Tag Archives: parents

How young homebuyers say they will come up with a down payment

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Earlier this year, Redfin research looked at how younger adults will find the money to purchase a home:

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More than one-third (36%) of Gen Zers and millennials who plan to buy a home soon expect to receive a cash gift from family to help fund their down payment…

Young homebuyers are also receiving help from family members in other ways. Roughly one in six (16%) Gen Zers and millennials say they’ll use an inheritance to help fund their down payment, and 13% plan to live with their parents or other family members.

Working to earn money is the most common way for young buyers to fund down payments: 60% report they’ll save directly from paychecks, and 39% are likely to work a second job, the most common responses to this question…

Just 18% of millennials used a cash gift from family to help fund their down payment in 2019, according to a Redfin survey from that time, and the share had only increased to 23% by 2023. Note that the 2019 and 2023 survey results noted here are for millennials only, while the 2024 results in this report are for millennials combined with Gen Zers. 

This is one way that wealth is passed from one generation to another. As the parents have resources (including possibly through the increase in value of their own residence), they can pass them along to their children at key moments to improve their prospects. And if parents do not have these resources, it would then take longer to amass a down payment.

One twist here is the suggestion that more parents are providing funds for down payments than in the past. The comparison is between 2019 and 2024. Were the numbers ever higher at some point in the past or perhaps higher among certain segments of the population?

What would it take for third parties to get in on this? Imagine a lending company says we will provide a large percentage of the down payment and you then owe us X amount of dollars when you sell the home at fair market value. I remember receiving some solicitations in the mail with a similar scheme for home equity loans; why not for down payments with bigger returns for the investors down the road?

Religious parents, congregations, and passing on faith

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Sociologists Christian Smith and Amy Adamczyk have a new book where they look at parents and passing down religion to children. In an interview, here is how Smith describes some of the findings:

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The other big surprise was parents’ views of their religious congregations. The common story is that laypeople just want to dump their kids off at church and have religion taken care of by youth ministers. But we found parents just want church to be friendly and a good environment, but they think it’s their job to take care of religious things. That seemed to be kind of a mismatch in how clergy and youth ministers think about parental involvement and the way parents described that involvement…

In the book, you say that a central part of your argument is that what religion is has fundamentally changed from a “communal solidarity project” to a “personal identity accessory.” Can you elaborate briefly on what that means?

This is my historical interpretation of our findings, trying to make the best theoretical sense I can of what’s going on. The idea of a communal solidarity project is that in a former time in American history, religion would have been much more of a collective, community-based experience. It would have been something people shared in common and that had much more of a social dynamic to it. The parents wouldn’t have had so much burden to promote religion because it would’ve just been living in the community. Over time, that world has dissolved…

And you raised the question of mismatch earlier, but I would say this is the real mismatch. Not so much strategy differences between parents and youth ministers, but what church is for. I think some of the main actors that are gathered in congregations have very different ideas of what they’re even doing there. What’s fascinating, sociologically, is how they can continue that mismatch for years and not really figure out the differences between each other—like not really have it dawn on them, “Oh, we have totally different realities going on here.”

These are big picture issues regarding religion in the United States: what is the role or place for parents even alongside the common idea that children should be able to make their own choices? What are religious congregations about: places of religious community and solidarity or places for individual consumers to take what they can get? How do parents and churches interact when their goals might be similar but their means and/or expectations differ?

One notable feature in the books Smith and his colleagues have written about the faith of teenagers and emerging adults is how these patterns among younger adults help shed light on broader patterns in American society. What teenagers take in and how they act does not come out of nowhere. They may be exacerbating existing trends or remixing elements of culture, but they are building on what is already happening with adults, institutions, families, and others.

New study: “How Well-Intentioned White Families Can Perpetuate Racism”

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A new sociology study followed 36 white ten to thirteen year olds to see how they approached race. Sociologist Margaret Hagerman describes her findings in an interview:

I use the phrase bundled choices because it seemed to me that there were some pretty striking patterns that emerged with these families in terms of how they set up their children’s lives. For example, I talk in the book about how choosing a neighborhood leads to a whole bunch of other choices—about schools, about the other people in the neighborhood. Decisions about who to carpool with, decisions about which soccer team to be on—you want to be on the same one as all your friends, and all these aspects of the kid’s life are connected to the parents’ choices about where to live.

I’m trying to show in the book that kids are growing up in these social environments that their parents shape. They’re having interactions with other people in these environments, and that’s, I think, where they’re developing their own ideas about race and privilege and inequality…

In my book, I’m trying to highlight this tension between the broad, overarching social structures that organize all of our lives and the individual choices that people make from within these structures. So yeah, if we had equal educational opportunities, people would not be able to make choices that would confer advantages to their child over someone else’s child, right? That wouldn’t even be a possibility. Certainly, the structural level really matters.

