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Marriage and Finance
Abstract
This chapter reviews interdisciplinary research concerning the association between marriage and personal finances. The first
section of the chapter discusses financial practices within marriage and the financial differences between married couples
and other family types. The second section reviews the research on the ability of financial factors to predict marital formation,
satisfaction/conflict, and dissolution. The chapter also suggests future research avenues.
... Communicating about these financial matters is, however, often a stumbling block for young married couples and they sometimes find to argue with their spouse in order to explain their viewpoint on finances is an easier way out (Shapiro 2007). Dew (2008) found that the more income the wife contributes to the household, the more she communicates with her husband concerning the household finances. On the other hand, when both spouses have jobs they both feel they should have control over the household money, which could cause domestic financial problems. ...
... The absence of financial management skills can contribute to the frequency of financial arguments between spouses due to different financial management practices (Kerkmann et al. 2000). The irresponsible spending patterns of a spouse, conflicting attitudes and behaviors towards finances are all financial issues that result in arguments (Amato and Previti 2003;Dew 2008). Couples paying bills late also tend to argue more often than those couples who pay on time and the longer couples are married, the more knowledgeable they become of their finances through years of experience and communication, and the frequency of arguments then tend to decrease (Waseem 2004). ...
... Research done by Britt and Huston (2012) supports this finding as it stated that one of the most general financial issues spouses argue about is debt brought into the marriage. Other factors, such as a lack of financial management skills and a partner's reckless spending, can also contribute to financial arguments in a marriage (Dew 2008;Kerkmann et al. 2000). ...
Finances are regarded as one of many argument matters between spouses, which in turn can cause financial stress. This article investigated the relationship between spousal communication, financial arguments and financial stress matters within a marriage. Questionnaires were distributed to 300 young married couples of which 75 couples responded with respect of their level of communication, occurrence of arguments and level s of stress regarding their finances. Results indicated that spousal communication influences the frequency of a rguments between spouses regarding their finances, indicating a definite lack in communication about money. High financial stress levels also contribute to the increase of financial arguments. An increase in spousal communi cation about finances can lead to less stress about finances and thus will result in fewer arguments about finances. Identification of patterns of communication regarding financial matters could contribute to improving financial communication in young married couples.
... Marital studies that combine marriage and finances often merge specific financial decisions into such topics as debt or job loss. These studies most commonly examine the relationship between finances and marital strain (Cutrona et al., 2003; Conger et al., 1999; Dew, 2008; Kinnunen & Feldt, 2004; Krokoff, 1991; Marks et al., 2006). Research has shown that financial strain is an essential component of a couple " s overall financial satisfaction that contributes to marital stability (Gudmunson et al., 2007). ...
... One study found that difficult economic circumstances, through the strain and distress caused, were negatively reflected in marital adjustment (Kinnunen & Feldt, 2004). While there are many factors that can cause strain on a marriage, economic pressure in its many forms was shown to increase hostility in marriage (Dew, 2008). In fact, the high frequency of marital conflicts over money concerns has led to frequent reports in the media that money problems are the number one cause of divorce (Stanley et al., 2002). ...
... Many of the things that were true for this sample of African American couples in strong marriages were related to the research on the general population. The following findings will be addressed in this section: economic strain, education and income levels, materialism, and spending, negatively related to marital satisfaction (Conger et al., 1999; Dew, 2008; Kinnunen & Feldt, 2004). Although this study did not measure marital satisfaction, the majority of these participants with great marriages (64 of 74 participants) indicated that financial struggles created stress for their marriages. ...
This study focused on how African American couples in happy marriages talked about finances in their couple relationships. Qualitative methodology was used for this study, and the data came from transcribed interviews with participants. Thirty-seven couples who identified their marriages as being strong, happy, or highly satisfying, volunteered to be interviewed for this study. All individual participants (74 total) talked about finances in their marriages, and all interviews were used for the purpose of this study. Their descriptions were coded and analyzed to explore the way that they talked about money issues in their marriages. The research questions focused on how couples talked about financial stress and how they talked about financial decisions in their relationships. An unanticipated finding was how they talked about transcending finances in their marriages. The findings can contribute to future research and financial education for African American couples.
... Research shows that married couples often end up in a fight not over how much money they earn or have, but mostly over their financial management practices [6]. These financial arguments sometimes create resentments in the partner which are more likely to dissolve their relationship [13,14]. Financial capability measures assess people's ability to manage their finances which also includes making appropriate financial decisions [11]. ...
... On the other hand, some couples believed that keeping financial discussions to a minimum with their partner helped to maintain relationships by preventing pointless financial conflict [22]. Dew (2008) discovered that the higher the wife's contribution to household income, the more she communicates with her husband about household finances. When both spouses work, they both believe they should have control over the household finances, which can lead to domestic financial problems [10]. ...
... In recent reviews on finances among mixed-gender couples, Dew (2008Dew ( , 2016 stressed the need for a greater understanding of the interactions between gender and financial power in romantic relationships. Although gender is inherently part of all research on couple finance, issues such as power, privilege, and inequality are rarely part of the discourse. ...
... Research has also begun to explore how power and even coercion are involved in couple financial decision-making (Su et al. 2003). Dew (2008) recently called for more research dedicated to the intricacies of couples' communication about finances. ...
Feminism is rarely used as a theoretical framework for couple finance research. The purposes of the present paper are (a) to discuss couple finance research in the context of feminism to encourage more frequent and explicit use of feminism in couple finance research, (b) to present a gender and couple finances model, and (c) to test this model with longitudinal dyadic data. Using actor-partner interdependence models (APIM) and data from 327 U.S. mixed-gender couples, relational power was explored as a potential mediator between four couple financial processes (earners of money, access to money, management of money, and conflict about money) and two relationship outcomes (relationship quality and relationship stability). Results suggest that couple financial processes are associated with relationship outcomes and with joint management as well as low conflict being key longitudinally. Additionally, although power may not play a mediating role, it appears to be connected to couple financial processes and relationship outcomes concurrently. Gender differences as well as both actor and partner effects are explored. This research has implications for researchers, clinicians, and educators. For example, clinicians may want to encourage their clients to use joint bank accounts, manage their money jointly, and minimize financial conflict. Gender, and therefore power, are inseparably tied to couple finances. When both spouses are involved in financial processes, partners tend to be more empowered, and relationship quality and stability tend to be higher.
... Instead, they often find it easier to argue with their spouse to convey the message (Shapiro, 2007). Dew (2008) has found that the greater the income contribution of the wife, the more she will feel at liberty to discuss household financial affairs with her husband. If one spouse manages the finances without the input of the other, it can cause enormous conflict in a marriage (Garner, 2008). ...
... Arguments can also arise when one spouse spends money irresponsibly. In fact, the most frequent financial argument among married couples relates to their companion's reckless spending (Dew, 2008). Some couples even confess that they hide their purchases, credit cards and even bank accounts from their spouse (Atwood, 2012). ...
