Dad’s value rebounds to over $26,000 – highest ever
DYK 2017 is the best year for dad ever? His “salary” for doing traditional household jobs as a dad is at its highest ever as well as the amount being spent on gifts for Father’s Day.
This year Webb Insurance calculated dad’s worth to be $26,125. The calculations are based on Bureau of Labor Statistics (BLS) wages for household duties traditionally associated with fathers. This calculation does not reflect a full-time stay at home dad nor the salary from his career job.
According to a survey by the National Retail Federation (NRF), in 2017, spending is pegged at $15.5 billion, the highest in the survey’s 15-year history. The average American is now spending $135 on gifts, as opposed to the $126 last year.
Father’s Day job values index
Wage data source: Bureau of Labor Statistics
|Father’s tasks||BLS occupation title||Hours per week||Weeks per year||2017 mean hourly wage||% change compared to 2016||Dad’s 2017 annual earnings|
|Helping with homework||Other teacher/ instructor||10||40||$28.38||10.80%||$11,350|
|Mowing the lawn, landscaping, snow removal||Grounds maintenance worker||2||52||$12.58||6.30%||$1,308|
|Moving furniture||Laborers and freight, stock and material movers||2||3||$14.50||6.00%||$87|
|Car Maintenance||Automotive service technicians and mechanics||2||10||$18.23||0.70%||$365|
|Coaching a team||Athletes, coaches, umpires and related workers||4||10||$21.55||5.40%||$862|
|Scout leader||Recreation and fitness workers||5||10||$16.70||-2.30%||$835|
|Assembly of toys, bookshelves, etc.||Miscellaneous assemblers and fabricators||3||10||$15.63||-1.90%||$469|
|Pest removal (spiders and all gross bugs)||Pest control workers||1||4||$16.23||9.80%||$65|
|Handyman||Maintenance and repair worker, general||8||6||$19.93||3.40%||$956|
|Plumber||Pipe layers, plumbers, pipefitters and steamfitters||2||3||$23.13||7.30%||$139|
Every family is unique and so is dad. In order to calculate a more accurate value for your dad, make a list of the things he does around the house. This will not only help you see and appreciate all the things your dad does for you, but also how much life insurance you should buy. For example, adding other jobs including trash collector, judge and official IT manager of the house would help raise his household “salary” to over $30,000.
|Father’s task||BLS occupation title||Hours per week||Weeks per year||Mean hourly wage||Annual Dad earnings|
|Break up fights, decide who is at fault and give out punishment||Judge||1||50||$39||$1,950|
|Sets up computers, cellphones and helps with issues||Computer and information systems managers||1||45||$43.90||$1,976|
|Collect trash and puts on curb & occasional trips to the dump||Refuse and recyclable material collectors||0.5||52||$14.60||$584|
|Extra job earnings||$4,510|
|Dad’s new total||$30,635|
Think your dad is doing even more? We can help you estimate how much your dad is really worth.
Of course, the real value of dad cannot be measured by the amount of hours coaching or barbequing, but it can be in the number of laughs and hugs given- and that is just worth a gazillion times more than what we estimated.
But knowing how much dad is worth is essential for your family to make sure you are financially secure, if he were to pass away. No one wants to talk about life insurance and no one would ever want to have to use it, but it is important for families to bring it up in conversation, especially for young families. According to Census.gov, there are 24.9 million fathers who are part of a married couple and have children younger than 18.
When determining how much life insurance to purchase, fathers career salaries need to be included, but the little things Dad does for free around the house shouldn’t go unnoticed, as you would need to pay someone else to do it.
According to a LIMRA consumer study, more than half of families without life insurance say they would be in immediate financial trouble if the primary wage-earner passed away. LIMRA also finds that even those who own a life insurance policy may not have enough to keep the family financially secure. It reports that 48% of insured households have a coverage gap of around $200,000. This may be due to families hoping that a group life insurance policy acquired at their workplace is enough, it usually is not.
That is why it is important to make a financial plan that includes enough life insurance coverage for both parents to help the family get through the storm if one or both parents were to pass away. Covering salary is not enough, as household duties also need to be added when they become additional expenses for the family.
Term life or whole life insurance can help pay for funeral costs, outstanding debt, ongoing living expenses and future needs, such as college tuition, all for a fairly nominal cost.
The average cost for a 20-year $250,000 term life insurance policy for a healthy 30-year-old male is around $20 a month. By cutting unnecessary expenses such as going out for lunch, which is about $8-10 each time, you can save up for your life insurance payment and with that give you peace of mind.
“Dad’s value” is based on occupational wages from the Bureau of Labor Statistics and does not include a salary from work outside the home. It is calculated using a list of common household tasks that fathers often perform.