1 / 8

Diversity and Financial Style

Diversity and Financial Style. Difference between low-income vs middle-income vs higher-income spending practices Collective Individualist. Stresses of Family Finances. Financial issues #1 stressor across life cycle Good financial management associated with happier marriages

shiloh
Download Presentation

Diversity and Financial Style

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Diversity and Financial Style • Difference between low-income vs middle-income vs higher-income spending practices • Collective • Individualist

  2. 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

  3. Financial Management Concerns • Major stressor for individuals and families • Garman 2002 study: • 1/3 of workers report financial stress high to the extreme • hampers job performance • 53% dissatisfaction with personal financial situation • 54% worry about personal debt

  4. Top Five Financial Management Issues for Married Couples Source: Adapted from Olson, Fye & Olson, 1999 n=21,501 couples

  5. 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

  6. Why Do Finances Cause Problems? • Money taboo topic of discussion • No budget or adherence to budget • Overspend or reliance on credit • Styles of spending and saving • Use of money as tool to gain power and control • Conflicts over meaning of money

  7. Meaning of Money • Status • Source of power—means of keeping ahead • Security • Conservative in spending—focus on saving • Enjoyment • Satisfaction draw from spending for self and others • Control • Means of control over life and maintaining independence Around & Pauker, 1987

  8. Life Time Earnings by Degree

More Related