Arguments about money represent one of the most common reasons for divorce. South African and several Western cultures consider communication about money as uncivil and taboo – even more so than sex and death. The aim of this investigation is to determine newly married couples' views of gender roles in marriage with regard to financial management. Various factors can lead to personal financial problems and marital problems, namely financial illiteracy, financial phobia, low income, an excessive standard of living, compulsive buying and indebtedness. In general, men are more confident with regard to financial management, a phenomenon that is also confirmed by the results of this study. This was a quantitative study and questionnaires were distributed amongst couples that have been married for less than 10 years. Both spouses had to complete a questionnaire, and in order to ensure frankness they were requested not to share their answers with each other. The results show that both genders consider men to be superior concerning financial behaviour. The women indicated that they are not as self-confident with regard to their own ability and knowledge of financial management, despite major advances in the empowerment of women and the fact that many women are breadwinners in their homes. The indication by men that they have little faith in their wives' abilities to discern between luxuries and essentials was statistically significant. The sensitivity of the topic was once again emphasised by, in particular, the strong reaction from men about the completion of the questionnaires. Future research in this domain is essential, but it is recommended that anonymity be regarded as a critical point in gaining a larger response rate.
... The importance of research on the financial practices of couples has been affirmed in the literature (Dew, 2008). Examining patterns of couples' spending, control of resources and decision-making processes in financial matters is important not only to understand households' economic behaviour, but also to serve as a basis for various kinds of interventions for the promotion of family wellbeing. ...
... Given the widely diverse features of both the families and the contexts in which they operate, couples' financial decisions are a complex issue which has implications for different spheres of family life. Hence, it has become an object of study for various academic disciplines (Dew, 2008;Waseem, 2004). ...
The relationship between conjugality and household financial management has yet to be properly studied in Portugal, particularly in what concerns the ways dominant social norms regarding gender and marriage influence financial behaviour, power relations and resource consumption and sharing by couples. Studies carried out in other countries show that the various systems for managing family accounts are related, in a complex manner, to access to resources, wellbeing and satisfaction of needs of the different family members. This paper aims to contribute to the understanding of this subject in the Portuguese context by discussing the complexity of intrahousehold financial negotiations and decisions. It also presents the preliminary results of a study which, using data from the 2010 Portuguese Institute of Statistics Survey on Income and Living Conditions, applies to Portuguese couples a typology of modes of financial management and control developed by Jan Pahl and Carolyn Vogler.
... Economia da família e finanças familiares: dinheiro, género e poder A importância da pesquisa sobre práticas financeiras dos casais tem sido afirmada na literatura (Dew, 2008). Conhecer os padrões de despesa, o controlo sobre os recursos e os processos de tomada de decisão dos casais em matéria financeira releva, não só para a compreensão dos comportamentos económicos da família mas, também, para informar intervenções de diversa natureza para promoção do bem -estar familiar. ...
... Trata -se de uma problemática complexa, determinada por uma multiplicidade de caraterísticas das famílias e dos contextos em que elas operam, ao mesmo tempo que tem, ela própria, implicações em domínios diversos da vida familiar. Tal justifica que constitua objeto de estudo para várias disciplinas científicas (Dew, 2008;Waseem, 2004). ...
The relation between marriage and family financial management and, in particular, the way dominant social norms on gender and marriage influence financial and consumer behaviors, power relations and sharing of resources by spouses, has not yet been studied in Portugal. Previous research studies conducted in other countries show how different management systems of family finances are related, in a complex way, to the access to resources by different household members as well as to their well-being and satisfaction with family life. This paper discusses the complexity of intrahousehold bargaining and financial decisions, and tests the application of a typology developed by Jan Pahl and Carolyn Vogler to the Portuguese case, using data of the 2010 Statistics on Income and Living Conditions (Portuguese Institute of Statistics).
... However, some research has found it to be insignificant [37]. Additionally, marital status can impact risk tolerance, financial status, and family expenses [33,38], but the effect of risk tolerance on married couples has not been found in past research [39]. Lastly, investment objectives change as investors age, and this reflects the selection of financial products for their investment objectives, such as retirement, savings, or tax benefits [38]. ...
There are various types of mutual fund distributors in Thailand that utilize technology to provide investment services to individual investors. These services can be accessed through mobile or internet banking, allowing investors to make transactions and invest in mutual funds at their convenience. This work aims to identify the factors that influence individual investors in Thailand to use digital investment services offered by brokerages. We have developed a conceptual model based on the Technology Acceptance Model (TAM2) and relevant literature on fintech and financial behavior, comprising seven variables and six hypotheses. Our research method involves a questionnaire survey of Thai investors and the use of partial least square structural equation modeling (PLS-SEM) for data analysis. The results show that individual investors’ intention to use digital investment services is significantly impacted by their perception of the usefulness of these services. Additionally, this intention is also influenced by other variables such as convenience, trust, and subjective norm, but not by perceived ease of use. This may be because most of our study’s participants are tech-savvy. Our findings provide insight into the perspectives and perceptions of Thai individual investors who have experiences of mutual fund investment.
... Family members are often named as individuals' closest contacts and as the people with whom individuals discuss important issues (McPherson et al., 2006;Klofstad et al., 2009). Further, a similar social status between partners can be assumed because relationships tend to happen between individuals who are from similar social backgrounds (Kalmijn, 1998;McPherson et al., 2001;Blackwell and Lichter, 2004) and also because within-couple resources are commonly shared to a certain degree (Dew, 2008;Lyngstad et al., 2011). Interdependence is also given-on the one hand due to the shared resources and on the other hand because decisions made by individuals strongly influence the other members of the family (Kelley and Thibaut, 1978). ...
A key element of migrants’ well-being is their emotional integration, that is, the extent to which they perceive themselves as members of society and their identification with the country they are living in. To foster this sense of belonging, many integration programs aim to increase the migrants’ social integration, for example, by organizing events for migrants to meet natives in various settings. The validity of this strategy is supported by decades of international research. It remains unclear, however, which aspects of social integration are most relevant for national identification. Multiple theories concerned with contact and group identification support the assumption that contact to natives should foster a sense of belonging and national identification. However, for a contact situation to bear this potential, a certain set of criteria, including aspects like direct personal contact, a similar social status, and the presence of egalitarian norms, needs to be fulfilled. It is expected that these characteristics are more likely to be fulfilled within family and friendship settings than in contact situations within the employment context. Hence, I expect contact to natives within the network of friends and family to be more greatly associated with migrants’ national identification. I analyzed data from a 2013 cooperation between the Institute for Employment Research (IAB) and the German Socio-Economic Panel (SOEP), that is, the IAB-SOEP Migration Sample, as well as the 2014 wave of the SOEP. The subsample used included 2,780 first- and second-generation migrants living in Germany. The results indicate that not all kinds of contact are equally linked to national identification. In contrast to expectations, in neither the cross-sectional models nor the lagged models was living together with native family members significantly linked to national identification. Similarly, the association between having predominantly native co-workers and national identification was insignificant when controlling for migrant-specific characteristics. Only the relation with having predominantly native friends was significant and positive across all models. This as well as a comparison of the associations lead to the conclusion that when it comes to migrants’ national identification native friends might be the most relevant form of contact to natives.
