Week Ten Blog Entry: A Tale of Two Families

In reading the parallel stories of Byron and May in “A Tale of Two Families,” I find myself relating more closely with Max’s experience. My parents benefitted from stable jobs, homes increasing in value in nice neighborhoods, and the financial stability of their own parents. I am now benefitting from the advantaged starting point my parents gave to me. And I hope to one day give my potential children a leg up in life by starting from an even higher point.

I liken this to saving for retirement, with the advantages compounding on one another. If you start investing in your 401k early on, the money continues to compound, adding up to a very large lump sum at the end. But if you start investing late, no matter how much you put in, it will not have the chance to compound and you will end up with something, but not as much as it could have been.
Just like the 401k account, Max’s advantages in life compounded, one on top of the other, and led him to the wealth he has now. Byron and his family made some solid investments into their future, but it took them more time to do so, therefore, decreasing the amount of wealth he holds now.

These two stories have opened my eyes to see how my economic position in life is directly related to the path of my ancestors. Although my parents worked incredibly hard for everything they have, they were given the advantage of beginning their journey without debt and without having to step in financially for their parents and other family members. They were able to put the entire amount of money they worked for into their future. And they benefitted from real estate in stable and more affluent communities. Perhaps if my life were more similar to Byron’s, I would be contributing part of my paycheck to helping out my family. Perhaps, I would not be able to afford myself that nice suit which got me a new job. And perhaps I would not even live in the community that was close enough to get to that new, high paying job. I’ve seen how life advantages add up, and if you are not given any advantages, it is incredibly hard to be competitive with the rest of the community.