Diversity and Financial Style

northcarolinasweekGestion

10 nov. 2013 (il y a 7 années et 10 mois)

234 vue(s)

© 2008 The McGraw
-
Hill Companies, Inc. All rights reserved.

Diversity and Financial Style


Difference between low
-
income vs
middle
-
income vs higher
-
income
spending practices


Collective


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 extreme


hampers job performance


53% dissatisfaction with personal financial
situation


54% 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, 1999

n=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 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

© 2008 The McGraw
-
Hill Companies, Inc. All rights reserved.

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

© 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
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
H.S. Diploma
Bachelors Degree
Masters Degree
Doctorate
Professional Degree