... Therapists who incorporate aspects of financial therapy in their work are uniquely situated to help couples increase their understanding of each other's financial perspectives. This increased understanding can relieve couple conflict arising from negative interactions around the day-to-day management of household finances, and in turn improve overall relationship quality (Dew 2008). Within the field of financial therapy, approaches are being developed to help practitioners work more effectively with couples who identify both relational and financial concerns. ...
Disagreements about money are a significant and frequent source of conflict in couple relationships. Few studies to date have explored the dynamics of money in a couple context, and even fewer have explored the influences financial therapy may have on relationship outcomes and help-seeking intentions. The current exploratory study describes a three-session model involving a collaborative approach to financial therapy. Initial findings demonstrate a benefit to the couple relationship as well as insights on subsequent help-seeking intentions following the collaborative process. Financial therapy approaches may help prime couples for additional therapeutic and financial services, as emotional and relational topics tied to shared financial decisions and behaviors are disentangled. Implications and benefits for therapists and financial planners are discussed.
... Despite the important role of money both culturally and interpersonally, little is known about finances from a relational communication perspective (Dew, 2008). Limited communication research predominately involves parent-child interaction, identifying the ways in which parents teach and model behaviors to their children via consumer and financial socialization (e.g., Edwards, Allen, & Hayhoe, 2007), as well as how family communication patterns can influence children's discussion of finances (e.g., Thorson & Kranstuber Horstman, 2014). ...
Using the lens of Relational Dialectics Theory, this study sought to uncover how competing U.S. cultural financial discourses are negotiated in people’s everyday conversations with their romantic partner. The investigation uncovered that in multiple and varied ways, participants understood money to be a major source of tension in their romantic relationships. One overarching discursive struggle animated participants’ financial talk with their partners: “money is everything” versus “money isn’t everything.” Within this struggle, participants communicatively negotiated the cultural value of money in an attempt to marginalize its power and potential negative influences on relational and economic well-being. Although money is critical in helping people meet their basic needs, this study suggests that deemphasizing the importance of money as all-consuming and omnipotent has the potential to alter couples’ financial and relational well-being.
... On the one hand, debt is a borrowed resource that young people can use to bridge the gap between their families' resources and the rising costs of college. On the other hand, debt comes with inherent risks, which may limit students' opportunities and choices after college (Dew 2008;Dwyer et al. 2012) and undermine well-being (Drentea 2000). These risks are especially high in the current economy, where young adults with postsecondary education are struggling to find high-wage jobs and full-time employment (Godofsky, Zukin, and Van Horn 2011). ...
In an era of rising college costs and stagnant grant-based student aid, many young adults rely on their parents' resources and student loans to pay for their postsecondary education. In this study I ask how parents' income and education are linked to young adults' student loan debt. I develop and test two perspectives regarding the functional form of the association between parents' income, parents' education, and student loan debt. I have four key findings. First, the relationship between parents' income and student loan debt is nonlinear, such that young adults from middle-income families have a higher risk for debt than do those from low- and high-income families. Second, young adults from college-educated and high-income families are relatively protected from debt. Third, the association between parents' socioeconomic status (SES) and debt is modified by postsecondary institutional characteristics and is strongest at private and high-cost institutions. Finally, the effect of parents' SES on debt varies across the debt distribution. Parents' SES is strongly predictive of entry into debt, but there are few differences conditional on going into debt. This suggests that socioeconomic disparities in debt are primarily driven by the probability of going into debt rather than differences among debtors. However, compared to their more advantaged counterparts, young adults from low-SES backgrounds have a higher risk of accruing debt burdens that exceed the national average.
... While the term "materialism" has a certain negative connotation, trainees should perform a materialistic assessment of the research setting. In marriage, economic stressors can negatively impact the relationship, and nancial concerns are associated with decreased marriage quality [16].Similarly, in a supervisortrainee relationship, nancial stressors can also negatively impact the relationship, and nancial stability (i.e., research grants) is an important criterion, especially if the trainee's stipend depends on it. Finances will also determine the available reagents, the degree of freedom with ordering reagents and the travel opportunities. ...
Purpose:
Clinician Investigator Trainee Association of Canada/ Association des cliniciens-chercheurs en formation du Canada (CITAC/ACCFC) represents the interests of clinician-investigator (CI) trainees across Canada. To better advocate for the successful training of CI trainees in Canada, CITAC/ACCFC conducted a survey to assess satisfaction with their training and to find what factors were most associated with satisfaction level.
Methods:
A nominal scale-based psychometric survey was conducted online in 2009 on CI trainees in Canada (including MD/MSc, MD/PhD, or CIP/SSP). One hundred fifteen out of a target population of approximately 350-400 responded. Survey respondents were asked to rate their level of satisfaction in four areas: 1) quality of training, 2) financial support, 3) mentorship satisfaction and 4) program structure. Ratings in these four areas were also combined to produce a measure of overall satisfaction.
Results:
At least half of the respondents were 'completely satisfied' in each of the four categories other than mentorship. While 98% of respondents considered mentorship as important to their success, 62% expressed some level of dissatisfaction with the level of mentorship received. Moreover, increased levels of mentorship were strongly associated with increased levels of overall satisfaction.
Conclusion:
The discrepancy between CI trainees' perceived importance of mentorship and the level of satisfaction in mentorship received reveals a strategic area where CI training should be improved. Recognizing that good mentorship in a CI training program often begins with one's research supervisor, the CITAC/ACCFC has compiled six specific recommendations for finding a good supervisor.
What role do financial worries play in close relationship functioning? In this research, we examine how financial worry – negative thoughts and feelings about finances – is associated with perceived relationship behaviors. Participants recalled how their partner acted during a recent disagreement (Study 1, N = 97 couples) or recalled the frequency of positive and negative behaviors enacted by their partner during the previous week (Study 2, N = 99 couples). Feeling more worried about finances was associated with recalling less supportive behavior from one’s partner at the disagreement (Study 1) and with perceiving more negative behaviors from one’s partner in the last week (Study 2). Truth and Bias Model analyses suggest that part of this link may be attributed to biased perceptions, as the link between financial worry and perceiving more negative behaviors persisted even after controlling for participants’ own reported behaviors (i.e., accounting for similarity) and for their partner’s own reported behaviors (i.e., accounting for accurate perceptions). In sum, financial worry is linked to how partners notice and interpret a loved one’s actions within their relationship.
