© 2008 the mcgraw-hill companies, inc. all rights reserved. diversity and financial style...
Post on 19-Jan-2016
212 Views
Preview:
TRANSCRIPT
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Diversity and Financial Style
Difference between low-income vs middle-income vs higher-income spending practicesCollective Individualist
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Stresses of Family Finances
Financial issues #1 stressor across life cycle Good financial management associated with
happier marriages Wealth and happiness are unrelated:
As money increases—expectations increase Comparison not based on possessions but of those
who have the most Money distracts from other aspects of life
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Financial Management Concerns
Major stressor for individuals and families
Garman 2002 study:1/3 of workers report financial stress high to
the extremehampers job performance53% dissatisfaction with personal financial
situation54% worry about personal debt
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Top Five Financial Management Issues for Married Couples
Issue Percentage with Issue
Wish partner more careful spending money
72 %
Having trouble saving money 72 %
Problems deciding what is more important to purchase
66 %
Major debts are a problem 56 %
Partner tries to control the money
51 %
Source: Adapted from Olson, Fye & Olson, 1999n=21,501 couples
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Coping with Financial Stress
Financial stress associated with family stress and conflict
Most difficult periods of family life cycle financially: Child bearing stage Adolescent stage—peak stress period Launching stage Retirement stage
Coping resources and behaviors influential
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Why Do Finances Cause Problems?
Money taboo topic of discussionNo budget or adherence to budgetOverspend or reliance on creditStyles of spending and savingUse of money as tool to gain power and
controlConflicts over meaning of money
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Meaning of Money
StatusSource of power—means of keeping ahead
SecurityConservative in spending—focus on saving
EnjoymentSatisfaction draw from spending for self and
othersControl
Means of control over life and maintaining independence
Around & Pauker, 1987
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Life Time Earnings by Degree
0
500,000
1,000,000
1,500,000
2,000,000
2,500,0003,000,000
3,500,000
4,000,000
4,500,000
H.S. Diploma
Bachelors Degree
Masters Degree
Doctorate
Professional Degree
top related