Money Management Practices Research Articles

Propensity to spend and borrow at a time of high pressure: the role of the meaning of Christmas and other psychological factors

In countries where Christmas is celebrated, people are under pressure in the pre-Christmas period to spend on gift giving and socializing. In two surveys we investigated the role of the meaning of Christmas and other psychological factors in predicting propensity to spend and to borrow at Christmas (UK, N = 190; Norway, N = 234). Factor analysis identified three components of the meaning of Christmas: financial concerns, indulgence, and social aspects. In both surveys: (1) experienced financial hardship predicted lower propensity to spend and greater propensity to borrow; (2) more proactive money management practices predicted lower propensity to borrow; (3) material values predicted both propensity to spend and propensity to borrow; and (4) seeing Christmas as a time for indulgence, experiencing more negative affect, or less positive affect, predicted greater propensity to spend. Additionally: (1) in the UK survey, participants who said that lately they had been feeling more negative (more angry, sad etc.) had a greater propensity to borrow; and (2) in the Norway survey, an obligation gift motivation predicted propensity to spend. The findings show that in addition to experienced financial hardship and proactive money management practices, the psychological factors of material values, affect, and gift motivation play significant roles in propensity to spend and/or borrow at this time of high pressure. We discuss implications for theory and financial interventions.

Financial Management Behavior Of Indonesian Migrant Workers in Singapore

Indonesian workers better known as migrant workers from Indonesia who work in Singapore need to receive entrepreneurship education to encourage these migrant workers to improve one’s quality of life going forward, especially after returning to their homeland. Entrepreneurship training is a type of education that supports the growth of migrant workers’ entrepreneurial ambitions by offering opportunity to build businesses through opportunities and needs research of the market. This education hopes that migrant workers will earn income after working in Singapore. Apart from that, migrant workers also need to obtain good financial literacy. Financial literacy can support prosperity in the future and help achieve prosperity for the family. In Singapore, migrant workers’ financial management practices are more than adequate. Financial self-efficacy and financial literacy have an impact on migrant workers’ money management practices in Singapore. A hedonistic lifestyle does not show an impact on financial behavior. Therefore, in order to improve migrant workers’ welfare in the long run, the government must increase financial literacy and their capacity to make financial decisions.

Understanding money-management behaviour and its potential determinants among undergraduate students: A scoping review.

University students typically face acute financial pressure, which can adversely impact mental health, wellbeing, and academic outcomes. This scoping review of qualitative and quantitative studies aimed to identify distinct money-management behaviours, and psychological determinants, to inform future interventions. Two electronic databases were searched for observational studies focusing on money-management behaviours and their correlates (in quantitative studies) or reflections on experiences of such behaviours (qualitative studies). Of 789 unique papers identified, 12 papers, reporting 10 distinct studies (six quantitative, two qualitative, two mixed-methods), were entered into review. We inductively categorised all behaviours and psychological correlates, and narratively synthesised findings. We documented 15 distinct money-management behaviours, which fitted five higher-order categories: budgeting, saving (i.e., building funds), spending, borrowing, and settling debts. Twenty-two distinct potential correlates were observed, which fitted six categories: personality characteristics, financial beliefs and knowledge, attitudes, affective responses, self-efficacy and control, and social influences. Financial beliefs and knowledge, attitudes, self-efficacy and control, and social support from parents and peers were generally associated with 'better' money management practices. Heterogeneity in behaviours and correlates studied precluded definitive conclusions. Future studies should more comprehensively adopt theories and concepts from behavioural science, to distinguish between different money-management behaviours, identify which behaviours have most impact on students, and establish which specific determinants are most related to which money-management behaviours.

Is psychology of money a gendered affair? A scoping review and research agenda

AbstractThe study of gender differences in the financial domain is gaining increasing attention as evidenced by the UN 2030 Agenda for Sustainable Development. Previous research has highlighted the existence of a gender divide in many economic issues; however, there is still a lack of comprehensive understanding of the psychological aspects of money management. This systematic scoping review aims to fill this gap by outlining gender differences in money attitudes and money management practices, adopting the Scientific Procedures and Rationales for Systematic Literature Reviews protocol as methodological guideline. An extensive analytical strategy was employed on Scopus, Web of Science, PsycINFO, and EconLit to identify 100 empirical papers on the topic, published between 1972 and 2021. The analysis revealed clear differences in how men and women approach to money from a symbolic and attitudinal perspective, whereas evidence of money management practices is more complex and sometimes conflicting. Men and women hold different conceptions of money, with men often looking at it as a symbol of success and power and women holding more ambivalent attitudes toward money as both a source of anxiety and a means to ensure security and prove their love. As far as for financial behaviors studies indicate that both genders have similar approaches to savings and expenses monitoring, while financial investments are primarily pursued by men. Future directions and suggestions for private and public institutions are discussed, highlighting research advancements and implications for gender empowerment programs and customized communications.