Objective
This study explores whether relationship satisfaction among older individuals living with a partner is influenced by partners' status of working or being retired, and whether the degree of pooling money affects the association.
Background
Couple's spending decisions are likely influenced by the partner with the greatest bargaining power, which may lead to different levels of relationship satisfaction. However, any role of partners' statuses on relationship satisfaction may change when adjusting for how partners organize resources.
Method
The subsample consists of older respondents in the Swedish Gender and Generations Survey 2012–2013 ( n = 1,737). The analytical approach is logistic regression where the outcome is whether the respondents are completely or not completely satisfied with their relationship.
Results
Working respondents with a working partner were less satisfied with their relationship compared to retired respondents with a retired partner. In models considering the gender of whom is retired or working, respondents in couples with a working woman and a retired man were also less satisfied than retired respondents with a retired partner. However, this association disappears when adjusting for degree of pooling.
Conclusion
In couples where the woman retires earlier than the man, it can have a negative impact on relationship satisfaction when the partners do not pool money. For couples with the same status, pooling seems to matter less.
Implications
Financial educators, practitioners, and policymakers may acknowledge that retirement and working status of older partners play a role for relationship satisfaction, and how partners organize resources may be one area that provides a potential explanation for such problems.
This study investigates gender differences in household financial behavior using data from the 2018 National Financial Capability Study, a large and nationally representative survey about adults’ financial behavior, knowledge, and attitudes. The behaviors include paying your credit card in full each month, having a 3-month emergency fund, having non-retirement investments, and having a non-employer retirement account. Results showed that single females were significantly less likely to engage in any of the financial behaviors compared to men. Additionally, females in joint households were also significantly less likely to engage in the behaviors compared to males. These results are robust when splitting the single and joint household samples by age, level of financial literacy, and using a sample from a prior year. Therefore, females may not be well-prepared for financial decision-making in single or joint households, which can have adverse consequences for managing current personal finances and building wealth for the future.
JEL codesD12, D14, I21
An economic crisis has severe consequences for a country in terms of high job losses, lower income and a decrease in investments. Consumer demands are an important factor to help keep the economy strong, but when consumers are over-indebted, losing their jobs or experiencing a slowdown in income, it will cause a downward trend in the economy.
A severe increase in the debt-to-income ratio of households took place in South Africa the last decade. Credit was extremely easy to obtain and no measures were in place to determine whether individuals were able to repay the debt. An increase in interest rates on personal and home loans led to individuals becoming over-indebted. Currently consumers not only face high interest rates, but also extremely high cost of living in terms of electricity rates, and petrol and food prices. At present consumers thus find themselves strangled in a web of debt and high costs, which make it impossible for them to even think of putting money aside for savings and retirement. In addition, South Africa is currently experiencing a slow savings rate, which also causes a set-back on economic growth.
Many financial problems originate from the lack of personal financial knowledge. Financial problems result in divorce, stress and depression, bankruptcy and a decline in employee performance and productivity. Yet, some adults do not even have basic educational training. Other factors contributing to financial problems include financial phobia, compulsive buying behaviour and debt. Financial literacy is an important tool for daily personal financial management in that it helps an individual make wise financial decisions, overcoming or avoiding debt and increasing savings.
Young married couples tend to ignore one another's different ideas about money and their different money management personalities. Managing finances as a couple is much more challenging than doing so individually. Each spouse has a different perception of money and reveals different behaviours and attitudes towards their finances. Lack of communication between couples on their differences can cause
arguments between them. A couple's marital satisfaction depends partly on their personal financial management practices. Marital dissatisfaction can lead to divorce.
The aim of this study was to obtain information regarding the young, married couples‟ personal financial management practices of living in the Bloemfontein area during 2010 and 2011. The secondary objectives aimed to evaluate the importance of sound financial management for an individual or within a marriage. In addition to this, to determine how young married couples manage their finances, communicate and disagree, and the behaviours, attitudes and perceptions they have regarding their finances. The target population consisted of 75 married couples; in other words, 150 respondents completed the questionnaire.
The results show that approximately 30% of the respondents never put money aside for savings and retirement. Compared to the literature, nine out of every 10 individuals do not have enough money to live on when they reach their retirement age, which forces them to continue working. One out of every two respondents has a credit card and clothing accounts, and vehicle finance was close to this figure.
Couples prefer to share the decision-making with regards to their financial matters in the household. Couples who constantly disagreed on financial matters amounted to 11,5%. A spouse's debt situation is the biggest contributor to financial stress in a marriage.
Of the total respondents, 20% were extremely negative about their personal finances and 59,3% refuse to consult a financial advisor regarding financial matters, while 36,7% of the respondents were dissatisfied with their present financial situation.
Each spouse has a higher esteem of their own personal financial management practices compared to how their partners perceive their management practices. Overall, the confidence in the husband's personal financial management practices are rated the highest by both husband and wife.
This chapter examines research pertaining to the association between financial issues and marriage. The majority of the research reviewed was published after 2008. These studies show that financial issues relate to marriage formation, marital quality, and marital stability (i.e., divorce). Specifically, financial stability is associated with a greater likelihood of marriage. Further, behaviors that financial practitioners would label “sound financial management” are positively associated with marital quality and stability. For example, longitudinal studies found that consumer debt was positively associated with divorce whereas financial assets were negatively associated with divorce. Studies have also found that financial arguments create worse relationship outcomes for couples than other types of disagreements. Because this area of research has been investigated for less than 30 years, this chapter also identifies areas that need further research including gender, diversity, and class issues.
Social processes play a major role in developing children into capable producers, consumers, and agents of financial socialization in adulthood. The latest research continues to demonstrate that parents exert more influence than educators, peers, media, and self-learning in promoting good financial behavior and experiencing financial wellbeing, although all these factors play a role in financial socialization. Research has also progressed in elucidating the mechanisms of social interaction and the psychosocial characteristics of individuals that pair with financial literacy to achieve desirable financial outcomes. Longer periods of financial interdependence are realities for many families living in fluctuating economies that require ever greater investments in education, often accompanied by student loan debt, to achieve long-term financial success. Thus, it is important that future financial socialization research considers longitudinal processes that span adolescence, early adulthood, and the midlife, while better attending to economic realities of time and place. Theoretical foundations of financial socialization have continued to take shape and can benefit from further development and use as the basis for empirical work.
The main objective of this study was to extend previous research in the area of longitudinal marital satisfaction by examining how marital issues, including decision-making, activities, affection, conflict, financial matters, stability, and values, changed over the first 5 years of marriage for 242 Utah, Latter-Day-Saint individuals. In addition, this study examined whether change occurs differently for husbands versus wives and for at-risk individuals versus non-risk individuals. The results showed that four marital issues worsened over time (activities, affection, conflict, and stability). Two of the six subscales (activities and affection) were found to differ significantly by gender. In addition, four subscales were significantly different for at-risk couples when compared with non-risk couples (decision-making, activities, conflict, and stability). Limitations and recommendations are discussed.
