posted by simple girl
Then, yesterday, my brother called me to tell me he was laid off. He works in the trucking business. His wife was laid off last year in May and has yet to find a job.
Today's life style of dual incomes adds a lot of risk to recessionary, high unemployment times like these.
Our son and DIL both have good jobs as engineers, she a chem eng and he a mechanical. Each contributes about 50% to family income. They have three kids (our beloved grandkids!
) one in full time daycare and two in before and after school care.
If either our son or our DIL was laid off, DW and I are prepared to pay their mortgage and babysit to eliminate the daycare costs during the unemployment period. They have reasonable savings (about $300k at age 35 predominately in tax deferred accounts) and no debt other than the mortgage so they really wouldn't need emergency funding if one was out of work. But we'd contribute as we'd hate to see them lose the savings mentality we've pounded into their heads the past decade.
If both of them were laid off (gawd.....hate to think about it!), DW and I could/would do the same things but if the situation persisted for more than a few months, the kids would have to start withdrawing from savings, possibly even from deferred savings. Yuuuch...... They're on a roll and I'd sure hate to see "saving" turn into "withdrawing."
By far the biggest impact on our lives since this recession started is keeping two sets of books....... one for life with both kids working and one for life with one unemployed and us paying their mortgage during the job hunt. The second biggest impact has been the reduction in value of our portfolio which, despite the decent second quarter performance, is still down significantly.
We're ready for the economy to improve so that hardworking, qualified people have little risk of long term unemployment.