Financial Problems of Urban Families

Abstract

Frequencies of 11 financial problems were examined in relation to (1) measures of well‐ being, (2) income, and (3) family characteristics. Families from disadvantaged areas in East Chicago, Indiana and Toledo, Ohio were selected randomly; 363 homemakers responded in personal interviews. Most families reported they never experienced the prob lems of “someone else spends the money before I can get hold of it” and “the money is lost, stolen or taken from my purse before I can spend it.” The remaining nine problems were experienced in this order from least to most often: danger of having gas or electricity turned off; getting behind in rent or house payments; not affording to keep household equipment and appliances in running order; not having enough food to last until there is money to buy more; inability to meet large bills; not enough money for dentist, doctor, or medicine; inability to buy new shoes or clothes; inability to buy special things my kids want; and inability to save money. Problems were associated with family income, income index, income dependability, ethnicity, and socioeconomic class. Perceptions of income adequacy increased as frequency of problems decreased.