Finance
Survey: Inflation Forces 3 In 4 New Parents To Reevaluate Finances
Many expectant parents are making significant financial adjustments and reevaluating their financial … [+]
Many expectant parents are making significant financial adjustments and reevaluating their financial strategies as inflation impacts the economy. One of their decisions, while providing short-term relief, has far-reaching consequences.
A recent BabyCenter survey found that nearly three out of four expecting parents make considerable financial sacrifices. The most common are postponing debt payments or shelving plans to clear them.
Delaying debt payments can seem like a necessary relief for new parents, but it comes with significant long-term costs. Financial advisor Jonathan Feniak emphasizes the gravity of this decision:
“Postponing debt payments can increase the total amount of interest paid and negatively impact credit scores. This can hinder future borrowing opportunities and reduce financial flexibility—making it challenging to manage unexpected expenses or economic downturns. It can hinder parents’ ability to pursue other financial goals, like saving for a child’s education or investing in a home.”
Consider this simplified scenario: An expecting couple decides to delay their $10,000 debt repayment. Originally, they were on a three-year repayment plan at 7% interest, with monthly payments of approximately $308.77, resulting in total interest payments of about $1,115.72. By postponing payments for a year, they shift to a four-year repayment plan, which includes a year of interest-only payments. This adjustment lowers their monthly payments in the short term but increases their total interest to approximately $1,864.48—an increase of $748.76.
Deferment impacts a family’s long-term financial health and resilience and influences broader economic trends. Families delaying major purchases and reducing discretionary spending can suppress overall consumer spending.
Still, financial adjustments are deeply personal, as shared by working father Anthony Dutcher. “Becoming a dad last year was a whirlwind of excitement and new challenges. We relied heavily on credit cards to cover hospital bills, which led us to debt consolidation loans. Not the most glamorous route, but worth every penny for our healthy and happy baby.”
Working mom Jacquelyn Farnsworth recalls how debt repayment drove her back to work after maternity leave. “I was asked so many times if I was sure that I wanted to go back to work. To me, the question felt like an affront. What choice did I have? We couldn’t pay our bills if I wasn’t working, and now I had medical debt from the birth and a new credit card balance to pay off as well.”
“For me, as well as my wife, the decision to postpone debt payments was driven by the immediate need to cover essential expenses like diapers, baby gear, and those adorable, but sometimes pricey, onesies,” explains working father Nguyen Huy. “Childcare cost was a big factor, too. Looking back, postponing debt payments was a significant sacrifice, but it also taught me valuable lessons in financial management and resilience.”
Whether debt payments are modified or postponed altogether, the choice weighs on family relationships. Financially overstretched families also tend to decrease communication and increase tension, says counselor Shenella Karunaratne. “When partners are both exhausted due to the new baby and also stressed out about money, they often start to talk to each other less. This is the exact opposite of what you should be doing.”
For expecting parents, the first step to adjusting to their new financial reality is reviewing their current budget. Kevin R. Chancellor, a financial advisor, suggests a detailed budget analysis: “Identify necessary adjustments and prioritize spending to maintain a healthy financial baseline.” Strategies such as the ‘snowball’ or ‘avalanche’ methods for debt repayment offer systematic approaches to managing and eventually overcoming debt.
Finance director Adam Horvat also suggests restructuring budgets to accommodate unexpected costs and setting up automated systems to manage savings and debt payments efficiently: “Adopting an envelope budgeting system can help curb overspending on non-essentials, making it easier to allocate funds where they are most needed.”
Certified financial planner Charlie Pastor recommends considering balance transfer credit cards for short-term relief: “These cards can offer an interest-free period, providing breathing room to settle into the new family dynamics without accumulating interest.”
Postponing debt payments can feel like a quick fix for expectant parents needing some financial breathing room, but it’s crucial to think about the bigger picture. While helpful in the short term, these financial shortcuts can impact the broader economy and their personal financial health down the line.
As families work through these tough times, getting expert financial advice and making a solid plan can really make a difference. The aim is to balance immediate financial relief with long-term stability so families can handle today’s financial challenges while building a strong foundation for the future.
Finance
German finance minister wants to scrap spousal tax splitting
Last weekend, several thousand people took to the streets in Munich to demonstrate against abortion and assisted suicide. One speaker made an extremely dramatic plea against what he called the “culture of death” that has allegedly taken hold in Germany. One sign of this, the speaker argued, was that the government is planning to abolish a regulation known as “spousal tax splitting.”