Assets have the potential to influence marital happiness and satisfaction. Using the two waves of the Korean Longitudinal Survey of Women & Families (KLoWF), this study examines the extent to which assets, debts (negative assets) and their changes are related to a wife's marital happiness and relation satisfaction with her husband, controlling for the socio-economic characteristics of the wife. This study found that financial assets, real assets and their changes have significant associations with a wife's marital happiness and relation satisfaction with her husband. Relatively, income was not strongly related to marital satisfaction. The findings of this study underscore the importance of assets for marital satisfaction.
This study examined relationships among the financial practices, financial well-being, and health of a sample of 3,121 financially distressed consumers who were new clients participating in the debt management program of a large national non-profit credit counseling organization. Respondents who reported having improved health since participating in credit counseling were more likely than others to engage in positive financial behaviors. For six out of ten financial behaviors, respondents who reported improved health were more likely to report that their finances improved. Implications are provided for financial counselors and educators.
This study reports empirical results based on an original survey of household finances in which, unlike other surveys, the participants were specifically asked about their degree of involvement in financial decision-making for the household. Women's involvement in household finances is found to be significantly positively related to their share of total household income. Since the most commonly-used datasets for household financial research do not identify the household decision-maker, previous research on gender differences in financial decision-making has been limited. This research suggests that female share of total household income could be a viable proxy for female decision-makers in married couples. © 2002, Association for Financial Counseling and Planning Education All rights of reproduction in any form reserved.
This article examines union entrance among never-married young men, focusing on whether the importance of a man’s being economically established to marry has decreased in this new era of cohabitation and working wives. The authors test this assumption by examining marriage and cohabitation as competing risks to see whether the importance of employment has changed between the cohorts of the 1970s and 1990s. Data are from the National Survey of the Labor Force Experience of Young Men and the National Survey of Families and Households. The results show that Controlling cohabitation as a competing risk makes some difference in models of marriage, because marriage is somewhat more selective. More important changes reflect the decline in the importance of employment and the increased role of values. Indirect indicators, such as race, region, and childhood family structure, and direct measures of gender role attitudes have become critical influences on men’s likelihood of union formation.
This article argues that marriage has under- gone a process of deinstitutionalization—a weakening of the social norms that define part- ners' behavior—over the past few decades. Ex- amples are presented involving the increasing number and complexity of cohabiting unions and the emergence of same-sex marriage. Two transitions in the meaning of marriage that occurred in the United States during the 20th century have created the social context for deinstitutionalization. The first transition, noted by Ernest Burgess, was from the institutional marriage to the companionate marriage. The second transition was to the individualized mar- riage in which the emphasis on personal choice and self-development expanded. Although the practical importance of marriage has declined, its symbolic significance has remained high and may even have increased. It has become a marker of prestige and personal achievement. Examples of its symbolic significance are presented. The implications for the current state of marriage and its future direction are discussed. A quarter century ago, in an article entitled ''Remarriage as an Incomplete Institution'' (Cherlin, 1978), I argued that American society lacked norms about the way that members of stepfamilies should act toward each other. Par- ents and children in first marriages, in contrast, could rely on well-established norms, such as when it is appropriate to discipline a child. I predicted that, over time, as remarriage after divorce became common, norms would begin to emerge concerning proper behavior in step- families—for example, what kind of relationship a stepfather should have with his stepchildren. In other words, I expected that remarriage would become institutionalized, that it would become more like first marriage. But just the opposite has happened. Remarriage has not become more like first marriage; rather, first marriage has become more like remarriage. Instead of the institutionalization of remarriage,
A longitudinal panel study of newly married couples is utilized to examine hypothesized consumption and finance-handling differences between couples who subsequently become divorced or remained happily married. Happily married couples were found to practice role specialization, with greater influence of the wife and less husband dominance in family finance handling, and greater joint and wife influence in decision making. Compared with divorced couples, they spent more for household appliances, home purchases and down payments, and recreational vehicles, as hypothesized. Divorced couples spent more on stereos and color TVs, as well as living-room furniture. It is suggested that economic adequacy, equality/equity, conflict management, and family commitment interact with socioeconomic antecedents to affect marital satisfaction.
Marital satisfaction, marital adjustment, and problem areas experienced during the early months of marriage were examined using a sample of 1,010 newlywed husbands and wives. Results revealed that between 8% and 14% percent of newlyweds already scored in the distressed range on measures of marital satisfaction and adjustment, respectively. For both husbands and wives, the most problematic areas in the early months of marriage were balancing employment and marriage and debt brought into marriage. However, protective factors in the marriage, including respect, appreciation, commitment, mutual affection, and trust, were the strongest predictors of marital satisfaction and adjustment. Implications for future research and family life education are proposed.
This study examined the widely held but largely untested belief that financial issues affect marital satisfaction. The sample consisted of student families at Utah State University. The questionnaire included the Frequency of Financial Management and Frequency of Financial Problems Scales and the Revised Dyadic Adjustment Scale. Financial management behaviors and perceptions of how well finances were managed, as well as financial problems and perceived magnitude of financial problems were found to be significantly related to respondents' marital satisfaction. This study supported the relationship between finances and marital satisfaction by identifying that 15% of marital satisfaction was predicted by financial factors. These results must be viewed with caution since the sample consisted exclusively of young, low income couples married for a short time.
Predictors of increases in marital distress over the 1st 3 yrs of marriage were identified for husbands and wives of 310 couples. Using Year 1 variables as predictors, linear increases in marital distress over 3 yrs for husbands were predicted by few years of education, few months of living together, and not pooling finances. For wives, the Year 1 predictors were few years of education, low income, living with stepchildren on a full- or part-time basis, many rewards, few costs, not pooling finances, and high emotional investment. Linear increases in marital distress were related to linear changes in both contextual and investment model variables for both spouses. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
This study investigated the effects of income and life cycle variables on the ownership of eleven household held financial assets, using the 1989 Survey of Consumer Finance. Logistic regression indicated that life cycle variables, such as household head's age, marital status, employment status, and child's presence, influenced ownership of 11 financial assets. The results can be used to construct various family life cycle scenarios to improve educational and business programs in financial planning and counseling. KEY WORDS: saving, individual investors, family life cycle, financial assets Over its life cycle, a family will face many financial tasks, problems, and challenges (Garman & Forgue, 1994). Families use a variety of financial assets for various goals. Some financial assets, such as checking accounts, are held by most families whereas other assets, such as stocks, are held by a minority of families (Kennickell & Shack-Marquez, 1992). Consumers have diverse saving patterns (Hogarth, 1991) and asset portfolios (Weagley & Gannon, 1991). This research examines the impact of family life cycle stage and income on the ownership rates of 11 financial assets.
