Question

Margaret and Linda met during their junior year in college at a respected public university in Minnesota. Margaret is black and came from a lower-middle-class family. Linda is white and came from an upper-middle-class family. While Margaret's family wasable to help support her while she was in school, she still had to take out some student loans to cover her expenses. Linda's family had saved a considerable amount of money for her college expenses and she graduated with no debt. After college, they both found jobs and made roughly the same income. Linda was able to purchase a car right away because she had money left over, while Margaret took the bus until she was able to save enough money for a down payment on a car. Based on statistical information, who is likely to end up with more wealth, and what would explain the difference?

Answer 1

Answer:Linda is likely to accumulate more wealth because of the high socioeconomic status of her family , which means she is likely to continue receiving constant financial support from her family.

Explanation:

Margaret is likely to be expected to help her family financially which may increase her financial responsibilities and affect how she saves her money.

Her family is likely to count on her now that she has found a good job and may even be expected to send one or more of her siblings to college.

Linda only has herself to worry about since her family is well off and they had planned well ahead for her not to accumulate any debts. She will have enough to spend on herself and even save some. She is also likely to inherit even more wealth from her family which is well off.