- Family economics studies the advantages of different family models. The two-parent family is regarded to be the standard model because two people can allocate the division of labor for providing and child-rearing according to individual strengths. The cost of a mother's or father's choice to raise children rather than work is regarded as an opportunity cost for raising children with little reliance on others for support. Extended families, such as grandparents, can contribute to child-rearing by providing childcare at an implicit cost (non-monetary) while raising the child within the nurturing environment of the family.
- Economics presupposes that humans are essentially self-interested beings whose pursuit of wealth is the key motivator for all economic activity. The economic study of the family complicates the basic economic presupposition. The motives for pursuing wealth to support a family are complex and intricate. Individual actors tend to show altruism in greater frequency or greater amounts toward members of their own family, particularly those with whom they share a household, without any guarantee of return or gain. However, poverty reduces the amount of altruism displayed within families.
- Much of the economic study on the family pivots around the economic activity of women. When women manage household finances, children are more likely to benefit than when men manage the finances. The benefits to children include increased nutrition and increased opportunities for education. When women take children to work, children perform better on intelligence tests. The en-masse shift to working outside of the home by women in the 20th century also had an enormous economic impact on the family and national economy. In addition, as a woman reaches menopause, her economic activity may turn to providing childcare for grandchildren and influencing survival of the child.
- Economic theory often posits a model consumer or producer. The theories often do not ascertain whether the consumer is male or female, single or married, old or young. Family economics, however, does incorporate these distinctions in analyzing the motivations and consequences of economic activity. The economics of the family assumes that the family, including all of its members, represents the model consumer or producer. Indeed, many families operate businesses that employ members of the family as the key laborers. Families are also major consumers. The drivers of family consumption depend on the members of the household, the number and age of the children and whether the family includes one or two parents.
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