||The Swedish form of the welfare state has a long history and is known especially for its generous social policy financed mainly from exceptionally high tax levies. At the beginning the Bachelor Thesis Family economics in Sweden shows the general relation between family and economics, and then it focuses on family policy in Sweden and puts it into the context of the development and the present form of the welfare state. It also explores the important sub-components of the Swedish system, which affect family policy and other family trends. The work among other things illustrates how high fertility combined with high rates of labour market participation and knowledge-based economy can be supported in Europe. At the same time, however, it stresses that the differences in social policy in various European countries are caused by many cultural, social and economic factors, and therefore their mutual comparison and unification is limited. Yet, while considering new reforms, we can at least learn from experience of other countries or take them as an example. This thesis also highlights the disadvantages of the Swedish model.