This report describes the current status of families headed by persons under age 30, and compares the economic well-being of the current generation of young families in 1986 with that of the preceding generation in 1973. An analysis of the widening gaps between young families with and without children, between young families headed by persons with the least and most education, and between younger and older families is also included. Chapter 1 provides an overview of the problems that young families face and recommendations for how to improve their situations. Chapter 2 provides a profile of young families. Chapter 3, "The Growing Economic Plight of Young Families," covers the following topics: (1) "Earnings of Heads of Young Families"; (2) "The Incomes of Young Families"; (3)"Income Distribution among Young Families"; and (4) "Poverty among Young Families." Chapter 4, "Special Analyses for Selected Groups of Young Families," covers the following topics: (1) "Young Families by Race/Ethnic Group"; (2) "Family Structure: Married Couples and Single Parents"; (3) "Very Young Families"; and (4) "Young Families That Don't Live on Their Own." Chapter 5, "Some Consequences of Falling Earnings and Inadequate Incomes Among Young Families," covers the following topics: (1) "Home Ownership and Rental Costs"; and (2) "Health Insurance and Health Care." Chapter 6 provides regional data on young families' income levels. Thirty-three tables and 22 figures are included. Notes on the data in this report are included. (JS)