But the best answer I can really give is that the micro level potentially could shape what goes on at the institutional or structural level. I really think—and this might sound kind of crazy—that white parents, and parents in general, need to understand that all children are worthy of their consideration. This idea that your own child is the most important thing—that’s something we could try to rethink. When affluent white parents are making these decisions about parenting, they could consider in some way at least how their decisions will affect not only their kid, but other kids. This might mean a parent votes for policies that would lead to the best possible outcome for as many kids as possible, but might be less advantageous for their own child. My overall point is that in this moment when being a good citizen conflicts with being a good parent, I think that most white parents choose to be good parents, when, sometimes at the very least, they should choose to be good citizens.

Based on the interview, this sounds pretty consistent with existing research. Families with economic means will often choose good things for their children while either thinking little of the consequences for others or rationalizing their choices as being a good parent for putting their children first. This sounds like much of suburbia that emphasizes helping your children get ahead or the idea of “dream hoarders.”

This also sounds like Thomas Schelling’s work about how preferences for certain kinds of neighbors can aggregate to larger patterns of residential segregation. If everyone is just looking out for their own children, then larger structures develop.

These findings suggest Americans have limited understandings of how to address the public good. Many such decisions seem to be binary: pursue what is good for your family versus what might be good for everyone. What about options that could be good for everyone in the long run? Does it always have to be a zero-sum game?

 

A need to better measure financial support and wealth passed to Millennials

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A look at how race affects the financial support given by parents to Millennials includes this bit about measurement:

Shapiro said the numbers of Millennials receiving support from family are “absolutely underestimated” because many survey questions are not as methodical and specific as those a sociologist might ask. “As much as 90 percent of what you’ll hear isn’t picked up in the survey,” he said.

Shapiro’s more careful research found this:

Shapiro’s work pays special attention to the role of intergenerational family support in wealth building. He coined the term “transformative assets” to refer to any money acquired through family that facilitates social mobility beyond what one’s current income level would allow for. And it’s not that parents and other family members are exceptionally altruistic, either. “It’s how we all operate,” Shapiro said. “Resources tend to flow to people who are more needy.”

Racial disparity in transformative assets became especially striking to Shapiro during interviews with middle-class black Americans. “They almost always talk about financial help they give family members. People come to them,” Shapiro said. But when he asked white interviewees if they were lending financial support to family members, he said, “I almost always get laughter. They’re still getting subsidized.”…

To many Millennials, the small influxes of cash from parents are a lifeline, a financial relief they’re hard pressed to find elsewhere. To researchers, however, it’s both a symptom and an exacerbating factor of wealth inequality. In a 2004 CommonWealth magazine interview, Shapiro explained that gifts like this are “often not a lot of money, but it’s really important money. It’s a kind of money that allows families to obtain something for themselves and for their children that they couldn’t do on their own.”

Two quick thoughts:

  1. Americans tend not to like to talk about passing down wealth but decades of sociological research (as well as research from others) shows that it happens frequently and is quite advantageous for those who have wealth passed to them. I recommend looking at Shapiro and Oliver’s book Black Wealth/White Wealth.
  2. Polls like those cited here from USA Today could lead to lots of problems just because the measurement is not great. Why not ask better poll questions in the first place? I understand there are likely limits to how many questions can be asked (it is costly to ask more and longer questions) but I’d rather have sociologists and other social scientists handling this rather than the media.

Patterns in college major by parent’s income

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College students with parents with higher incomes study different subjects:

Once financial concerns have been covered by their parents, children have more latitude to study less pragmatic things in school. Kim Weeden, a sociologist at Cornell, looked at National Center for Education Statistics data for me after I asked her about this phenomenon, and her analysis revealed that, yes, the amount of money a college student’s parents make does correlate with what that person studies. Kids from lower-income families tend toward “useful” majors, such as computer science, math, and physics. Those whose parents make more money flock to history, English, and performing arts.

http://www.theatlantic.com/business/archive/2015/07/college-major-rich-families-liberal-arts/397439/
The explanation is fairly intuitive. “It’s … consistent with the claim that kids from higher-earning families can afford to choose less vocational or instrumental majors, because they have more of a buffer against the risk of un- or under-employment,” Weeden says. With average earnings for different types of degrees as well-publicized as they are—the difference in lifetime earnings among majors can be more than $3 million, one widely covered study found—it’s not hard to imagine a student deciding his or her academic path based on its expected payout. And it’s especially not hard to imagine poorer kids making this calculation out of necessity, while richer kids forgo that means-to-an-end thinking.