Using the two waves of the National Survey of Families and Households (NSFH), we examine the effects on marital dissolution of couple's gender attitudes, perceived unfairness, marital disagreements, and relationship alternatives, exploring whether these dimensions of marriage influence marital dissolution, net of serious forms of hardship commonly noted in divorce research. With event history methods, we find that husbands’, but not wives’, perceived disagreements and alternatives are associated with higher odds of marital dissolution, though couples' marital happiness strongly mediates the effects of husbands' dissatisfaction. Wives' traditional attitudes are associated with lower odds and husbands' with higher odds of marital dissolution. We find no significant effects of unfairness perceptions on divorce. A nonviolent relationship is associated with lower odds of marital dissolution, but accumulated assets and debt and husbands' drug or alcohol abuse are not associated significantly with marital dissolution. Our analysis contributes to divorce research by demonstrating the importance of gender attitudes and low physical conflict and by showing that instances of perceived dissatisfaction might not matter for couples as much as marital happiness as an influence on divorce.
The qualities people believe are important in selecting a marriage partner afford one domain for assessing human values. We examined the cultural evolution of these values over more than half a century. Building on existing data on mate preferences collected in 1939 (N= 628), 1956 (N= 120), 1967 (N= 566), and 1977 (N= 316), we collected data using the same instrument in 1984/1985 (N= 1,496) and in 1996 (N= 607) at geographically diverse locations. Several changes in values were documented across the 57-year span. Both sexes increased the importance they attach to physical attractiveness in a mate. Both sexes, but especially men, increased the importance they attach to mates with good financial prospects. Domestic skills in a partner plummeted in importance for men. Mutual attraction and love climbed in importance for both sexes. The sexes converged in the ordering of the importance of different mate qualities, showing maximum similarity in 1996. Discussion speculates about causes of the cultural evolution of values.
Using the 1998 Survey of Consumer Finances (SCF), this study examined factors related to two types of consumer debt: installment debt and credit card debt. To address the limitations of the conventional life-cycle hypothesis, the study incorporated ability, willingness, and need to borrow, and prudence as well as life-cycle stages in the conceptual framework. The results of the double-hurdle model showed that life-cycle stages, willingness and ability to borrow, prudence, and the need to borrow were significant factors affecting installment debt and credit card debt. Based on the results, implications for financial counselors and educators, lenders, consumers, and policy makers are discussed.
The purpose of this paper was to examine the effects of economic well-being on marital stability using longitudinal data from the National Longitudinal Survey of Labor Market Experience. The sample was 1,349 married females who were interviewed annually over a five year period. The data indicated that income by itself had little effect on marital dissolution. The level of assets had a rather substantial effect on marital breakup even after other relevant variables were controlled. It was also found that the dissolution rate was considerably higher for blacks than whites and the marital dissolution decreased as level of education increased. These data suggest that direct income supplements may have little effect on marital dissolution unless they increase the level of family assets.
We test two hypotheses about the relationship between age and reported difficulty paying bills or buying things the family needs, such as food, clothing, medicine, and medical care. The affluence-trajectory hypothesis follows from age-group differences in income, income per capita, and official poverty, suggesting that economic hardship declines in successively older age groups up to late middle age but then rises. The adequacy-gradient hypothesis follows from research suggesting a progressively favorable balance of resources relative to needs in successively older age groups, suggesting that economic hardship declines progressively in successively older age groups. Two U.S. surveys (1990 and 1995) find a progressive decline in economic hardship in successively older age groups consistent with the adequacy-gradient hypothesis. Most age-group differences in economic hardship appear attributable to differences in the presence of children in the home, in resources such as homeownership and medical insurance, and in behaviors such as moderation and thrift.
Marriage is considered as a special instance of social groups in general. Marital cohesiveness and divorce are viewed in terms of the properties of group cohesiveness. It is suggested, therefore, that the strength of the marital relationship is a direct function of social and psychological attraction and barrier forces inside the marriage, and an inverse function of such influences from alternate relationships. Findings from major investigations of marriage and divorce are cited to illustrate the applicability of the conceptual framework.
This study investigated the extent to which reports of marital problems in 1980 predicted divorce between 1980 and 1992, the extent to which these problems mediated the impact of demographic and life course variables on divorce, and gender differences in reports of particular marital problems and in the extent to which these reports predicted divorce. Wives reported more marital problems than husbands did, although this was due to husbands' tendency to report relatively few problems caused by their spouses. A variety of marital problems predicted divorce up to 12 years in the future. A parsimonious set of marital problems involving infidelity, spending money foolishly, drinking or drug use or both, jealousy, moodiness, and irritating habits mediated moderate proportions of the associations between demographic and life course variables and divorce.
This study assesses the empirical viability of Johnson's (1991) commitment framework. The core principle is that commitment, rather than a unitary phenomenon, involves three distinct experiences: wanting to stay married, feeling morally obligated to stay married, and feeling constrained to stay married. Using data from a sample of married couples, we show that direct measures of the three experiences are not highly correlated with each other, that a measure of so-called global commitment is a function primarily, if not exclusively, of personal commitment, that the three direct measures of the experiences of commitment are associated for the most part with the components of each type as hypothesized in the commitment framework, and that the three types of commitment and their components are not associated in the same way with other variables.
The factors that influence economic status in late life are examined with particular attention to economic trends, public and private income maintenance policies, and marital and family relations. While the impact of these factors on today's retirees has been mostly positive, current trends are identified that may result in a retreat from the strong economic gains made by the elderly over the past 50 years. An examination of how changes in family structure and composition may affect the economic status of Baby Boomers in retirement is highlighted.
Virtually no studies exist that support the still popular belief that financial problems are the number one cause of divorce. Recent studies have found financial problems to be poor predictors of divorce. This study investigated the effect of selected demographic characteristics on the relationship between financial problems and divorce for individuals who were in their first marriages.Discriminant analysis techniques were used to analyze the data. Although all of the discriminant functions were statistically significant, the demographic and financial-problem variables generated no meaningful predictive power. That is, the variables used in this study were not useful in discriminating the divorced from the nondivorced.
Financial and market conditions in the 1990s caused a sharp increase in the housing debt (in constant dollars) of households now approaching or just past normal retirement age. Households now in middle age have also set new records for housing debt and will likely continue to carry high housing debt when they reach old age in 10 or 20 years.In the future, this housing debt burden is likely to lead to financial and housing adjustments that suggest a qualitative change in behavior when these households reach the later stages of their working life. Many will need to work longer to service housing debt. When facing a life‐cycle downturn in annual income, households will be increasingly motivated to tap into their home equity, both by borrowing, for those who stay in their homes, or by downsizing and liquidating some equity, for those who choose to move.
