 The information provided in The Two-Income Trap is important to me because it can help me develop a plan to avoid downfall. This book opened my mind to new ideas since it was written by people who have done research and are able to back-up their information with facts and statistics. Reading this book has really been an eye-opener because it informed me of where the real problem causing bankruptcy in two-income families truly lies.

 I agree with the content of this book because it provides factual information and statistics to support the thesis as the authors compare one- income families in past generations to our ordinary two-income families today. I am a part of a two-income family and personally know many others who could not possibly afford the loss of the second paycheck. It is no longer used as an emergency back-up as it was in past generations. Two-income families now depend on both paychecks and have less money left over due to more expenses such as day care, and a second car.

 The author states how over-consumption is not the main reason why bankruptcy rates have increased, and explains how the misuse of the mother’s paycheck is what is causing families to go broke. The mother’s paycheck is now used for mortgage payments, car payments, insurance payments and school tuition instead of saving or investing it as it should be. Two-income families depend on the mother’s paycheck and lack a financial safety net. If a financial disaster was to occur such as an illness or layoff, they may have to face bankruptcy. The author believes school vouchers to be a solution as well as regulating loans so families who cannot afford it, won’t qualify.

 Two-income families are at higher risk of bankruptcy due to their lack of a safety net.  Parents are now spending more on homes to provide a good education for their children.  One in seven middle-class families with children will be bankrupt by the end of the decade.