Another trend expressed in the data, Weeden notes, is that lower-income families and higher-income families tend to send their children to schools with different options for majors: Most of the priciest, top-tier schools don’t offer Law Enforcement as a major, for instance. There is also the possibility that children from higher-income families were more exposed to the sorts of art, music, and literature that colleges deem worthy of study, an exposure that might inspire them to pursue those subjects when they get to college…

From this angle, college majors and occupations start to look more and more like easily-interpreted, if slightly crude, badges doled out to people based on the wealth and educational levels of the parents they were born to. There’s a reason that the first question asked at parties is often “So, what do you do?” “If we tend to avoid asking acquaintances about their income,” four prominent sociologists wrote in the 2011 anthology The Inequality Reader, “it’s not just because doing so is viewed as too intrusive and personal but also because we suspect that querying about occupation will yield more in the way of useful information.”

Four quick thoughts:

1. Of course, what majors actually lead to what jobs is not as clear as people might make it out to be. Just because someone has a particular major doesn’t mean that is where they will be working in 10 or 20 years. At the same time, some majors might lend themselves to particular jobs right after college.

2. Outside of an associate’s degree, the majors with the lowest parent incomes (top of the chart) are helping professions. This might indicate a bigger interest in wanting to work with people or directly give back to the community. Reading uncharitably, do the majors with higher parent incomes lend themselves to a certain distance from people?

3. It is interesting that sociology, political science, and anthropology are higher up on the list of parent’s incomes. Students sometimes seem to suggest that these are luxury subjects – interesting perhaps (if they don’t think it is just common sense) but too difficult for finding a career.

4. This would all make sense in Bourdieu’s ideas about social class. Those with less economic capital tend to favor more functional items while those with more capital lean toward the abstract. Why should college major be exempt from the powerful organizing forces of social class?

Sociologist on difficulties ahead for parents of killers

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Sociologist Katherine Newman has studied mass shootings and has these thoughts about how the parents of the perpetrators can live the rest of their lives:

How then do parents contend with their own grief, the loss of their son, while coming to terms with who he really was and what he did to the innocent? The answer is that they never do. They are not allowed to by a public that looks for someone to blame. They are expected to express contrition, to open their most private experience to scrutiny and they do so willingly in the hope that this will somehow make amends for what they didn’t prevent from happening.

These questions are searing enough for the parents of high school shooters. They are undoubtedly worse for the Rodger family, for questions will be raised about why they didn’t keep a tighter leash on a young man with such a long history of emotional problems and psychiatric treatment. But it is precisely his age that made such surveillance problematic. No doubt they were trying to let their 22-year-old learn how to function in adult society, and that requires some degree of autonomy. The same was true for the Virginia Tech shooter…

The circle of people who come in for scrutiny and deserve sympathy widens at first but then contracts over time, and no small amount of friction emerges in the wake of such a devastating loss.

Richard Martinez, the father of Christopher who died in the Isla Vista attack, is to be applauded for reaching out to Rodger’s father. “He lost his son. I lost my son – we have that in common,” he said.

Given the importance placed on parenting in American society, particularly among the concerted cultivation crowd, the social sins of children can live on for a long time.

Kids today: “emotionally priceless and economically worthless”

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Sociologist Dalton Conley talks about how the role of children has changed in recent centuries:

A child born in 2012 will cost his parents $241,080 in 2012 dollars, on average, over his lifetime. And children of higher-earning families drain the bank account more: Families earning more than $105,000 annually can expect to spend $399,780 per child.

The “price tag” is astounding, considering that until not long ago, kids were expected to contribute to the household and were not generally a financial drain on it. “From a young age, for much of human history, they would do household labor, whether gather berries or get water and bring it back. From ages 5 and up, kids had an economic role to play in the household,” says Dalton Conley, sociologist, NYU professor and author of “Parentology: Everything You Wanted to Know About the Science of Raising Children But Were Too Exhausted to Ask.”

“Today, as sociologist Viviana Zelizer says, kids are emotionally priceless and economically worthless. They’re just a big sinkhole of our time, attention and money, and yet at the same time, we think of them as our most important life project,” says Conley. This idea that parents must invest in their kids for years is now even codified into law. For instance, while traditional markers of adulthood were set at 18 or 21, the Affordable Care Act has now extended the age limit for children to be on their parents’ health insurance to 26.

Why the shift? It boils down to the fact the economy now requires more technical knowledge, so children need more education than before.

The rest of the article then goes on to describe how Dalton uses data to tackle 10 important parenting issues. But, this early part highlights the changing nature of childhood, from an age where children could contribute economically to the family (and many children did not survive because of poor health) to an era where wealthier families have fewer children and parents pour hundreds of thousands of dollars into each child.

“Who had richer parents, doctors or artists?”