What impact do marriage and divorce have on wealth? US data from the National Longitudinal Survey of Youth (NLSY79), which tracks individuals in their 20s, 30s and early 40s, show that over time single respondents slowly increase their net worth. Married respondents experience per person net worth increases of 77 percent over single respondents. Additionally, their wealth increases on average 16 percent for each year of marriage. Divorced respondents’ wealth starts falling four years before divorce and they experience an average wealth drop of 77 percent. While in percentage terms divorce hurts women more than men, the absolute difference is relatively small in the US.
The authors examine family purchase-decision dynamics to shed light on enhancing marketing communication effectiveness. In particular, the authors are interested in understanding the temporal nature of spousal behavioral interaction in family decision making to help marketers target communication messages, shape brand choice, and guide personal selling activities. The authors calibrate a dynamic simultaneous equations model to investigate spousal family purchase-decision behavior: What are spousal behavioral interactions in a discrete purchase decision, and what are the temporal aspects of spousal decision behavior across decisions? The results indicate that spouses tend both not to reciprocate coercion in a discrete decision and to adjust influence strategies over time. The authors also investigate the effectiveness of influence strategies and spousal satisfaction with decisions and their impacts on spousal subsequent decision behaviors from a postdecision perspective as a mechanism to explain why spouses revise decision behaviors across purchase decisions. The authors discuss marketing implications of their findings and present ideas about how to use these findings creatively to target advertising and sales messages to influential spouses in specific decision contexts.
After reviewing 25 accredited Marriage and Family Therapy programs, only one was found to require a course in family finances. This article addresses the issues associated with the absence of family finance training in most MFT programs. The omission persists in spite of ample evidence as to the influential role family finances play with regard to marital stability and satisfaction. Suggestions are made regarding course outlines and content that could be helpful in correcting this deficiency.
With the use of a midified job-search theory, a conceptual framework is developed to show that some factors influence marriage timing by either facilitating or impeding assortative mating. Transition-to-work is emphasized because work structures people's lifestyles and is the major source of socioeconomic status; however, its nature is often unpredictable in early adulthood, while other personal attributes emerge early. The theory is applied to the dynamics of assortative mating under two contrasting scenarios: when gender roles are highly segregated, and when women's economic roles start to resemble those of men. Finally, the implications of the analysis for Becker's reduced-gains-to-marriage argument are assessed.
Drawing on the literature on the links between economic resources and the transition to marriage, this study examines the
role of economic well-being in the formation of marital and cohabitational unions. I use event history models with data from
a large longitudinal data set of young adults. In general, economic well-being has a weaker association with cohabitation
than with marriage, but this differs by sex. Further, results suggest that both men and women who are economically unstable
are likely to cohabit. The findings suggest that cohabitation may provide an attractive alternative for those who are in romantic
relationships but lack the economic well-being required for marriage or lack the occupational stability that would make them
attractive candidates for the long-term contract that marriage implies.
Cohabitation is now the modal path to marriage in the United States. Drawing on data from 115 in-depth interviews with cohabitors from the working and lower middle classes, this paper explores how economics shape marital decision making. We find that cohabitors typically perceive financial issues as important for marriage, and we delineate several key themes. Whereas some social scientists speculate that cohabitors must think that marriage will change their lives in order to motivate marriage, our findings suggest that cohabitors believe marriage should occur once something has already changed—in this case, their financial status. Our results also imply that political and scientific discourse on financial problems as deterrents to marriage should be broadened beyond a focus on poor unmarried parents.
A model for conceptualizing relationship commitment is presented and the development of a measure corresponding to this model described. Commitment is considered as two constructs: personal dedication and constraint commitment. In study one, items developed for the Commitment Inventory (CI) were given to a sample of 141 subjects. Item analyses resulted in selection of the items for the inventory. In study two, 279 subjects yielded data used in further testing of the CI. Tests were conducted on the reliability of the subscales, the factor structure of the CI, and the associations between the CI and various other measures of commitment. Further, the CI was examined in relation to various demographic variables and various measures of other relationship constructs. Overall, the research demonstrated that the CI shows promise as a reliable and valid instrument for measuring commitment. Implications are discussed for both the CI and the concept of commitment.
This 25-year review of published research in Family Relations and Journal of Marriage and the Family found 91 articles that were generally related to family financial topics. Of that total, only three articles dealt specifically with family financial management. We offer several suggestions for areas of research that address the needs of practitioners, including specific recommendations for prevention and intervention. ©2005, Association for Financial Counseling and Planning Education. All rights of reproduction in any form reserved.
Utilizing a sample of 76 white, middle-class couples from a rural midwestern county, this study examined two central propositions: (a) the negative impact of economic hardship on a spouse's marital quality (happiness/satisfaction) or marital instability (thoughts or actions related to divorce) is in part a function of its influence on the affective quality of marital interactions, and (b) this process is particularly applicable to the hostile, irritable response of men to financial difficulties. A series of analyses supported these propositions. Economic pressures had an indirect association with married couples' evaluation of the marriage by promoting hostility in marital interactions and curtailing the warm and supportive behaviors spouses express toward one another. The hypothesized process was most pronounced for husbands, whose behavior was more strongly associated with economic problems than wives' behavior. Findings from the study are consistent with previous research that identifies negative affect as a principal behavioral correlate of marital distress; however, the results also suggest that more research needs to be done on the role of warmth and supportiveness in promoting marital quality. Limitations of the research and future research directions are discussed.
This study examines the relationship between family structure, private transfers, and the economic well-being of families
with children under 18. We use family wealth as a measure of economic well-being to mitigate some of the criticisms of traditional
measures based on income. We examine family structure beyond marital status to include remarriage, cohabitation, and the gender
of single parenthood. We focus on financial transfers from both kin and nonkin. After analyzing the distribution of family
wealth and transfers by family structure, we estimate the effects of family structure, transfers, and their interaction on
family wealth. Drawing on data from the National Survey of Families and Households (1987–88), we find that (1) family net
wealth and total private transfers vary with family structure along three lines, marriage-remarriage, marriage-cohabitation,
and male-female single parenthood; (2) marriage is a wealth-enhancing institution; (3) private transfers promote family net
wealth; and (4) marriage reinforces the promoting effect of private transfers on family wealth.
Structural equation modeling was used to test the mediators of economic circumstances on marital quality using a sample of married or cohabiting 36-year-old Finnish men (n = 133) and women (n = 117). The model tested was an adapted version of the model presented by Conger, Ge, and Lorenz. For the men, the results were consistent with the proposed model: Poor employment status caused economic strain and affected the lives of the men to the extent that current economic strain increased expected financial strain, leading to greater depression and greater hostility in the marriage, both of which, in turn, predicted poor marital quality. For the women, poor economic circumstances and, in particular, an unstable career line had direct effects on depression, marital hostility, and poor marital quality. The sex differences are related to the different roles played by economic matters and careers in men's and women's lives.