Is tax law really relevant to deep philosophical debates on the sanctity of life? It is even a matter of life and death at all? Surely we needn’t go that far? In any case, the intense political uproar surrounding the new debate on whether to abolish spousal tax splitting is notable, even by today’s standards of populist outrage.
An advantage for couples with widely divergent incomes
The row was sparked by Germany’s vice chancellor and finance minister, Lars Klingbeil, of the center-left Social Democratic Party (SPD), who said he wanted to abolish and replace the joint taxation of spouses’ income, a system that has been in place since 1958.
How exactly does spousal tax splitting work? In Germany, married couples (and since 2013, couples in civil partnerships), can choose to have their income assessed jointly by the tax authorities.
It means that the taxable income for both spouses together is halved – as if both partners had each earned an equal half of the income. Their tax liability is then determined by simply doubling the income tax due on one half.
As people who earn more pay higher taxes in Germany, this system benefits couples where one partner (and often this is still the man) earns significantly more than the other (in practice often the woman).
Costs of up to €25 billion per year
If for example one partner earns €60,000 ($70,512) a year and the other partner earns nothing, the couple will be taxed as if they earned €30,000 each. In this example, the couple would save nearly €5,800 in taxes per year compared to the amount they would owe if both partners filed their taxes separately. According to the Finance Ministry, spousal tax splitting costs the government a total of up to €25 billion annually.
Some critics have long viewed splitting as a tool to keep women out of the labor market, because the more a woman earns, the larger her tax burden becomes. Klingbeil seems to agree, arguing on ARD television in late March that the system was “out of step with the times.” The spousal splitting system reflects “a view of women and families that is completely at odds with my own,” he said.
Chancellor Merz said to be in favor of splitting
On Monday of this week, Klingbeil got some surprising support on this from Johannes Winkel, head of the youth wing of the conservative Christian Democratic Union (CDU).
“Given the demographic reality, the government should create incentives to ensure that both partners in a relationship are employed,” Winkel told the Funke Media Group. “In the future, tax relief should primarily be granted to married couples when they are facing hardships related to raising children.”
But the chancellor is a vocal skeptic of the proposal. “I am not convinced by the claim that joint filing for married couples discourages women from working,” Friedrich Merz said at a conference organized by the Frankfurter Allgemeine Zeitung newspaper. “Marriage is a relationship based on shared income and mutual support. And in a marriage, income must be treated as a joint income for tax purposes, not separately.”
Klingbeil’s alternative plan
At around 74%, the labor force participation rate for women in Germany is one of the highest in Europe, but half of them work part-time.
Klingbeil’s idea is to replace the existing system with a more flexible approach: Both partners would be able to distribute tax-free income among themselves in such a way that it minimizes their tax liability. This would allow the couple to continue enjoying a tax advantage, albeit not to the same extent as before. And whether one partner earns more than the other would become less important.
However, it remains to be seen whether Klingbeil will be able to push through his proposal. Aside from Germany, similar regulations offering tax benefits to couples exist in Poland, Luxembourg, Portugal and France.
This article was originally written in German.
Finance
Departing inspector general targets Council Office of Financial Analysis
The $537,000-a-year office created in 2014 to advise the City Council on financial issues and avoid a repeat of the parking meter fiasco has failed to deliver on that mission, the city’s chief watchdog said Tuesday.
Days before concluding her four-year term, Inspector General Deborah Witzburg said a shortage of both adequate staff and financial information closely held by the mayor’s office prevents the Council’s Office of Financial Analysis from helping the Council be the the “co-equal branch of government” it aspires to be.
In a budget rebellion not seen since “Council Wars” in the 1980s, a majority of alderpersons led by conservative and moderate Democrats rejected Mayor Brandon Johnson’s corporate head tax and approved an alternative budget, including several revenue-generating items the mayor’s office adamantly opposed.
But Witzburg said the renegades would have been in an even better position to challenge Johnson if only their financial analysis office had been “equipped and positioned to do what it’s supposed to do” — provide the Council with “objective, independent financial analysis.”
“We are entering new territory where the City Council is asserting new, independent authority over the budget process. It can’t do that in a meaningful way without its own access to financial analysis,” Witzburg told the Chicago Sun-Times.
Chicago Inspector General Deborah Witzburg’s latest report focuses on the Chicago City Council’s Office of Financial Analysis.
Jim Vondruska/Jim Vondruska/For the Sun-Times
But the Council’s financial analysis office, she added, “has never been equipped or positioned to do what it needs to do. It needs better and more independent access to data, and it needs enough staff to do its job. It has a small number of employees and comparatively limited access to data.”
The inspector general’s farewell audit examined the period from 2015 through 2023. During that time, the financial analysis office budget authorized “either three or four” full-time employees. It now has a staff of five .