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NPR looks at how the jobs and incomes of parents influence the same outcomes among their children:

After some poking around, we figured out how to settle the argument. It allowed us to look at the same group of people in 1979 and 2010 — from a time when most were teenagers to the time when they were middle-aged and, for the most part, gainfully employed…

Who's doing better than their parents?

Based on this chart, it looks like the jobs of parents that are linked to better outcomes for their children require more education and are higher-skilled. This would seem to line up with findings from the Pew Economic Mobility Project about what traits are linked to upward social mobility:

This research reveals:

  • College graduates were over 5 times more likely to leave the bottom rung than non-college graduates.
  • Dual-earner families were over 3 times more likely to leave the bottom rung than single-earner families.
  • Whites were 2 times more likely to leave the bottom rung than blacks.

Additionally, Pew’s analysis examined the intersection between income and wealth, and found that the health of family balance sheets—including accumulated savings and wealth—are related to income mobility prospects. Households with financial capital, such as liquid savings or other readily available assets such as stocks, were more likely to leave the bottom of the economic ladder. In other words, movement up the income and wealth ladders was connected, and economically secure families were also the most likely to be upwardly mobile.

So in addition to parental education and the type of job one’s parent has, going to college, having two-income families, race, and wealth matter quite a bit. Overcoming these factors is not necessarily easy: “In fact, 43 percent of Americans raised at the bottom of the income ladder remain stuck there as adults, and 70 percent never even make it to the middle.”

Commercials that market smartphones as education devices shouldn’t fool many

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In the past few months, I’ve heard several commercials for smartphones that suggest kids can and will use them for educational purposes. When your child needs help on their homework, they can whip out their phone and find the answer.

Who do they think they are fooling? While parents want to hear about helping their kids succeed in school (this is an American constant over the decades), these commercials offer implausible possibilities. Kids could use their phone for homework or studying. But, I suspect the smartphone is used for two other tasks that will far outweigh educational purposes: social interaction (texting, chatting, Facebook, etc.) and media consumption (music, YouTube, TV and movies, etc.). The real education provided here might be in how to be a media-saturated, 21st century American kid.

This may be effective marketing but it also hints at another issue: the idea that new technological devices automatically lead to more learning. Where is the evidence for this? We can argue that kids needs to keep up with technology to understand and use it for their good like applying for jobs. We can argue the new technology engages kids. We can argue the technology can open up new opportunities like forming and maintaining beneficial relationships or learning how to code. But, suggesting it actually leads to more learning is a more difficult case to make.

My conclusion: such commercials play off the interests of parents who would say they want to help their kids succeed without marshalling much evidence that the new smartphone will help kids learn.

Moms really like libraries

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A new report from the Pew Internet & American Life Project suggests moms use and support libraries at much higher levels than the general population:

“Mothers are outliers in their enthusiasm for libraries and their use of libraries for their own purposes, like visiting the library, checking out books, using library websites and connecting to libraries with mobile devices,” concludes a report by the Pew Research Center’s Internet & American Life Project, which Rainie directs.

It turns out that 94 percent of mothers surveyed contend that libraries are important to the community, 82 percent have library cards and 73 percent of them visit the library, compared with 53 percent of the overall population. More than half of mothers surveyed visit library websites, and nearly half use computers at the public library, the Pew research reports.

Pew’s research is part of an ongoing project to study libraries and their patrons in the digital age. Those most recent figures, gleaned from a survey of 2,252 Americans ages 16 and above, are encouraging but hardly a call to stop the presses, until one considers what is driving those numbers.

Here is more from the full report:

The importance parents assign to reading and access to knowledge shapes their enthusiasm for libraries and their programs:

  • 94% of parents say libraries are important for their children and 79% describe libraries as “very important.” That is especially true of parents of young children (those under 6), some 84% of whom describe libraries as very important.
  • 84% of these parents who say libraries are important say a major reason they want their children to have access to libraries is that libraries help inculcate their children’s love of reading and books.
  • 81% say a major reason libraries are important is that libraries provide their children with information and resources not available at home.
  • 71% also say a major reason libraries are important is that libraries are a safe place for children.

Almost every parent (97%) says it is important for libraries to offer programs and classes for children and teens.

What American parent wouldn’t like the idea of a place that can help their kids get ahead? There is a section later in the report that notes people with incomes under $50,000 say the library is more important.

These findings lead to several other questions:

1. Why are fathers behind in seeing the value in libraries? Is this because mothers still tend to have primary childcare responsibilities?

2. If mothers (and fathers) are likely to see the value of libraries, this also suggests there are large segments of the population who don’t use library or see much value in it. Who exactly are these people and why do they have these views?

3. While there is plenty of research about the achievement gap in education, how much do libraries help close this gap?