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Work, Family, and Finances

More than half (61%) of American families with children have both parents working outside the home.

That means they shoulder multiple responsibilities at home and at work. And with the sharp rise in remote working, both these activities could be taking place at home. There are benefits like cutting commute time and more opportunities to be with the family.

Working from home can, however, also be a disadvantage as there are distractions and demands from the family who see you as available during the day.  Or your boss doesn’t observe a work schedule and expects you to be available at all hours.

Remote working can also have a financial impact on a family. Working at the office can cost twice as much as remote working.  Employees who go into the office at least part-time, spend an average of $863 per month in work-related expenses. Employees working full-time remote jobs averaged less than half that amount, spending $423 per month on the internet, phone, meals, utilities, and other expenses. That's a difference of $440 per month or $5,280 over the course of a year.

Work and financial security

Families depend on the income from their parents for their financial survival. If one parent dies, you lose a significant portion of that income.  When only one parent works it’s even more of a problem, as that was the sole source of income for that family. The family could be in a serious situation unless provision has been made to take care of their survival.

One of the best ways to feel financially secure is to have a life insurance policy that can replace that lost income. Among insureds with financial dependents, 68 percent feel secure, compared with 47 percent of non-insureds. Consumers with overlapping sources of coverage have the highest likelihood of feeling secure. 

A common rule used to figure out how much life insurance you need is to multiply your annual salary by ten.  The best way to find out how much life insurance you need is to add up the financial obligations you want to cover (such as income replacement, or a mortgage) and then subtract assets that could be used by your family (such as savings or existing life insurance).

There is still a substantial gender gap in life insurance ownership although the percentage of insured women has increased. Just 46% of women report owning life insurance, compared with 53% of men, according to the 2022 Insurance Barometer Study.

“There are many ways to calculate how much life insurance you need,” says Robert Cavanaugh, Senior Vice President, Investments, for David Lerner Associates. “Talk to your financial advisor and get professional advice on the best way to protect your family into the future.”


Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC

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