An evaluation of a digital financial education program and the impact of COVID-19 on financial well-being among college students

Objectives To study the impact of a financial education program on financial well-being among college students. Participants 162 students at a university Methods We designed a digital educational intervention to improve money management practices and financial well-being among college students, where we delivered weekly nudges for three months via mobile phone and email to review and complete activities from the online platform CashCourse. We evaluated our intervention using a randomized controlled trial (RCT), and the outcome variables of interest were the financial self-efficacy scale (FSES) and financial health score (FHS). Results Using a difference-in-difference regression analysis we found that students in the treatment group were significantly more likely to pay their bills on time after the intervention compared to the control group. Students who had higher than median financial self-efficacy level reported lower stress levels related to COVID-19. Conclusions Digital education programs for college students to improve financial knowledge and behavior could be one strategy, among others, to improve financial self-efficacy particularly among females and help mitigate the adverse impact from unexpected financial hardships.

Money management practices followed by selected homemakers in different stages of life cycle

Research on money management practices followed by selected homemakers was conducted among purposively selected 150 homemakers 50 each from beginning, expanding and contracting stage of family life cycle. Personal interview method with prescheduled questionnaire was conducted to collect information on financial practices followed in family living. The data were analysed statistically by applying Z test and correlation co-efficient test. It was observed from the study that purchasing lists were prepared by more number of homemakers from beginning and expanding stage of family life cycle. More than eighty per cent of the homemakers from beginning (86%), expanding (98%) and contracting (90%) stages of family life cycle felt necessity of maintaining the account of expenses. It was observed that in beginning and expanding stages of family life cycle the homemakers involved in majority of purchases and payments were more as compared to the homemakers from contracting stage of family life cycle.

Investment Pattern, Preferences and Financial Mangement Practices of Wesleyan University-Philippines Employees

This study determined the investment pattern, preferences, and practices of Wesleyan University-Philippines employees with the used of descriptive correlational methods of research, and the data were collected using a researcher-made survey questionnaire. Respondents of the study were the 305 employees chosen purposively.
 The result shows that most of the respondents belonged within the age range of 19 – 28 years old, married, a college graduate with 1 – 6 years in service, permanent, had a monthly income of 10000-21000 and had other sources of income from their husband/wife income.
 Likewise, most of the respondents had a saving for an emergency and unforeseen circumstances, had an investment and invested 1 – 5 percent of their income. Most of them had a saving account, intended to invest the money to more than five years in which the principal amount is secured, invested in the private sector, and expected to grow steadily.
 Similarly, this study found out that the respondents sometimes practice the five indicators of financial management practices used in the study.
 Moreover, profile variables were significantly correlated with financial management practices. Age, number of years in service, employment status, monthly income, and other sources of income were significantly associated with money management practices. Similarly, a number of years in service were correlated considerably with savings management practices. Finally, age, employment status, and other sources of income were significantly associated with investment management practices.
 Further, there is a significant difference in the respondents' assessment in all indicator of financial management practices.

Modifiable Factors for the Trajectory of Health-Related Quality of Life among Youth Growing Up in Poverty: A Prospective Cohort Study.

Poverty is a decisive risk factor for poor health and well-being, and its negative consequences could be more severe and substantial among children. Understanding the factors associated with improvement in well-being is vital to design interventions. This is a prospective cohort study of 546 youth growing up in families in poverty in Hong Kong. All participants were assessed twice, in 2016 and 2019, in regard to their physical and mental health, as well as for different economic, social, and psychological variables. The results show that approximately 41% experienced an improvement in their health-related quality of life (HRQoL). Findings from the logistic regression analyses suggest that the health and development of youth in poverty may be restored by promoting social support, a sense of hope, future orientation, job stability, and money management practices, such as savings, during childhood and adolescence. The findings shed light on future policy making and forms of service development that could help to end the vicious cycle of poverty and hampered health.