Witzburg is recommending a staffing analysis to identify how many people the financial office really needs — and also recommending that the office “get data directly” from other city departments, “ rather than having it go through the mayor’s office.”
The audit further recommends that the office develop “better procedures to meet their reporting requirements” in a timely manner. As it stands now, reports are delivered “sometimes late, sometimes not at all,” the inspector general said.
“We find that those reports have been both not timely and not complete in terms of what they are required to report on and that those reports therefore have provided limited assistance to the City Council in its responsibility to make decisions about the city’s budget,” she said.
The Council Office of Financial Analysis responded to the audit by saying it hopes to add at least three full-time staffers in the short term and has made “some progress” over the last three years in improving their access to data, but not enough.
The office was created in 2014 to provide Council members with expert advice on fiscal issues.
For nearly two years the reform was stuck in the mud over whether former 46th Ward Ald. Helen Shiller had the independence and policy expertise to lead the office.
Shiller ultimately withdrew her name, but the office was a bust nevertheless. In an attempt to breathe new life into it, sponsors pushed through a series of changes.
Instead of allowing the Budget chair alone to request a financial analysis on a proposal impacting the city budget, any alderperson was allowed to make that request.
The office was further required to produce activity reports quarterly, not just annually.
Now former-Budget Chair Pat Dowell (3rd) then chose Kenneth Williams Sr., a former analyst for the office, as director and gave him the “autonomy” the ordinance demanded.
Two years ago, a bizarre standoff developed in the office.
Budget Committee Chair Jason Ervin (28th) was empowered to dump Williams after Williams refused to leave to make way for a director of Ervin’s own choosing.
The standoff began when Williams said he was summoned to Ervin’s office and told the newly appointed Budget chair was “going in a different direction, and I’m putting you on administrative leave” with pay.
“He took all my credentials and access away. I would love to come to work. I wasn’t allowed to come to work,” Williams said then.
Williams collected a paycheck for doing nothing while serving out the final days remainder of a four-year term.
Ervin’s resolution stated the director “may be removed at any time with or without cause by a two-thirds” vote or 34 alderpersons. He chose Janice Oda-Gray, who remains chief administrator.
Finance
Reilly Barnes Returns to Little League® as Purchasing/Finance Assistant
Little League® International has announced that Reilly Barnes accepted a new role as Purchasing/Finance Assistant, effective April 6, 2026. Barnes transitions from a temporary Purchasing Assistant to this full-time position to assist in the year-round demands of purchasing for the organization, as well as the region and Little League Baseball and Softball World Series tournaments.
“We are thrilled to welcome back Reilly to our team as a full-time Purchasing/Finance Assistant. Reilly’s prior experience, time management, and attention to detail make him an invaluable asset to the purchasing team,” said Nancy Grove, Little League Materials Management Director. “We look forward to the positive contributions he will have on our organization.”
In this role, Barnes will be responsible for processing purchase requisitions, coordinating souvenir products, and tracking order fulfillment. He will also assist with evaluating suppliers, reviewing product quality, and negotiating contracts for effective operations.
After most recently working as a Logistician Analyst at Precision Air in Charleston, South Carolina, Barnes, a Williamsport native, returns after honing his skills in the fast-paced environment. Prior to his time at Precision Air, Barnes served as a Procurement Specialist at The Medical University of South Carolina, where his expertise and knowledge were instrumental in supporting both education and healthcare needs.
“I am thrilled to return to Little League in this full-time role,” said Barnes. “Coming back to my hometown and having the opportunity to work for an organization that has played such a special part of my upbringing means a lot. I can’t wait begin this new opportunity.”
Barnes graduated from the University of Pittsburgh in 2022 with a B.A. in Supply Chain Management, Finance, and Business Analytics.
-
Health30 seconds agoRed hair may be increasing as study points to surprising evolution trend
-
Sports7 minutes agoTrump envoy asks FIFA to replace Iran with Italy in 2026 World Cup: report
-
Technology13 minutes agoBooking.com data breach exposes traveler data to scams
-
Business18 minutes agoAngry Altadena residents ask officials to halt Edison’s undergrounding work
-
Entertainment24 minutes ago‘Clayface’ trailer teases DC Studios’ first proper horror movie
-
Lifestyle30 minutes agoShe built a following of plus-size customers. Why is she closing her L.A. resale shop?
-
Politics37 minutes agoAs primary election nears, top candidates for California governor debate tonight
-
Science42 minutes ago44% of Americans breathe dangerously polluted air. In California, it’s 82%