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Margaret "Peg"/"Peggy" Bundy, née Wanker (Katey Sagal), is Al's lazy, self-indulgent wife. She refuses to work, cook, or clean the house (although Peg occasionally displays an ability for domestic aptitude). She cites her laziness as family tradition, getting upset with Kelly when she gets a job. She claims that Wanker women never work, and in old pioneer days, "Wanker women were getting their hair done while Wanker men got theirs scalped." During the day, she likes to watch daytime talk-shows, sit on the living room couch, and eat copious amounts of ice-cream BonBons (only gaining weight in her voluptuous breasts). Peg is a redhead with a bouffant hairdo, and she usually wears combinations of modern-day 1980/1990s and dated 1960s-styled fashions with skin tight Spandex pants and shirts, and stiletto heels, which make her walk in a unique way. Peg smokes cigarettes. Her favorite TV shows are Oprah and Donahue, but she also enjoys watching the Shop at Home Network. Peg continually squanders what little money her husband, Al makes on extravagant spending sprees, including everything from expensive clothes to useless trinkets, and even steals from her children to get extra cash.
Peg and Al married in 1971. She says she married Al on a dare, although this may have been just a sarcastic comment. She did not actually graduate from high school, failing to meet a half-credit in home economics. She later returned to school, earning her diploma, but only by stealing her daughter, Kelly's final exam and tricking her into going to summer school.
Her birth family, the Wankers, hail from the fictitious rural Wanker County, Wisconsin, where "as Einstein put it, everyone's relative." At Peg and Al's high school reunion, her rival greeted her with "Peggy... Peggy Wanker... don't bother to thank her." It is never made clear how she managed to go to high school in Chicago with Al when her parents apparently never left Wanker County.
Unlike Al, Peg greatly desires marital sex despite constantly complaining about Al's lack of endurance and Al's general antipathy towards sex with her. She does not seem to mind her husband ogling other women, reading pornographic magazines, or going to strip joints. Her enthusiasm has caused some of the male strip joints she visits to establish the "Bundy rule," where women can no longer go into the back rooms to meet the dancers, nor is the establishment responsible for anything lost down a dancers costume.
She has an insatiable need to have sex and masturbates often when she is home alone, instead of cleaning and cooking. She often calls repair men to come 'fix' things in her house, only to seduce them and fuck them.