ENTREPRENEURIAL MONEY MANAGEMENT PRACTICES AND COMPETITIVE OUTCOMES OF SMALL AND MEDIUM ENTERPRISES

This study aimed at determining the effect of entrepreneurial money management practices on competitive outcomes of small and medium enterprises. The specific objectives of the study were to; assess the entrepreneurial money management practices of small and medium enterprises, determine the competitive outcomes of small and medium enterprises and to determine the relationship between entrepreneurial money management practices and competitive outcomes of small and medium enterprises. The study used both descriptive, cross-sectional and correlation research designs. The target population was 324 SMEs trading in Trans Nzoia county out of which 179 were sampled to participate in this study. The sampling method used was stratified and simple random sampling. The research instruments reliability test had a Cronbach alpha value of 0.825 which was above the threshold. The study findings indicated that entrepreneurial money management practices among SMEs was moderately embraced affecting their competitive outcomes. The study results also indicated that competitive outcomes of SMEs were dismal affecting their graduation into large enterprises. It was also found that there existed a positive significant relationship between entrepreneurial money management practices and competitive outcomes of SMEs. The study concluded that for SMEs to realize their competitive outcomes of increasing their respective product portfolio and increased revenue, it’s imperative that they apply entrepreneurial money management practices of prioritized financing, budgeting and adequate working capital to graduate SMEs to large enterprises. The study recommended that SMEs to allocate the realized financial resource prudently to exploit opportunities available to them to remain competitive. The study also recommended that SMEs should prioritize on innovations to differentiate themselves in the overcrowded market by expanding their bundle of product portfolio and also the government to formulate workable SME policies which impart entrepreneurial money management practices to improve SME performance.
 Keywords: Entrepreneurial, Money Management Practices, Competitive Outcomes, Small and Medium Enterprises.

Business Education: Key for Achieving Financial Inclusion in Palestine

Financial education is the process of building knowledge, skills and attitudes to become financially literate. It is meant to educate people on good money management practices with respect to earning, spending, saving, borrowing, and investing. Financial education is meant to enable people to shift from reactive to proactive decision-making and work towards fulfilling their financial goals. By broadening people’s understanding of financial options and principles, financial education builds skills to use financial products and services, and promotes attitudes and behaviors that support more effective use of scarce financial resources. Financial education builds skills to use financial products and services, and promotes attitudes and behaviors that support more effective use of scarce financial resources and financial inclusion. The results of this work show that low levels of financial inclusion are associated with lower levels of financial literacy. Recent research permitted to identify various ways in which policy makers are developing financial education policies for financial inclusion.

Manage Your Money, Be Satisfied? Money Management Practices and Financial Satisfaction of Couples Through the Lens of Gender

There is a difference between who brings in income, who spends and manages money, and who finally benefits. All these aspects are important in determining how satisfied spouses are with their individual financial situation. Relying on Swiss Household Panel (SHP) data from 2004 to 2013 (N = 1,810 couples), this assumption is tested by analyzing how women’s relative income and the management of economic resources within couples affect women’s and men’s financial satisfaction in the household. Results show that a change in the composition of total income in favor of women directly increases their financial satisfaction and net of household income, while men’s financial satisfaction increases up to the point at which women earn more than one third of the total income. Money management regimes serve as an important additional tool in creating and compensating for (dis) advantage between partners. The results are discussed in the context of traditional gender norms in the Swiss Society.

Online Financial Education Programs: Theory, Research, and Recommendations

Technological advances have created unprecedented opportunities for online financial education that can be used to improve financial literacy and money management practices. While online financial education programs have become popular, relevant research and theoretical frameworks have rarely been considered in the development of such programs. This article synthesizes lessons from literature and theories for the development of an effective online financial education program. Drawing from literature on financial literacy education and online education, implications and recommendations for integrating technology into online financial education programs for adults are discussed.

A Brief Money Management Scale and Its Associations With Personality, Financial Health, and Hypothetical Debt Repayment

Money management is essential for financial health, and more research is needed to better assess people’s money management practices. Therefore, we factor-analyzed 205 scaled questions from previous money management measures to select the best items and examined their internal consistency and convergent validity. Our resulting 18-item Brief Money Management Scale and its factors (management of cash, credit, savings, and insurance) replicate and clarify previous relationships between types of money management and financial outcomes as well as personality and demographic antecedents. Furthermore, this scale is reliable and predicts participants’ hypothetical debt repayment behavior, suggesting concurrent validity. We discuss how future studies can use this multifaceted measure of money management to better understand the antecedents and consequences of different financial decisions.

Problems and opportunities of women SHGs in entrepreneurship development

Empowerment of rural women has emerged as an important issue in today. The economic empowerment of rural women is being regarded as independence for rural women. Rural women are becoming economically independent and providing employment opportunities to others through involving in micro entrepreneurship. Women's entrepreneurship contributes to the economic well-being of the family and communities and also reduces poverty. Self-help groups (SHGs) have smoothened the way for economic empowerment. Economic empowerment of rural women led to development of family, community, society, state and nation therefore it is very necessary to give keen of our attention over empowerment of women in the rural area for the real development of our country in all spheres. An SHG entrepreneur is someone that organizes, manages, and assumes the risk of a business enterprise. Today, more women are breaking free from the traditional, gender-specific roles and venturing into the business world. This study deals with empowerment of rural women through micro entrepreneurship development among rural women. This study was carried out to know the socio- economic background of the women SHG's, their knowledge, skills and earning capacity. The study also looked at the money management practices of women SHG members and their problems. On the basis of the findings that revealed limited knowledge of the women regarding value for savings, account keeping and financial liabilities. Only a few SHGs were found economically proficient.