This paper examines the relationship between nonmarital cohabitation and routine exchanges of support between American adults aged 19–30 (N = 3,809) and their aging parents, using data drawn from the first wave of the National Survey of Families and Households. Cohabiting young adults were found to be significantly less likely to be exchanging support with their parents than their married or single, noncohabiting counterparts. Cohabiting young adults were also significantly less likely than married young adults to nominate their parents as persons to turn to in an emergency. Analysis of variability in exchanges of support with parents among cohabiting young adults revealed that the quality of the relationship with the parent to be the most potent predictor of exchanges.
Divorce literature has focused on demographic correlates and offered little information on how the dynamics of the marriage con tribute to marital dissolution. Using waves I and II of the National Sur vey of Families and Households (NSFH) this study identifies several marital characteristics associated with divorce, and differential results by gender. For example, time spent together is a significant predictor for women, but not for men whereas having an unsociable marriage is sig nificant for men, but not for women. While the results contribute to the literature on correlates, attention is drawn to the low levels of explained variance of the models and theoretical and methodological explanations are offered for why we have not done a good job of explaining divorce.
Some 201 couples divorced or contemplating divorce and 123 other divorced individuals are contrasted with 200 happily married couples and four individual spouses in respect to marital adjustment. All subjects came from a single county in Indiana and the data were secured by interviews. The marital adjustment test comprised 29 weighted items with the total questionnaire consisting of over 200 items. Factors found predictive of marital adjustment included length of acquaintanceship and engagement, absence of conflict and great affection of the couple before marriage, marriage between ages 21 and 29 years with approximate equality of ages of spouses, etc. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Although recently married couples report debt as one of their top concerns, research has not measured how debt changes relate to changes in their marital satisfaction. Further, the mechanisms that link debt and marital satisfaction are unknown. Findings using the National Survey of Families and Households (N= 1,078 couples) demonstrated that consumer debt changes predicted recently married couples’ marital satisfaction changes. Changes in variables associated with couples achieving their marital expectations (e.g., spending time together, arguing about finances) partially explained these findings. Changes in consumer debt negatively predicted couples’ time together and positively predicted arguments over money, which in turn were both associated with declines in marital satisfaction.
The Domestic Production of MoniesAllowance versus a Joint Account: The Allowance as “Bad” MoneyA Husband's Allowance: Domestic Money in the Working ClassPin Money versus Real Money: Defining Women's EarningsKeeping Money Domestic
The marriage relationship is considered as a special case of pair relationships in general, and its cohesiveness is interpreted according to concepts drawn from Lewinian field theory. The hypothetical constructs of “attraction” and “barrier” forces, as well as contrasting “alternative attractions,” are used to organize the research literature on the determinants of marital stability and dissolution.
In response to the recent economic crisis in Korea and its negative effects on families, the current study examined the interrelationships among economic pressure, emotional distress, marital conflict, and marital satisfaction for 236 Korean couples. The family stress model (Conger & Elder, 1994; Conger, Rueter, & Conger, 2000; Conger, Rueter, & Elder, 1999) was tested using structural equation modeling. The results generally supported the theoretical model, showing that economic pressure negatively affects marital satisfaction via emotional distress and marital conflict. The results also implied cultural differences in the process of family stress. Korean husbands' emotional distress did not affect marital conflict or marital satisfaction, suggesting that Korean husbands may differ from their wives in their reaction to emotional distress from economic pressure.
Using 1994 International Social Survey Program (ISSP) data, we examine the effect that cohabitation versus marriage has on couples' income organization approaches in Sweden and the United States, two legally and normatively different contexts. Previous research on this topic has focused almost exclusively on married couples, so our inclusion of both married and cohabiting couples helps fill a gap in the literature. The effects of ever having been divorced, socioeconomic homogamy, and traditional gender ideology also are explored. Type of relationship and ever having been divorced are the only variables that predict income organization approach in both countries, suggesting that relationship experiences are more important than socioeconomic or ideological factors.
This study estimates the life course incidence and age pattern of affluence among American couples in comparison to nonmarried, never married, and formerly married men and women. Life course probabilities are computed from a series of life tables built upon 25 years of data from the Panel Study of Income Dynamics (N= 8,510 25-year-olds; N= 3,481 45-year-olds). Results confirm the notion that marriage enhances the lifetime probability of affluence, and that this advantage varies sharply by gender and by race. The study suggests that the marital advantage for gaining affluence is textured by a financial landscape of gender and race inequality.
According to Pareto (1896), the distribution of income depends on “the nature of the people comprising a society, on the organization of the latter, and, also, in part, on chance.” In the model developed here the “nature of the people” is captured by attitudes toward marriage, divorce, fertility, and children. Singles search for mates in a marriage market. Married agents bargain about work, and the quantity and quality of children. They can divorce. Social policies, such as child support requirements, reflect the “organization of the (society).” Finally, “chance” is modeled by randomness in income, marriage opportunities, and marital bliss.
This study uses data from 5,174 households in the 1994–1995 Consumer Expenditure Surveys to investigate differences in expenditure patterns between households who borrow money and households who do not borrow money. Findings show that, holding total expenditure constant, compared with otherwise similar nonborrowers, borrowers spend less money on necessities such as shelter, food at home, and utilities, but more money on some luxury commodities that have the potential for social display, such as car purchases, household furnishings and equipment, and entertainment. Furthermore, borrowers are found to be almost unitarily income elastic with respect to apparel, medical services, alcoholic beverages, and food away from home, whereas these commodities are luxuries for nonborrowers. Borrowers are also found to spend more money on health insurance and prescription drugs and medical equipment, possibly due to poor health. Theoretical and empirical implications of this research are discussed in this study.
Data from the 1992 Health and Retirement Survey are used to specify ordinary least squares (OLS) regression models predicting wealth. Separate models are estimated for men and women. The results indicate that individuals who are not continuously married have significantly lower wealth than those who remain married throughout the life course. Remarriage offsets the negative effect of a marital dissolution. There are significant gender differences in these effects. The results demonstrate that accounting for the sequence of marital events provides a detailed picture of the life paths that lead to wealth heterogeneity among the older population.
I argue that there is significant disjunction between the way that families live their lives and the way that we theorize about families. Using the metaphor of positive and negative spaces from the art world, I argue that there are many negative spaces in our theorizing—everyday family activities that take up considerable time, energy, and attention but that are poorly represented in our theorizing about families. Specifically, there are three negative spaces that call out for more attention, including the realm of spirituality, emotions, and myths; activities related to consumption; and time and space.
Family development and prospect theory were used as a framework to predict variability in individuals' subjective financial risk tolerance within distinct family structures. Gender, age, and income were expected to interact with the main effects of family structure (marital status and children). Theory-generated hypotheses were examined in Study 1 (data from university housing respondents, n = 76) and Study 2 (the 1998 Survey of Consumer Finances, n = 4,305). One family structure main effect (child presence) was significant for investment risk tolerance in both studies. Family structure interactions (marital status age and child income) were significant for employment risk (Study 1), and child age was significant for investment risk in Study 2.