Bridging Disciplinary Boundaries (January 11 - 14, 2007)

Purpose: Social support, particularly material support, from friends and kin plays an important role in family well-being. Among welfare and low-wage earning single mothers, in-kind contributions distributed among families are critical elements to coping and survival, according to qualitative research by Edin and Lein (1997). Quantitative studies also points to the importance of kin support among families, particularly among low-income single mothers (Hofferth, 1984; Hogan, Eggebeen, & Clogg, 1993; Hogan, Hao, & Parish, 1990; Lee & Aytac, 1998; Teitler, Reichman, & Nepomayaschy, 2004). In light of the importance of resource exchange among single mothers, the purpose of this study is to examine the factors that influence financial transfers among single mothers with young children. We examine how a range of family and socioeconomic factors influence financial transfers as well as variation among Hispanics, Blacks, and Whites. Methods: This study is based on data from the Fragile Families and Child Well-being longitudinal survey. Initiated in 1998 after the implementation of welfare reform, Fragile Families is a national dataset of 4,898 mothers and their newborn babies in large US cities. This study uses data collected from single mothers when their children were approximately 3 years of age. After presenting descriptive data on financial transfers among single mothers of young children, the analysis uses multinomial regression to examine financial transfers, modeling race/ethnicity, family characteristics, socioeconomic resources, and a full model including all variables. Results: The findings show that single mothers of young children regularly engage in informal financial transfers. Over half (54%) of single mothers participated in some type of monetary transfer (giving or receiving money) with family and friends during the past year. Approximately one-third of mothers (32.4%) received money in the previous year averaging $1,145. Slightly over one-third of mothers (35.5%) provided monetary assistance to others, averaging $671. Multivariate analyses revealed racial and ethnic differences in money transfers. Blacks were more likely to participate and Hispanics less likely to participate in giving and receiving than were Whites. Both family characteristics and socioeconomic resources contributed to understanding monetary transfers. Blacks' lower socioeconomic status, particularly their lower incomes, increased their likelihood of transfers compared to Whites. For Hispanics, being an immigrant, having a low level of education, and having a low income lowered the likelihood of transfers, thus partly explaining lower levels of transfers in this group. For all groups, experiencing material hardship was predictive of financial transfers among both those receiving monetary transfers and those giving them. Implications: Financial transfers among families and friends are an important source of support for single mothers with young children. The higher levels of participation among Blacks compared to Whites, even when controlling for family and socioeconomic characteristics, suggests the important function of monetary support among Blacks. However, informal transfers cannot be expected to provide an adequate safety net to substitute for social welfare assistance. Given that facing hardship increased the likelihood of receiving monetary help and providing help to others in need is indicative that mothers often participate in financial exchanges as a last resort.