The Impact of Family Income on Students Financial Attitude

This research explores the differences on Financial Attitudes among Albanian university students based on their family income. The main objectives of this study are: i) firstly, to assess students attitude towards money management practices; ii) to examine whether their financial attitude differs based on the level of family income; and iii) finally, to present some conclusions and recommendations for parents, practitioners and students in way that they can shape healthy financial habits. An instrument comprised of specific and personal questions is administered to 637 students from five public and two private universities in Albania. The consistency and reliability of the survey is tested by the dimension reduction technique and Cronbach Alpha test. Data analysis is conducted based on analyse of variance. The results exhibits that Albanian university students do not have good financial attitude. Parental income is found to influence their children attitude towards money issues. Students with low parental income are discovered to show better financial attitude in comparison with other categories. This research recommends parents and other practitioners to teach proactively students about money smart.

Meaning, values and attitudes regarding money - an insight into the minds of very senior executives and leading entrepreneurs of India

The study seeks to identify the basic values and attitudes of senior executives with private organisations and leading entrepreneurs regarding their views on topics that pertain to money and its management. Based on their experiences, perceptions and beliefs, the values and attitudes that are of utmost importance to them regarding money are identified. This study is of a qualitative nature. Data was based on the interviews of senior executives and leading entrepreneurs of India, which appeared in The Economic Times newspaper, over a period of one year. These interviews were based on a semi-structured questionnaire. The interview data was analysed using open coding, a qualitative form of content analysis. The results showed that the themes regarding the money management practices differed among the entrepreneurs and the senior executives. This has implications for the financial service professionals as the understanding of the investor behaviour is crucial for the purpose of giving more personalised advice and building trust. This study presents a descriptive analysis of the values and attitudes of senior executives and leading entrepreneurs regarding money and its management. The study offers new insights on the beliefs and perceptions of the individuals and is useful from the point of view of understanding the affluent financial consumer.

Over-indebtedness and the interplay of factual and mental money management: An interview study

Previous research has shown that money management contributes to over-indebtedness. This article sheds new light on this relation by looking at factual money management and its mental underpinnings, mental accounting. In a conceptual model we propose that fuzzy factual and mental money management practices aggravated by lack of congruency between factual and mental structures play an important role in over-indebtedness. Twenty-five in-depth interviews deliver preliminary support for this proposition. Successful financial control seems to build on efficient and inter-coordinated factual and mental money management. This reduces the willpower necessary for controlling financial behavior and helps to prevent and fight over-indebtedness.

Money Resolutions, a Sketchbook

The purpose of this paper is to identify those broad behaviors and mental ideas that commonly underpin poor people's money management practices. A metaphorical image is associated with each of these behaviors and mental ideas in order to make them come to life more strongly. The aspiration is to depict them in a way that poor people themselves could understand and relate to.

One Pot or Two Pot Strategies? Income Pooling in Married and Unmarried Households in Comparative Perspective

This paper investigates money management practices in private households. It compares married and cohabiting couples across four countries with different levels of institutionalization of cohabitation and different welfare regimes (Denmark, Spain, France, and the United States). Using data from the International Social Survey Program 2002 module on Changing Family Roles (ISSP 2002), this study shows that the legal status of the union is one of the strongest predictors of the money pooling practices in all four countries. Cohabitors tend to choose independent money management more often than married couples and this finding holds even after controlling for a range of socio-economic and attitudinal characteristics. Moreover, the effect of the union type is rather uniform across these four countries despite their institutional differences.

Household financial organisation and discursive practice: Managing money and identity

Research on the intra-household economy has gained great impetus over the last 20 years. There has been particular interest in the ways in which financial resources are distributed among individual household members. This, in turn, has led to the delineation of different systems of financial management. Methodologically, work in this domain has been informed by large-scale surveys and interview studies. The present paper contends that, due to their analytic reliance on the individual perceiver, current methods cannot fully account for the contradictions that are raised by key findings in the field. It is argued that a discursive approach, with the critical language awareness associated with it, might not only be able to reconcile some of these paradoxical findings but also provide the basis for a more critical understanding of the social–psychological processes underlying household money management. The potential contribution of a discursive approach to studying the intra-household economy is illustrated by drawing on group interview data. This calls attention to (a) the inherent variability of people's accounts regarding their money management practices and (b) the identity processes involved in such ‘money talk’.