247P
The Influential Role of Marriage and Family Composition on Financial Life Values
Financial management literature suggests that individuals manage money entering the household in a variety of ways which may be shaped by family composition. This study addresses the influences of marital status and children and grandchildren residing inside and/or outside of the home on financial decision making. Two aspects of making financial decisions, psychological and sociological, serve as the focus of the study. Both of these important characteristics of making financial decisions were measured utilizing the National Endowment for Financial Education‘s Life Values study which characterizes psychological aspects as Inner Life Financial Values and sociological aspects as Social Life Financial Values.
Methods:
This study utilized the Life Values data set, which includes the Life Values Quiz (Smart About Money, 2013). Data collection was coordinated and funded by the National Endowment for Financial Education (NEFE) and was guided by the overarching goal of further understanding financial life values to better inform values-centered financial education curriculum. The study was carried out via a web-based survey created utilizing Qualtrics Research Suite (www.qualtrics.com). A hyperlink to the study was distributed among various online access panels comprised of e-mail lists of volunteer opt-in panelists. A total of 35,000 e-mails were disseminated with a link to the study; 4,964 respondents initiated the survey. Listwise deletion procedures were utilized to address missing data. The utilization of listwise deletion resulted in a valid sample size of N = 2,812.
Results:
Results were analyzed utilizing one-way analysis of variance. Post hoc analyses were also examined. With respect to Inner Financial Life Values, results indicated significant differences between groups. This research suggests that psychological aspects of financial values may differ for individuals in committed relationships (i.e. married or living with a partner) as compared to individuals who are in non-committed relationships (i.e. divorced or have never been married). Additionally, the addition of children within a committed relationship may further contribute to the shaping of psychologically-based financial values. An examination of Social Financial Life Values indicated no significant differences between groups. A lack of differences between groups may be indicative of a reliance on social supports, such as extended family and friends, for individuals in non-committed relationships.
Implications:
The findings from this study suggest that being in a committed relationship has a significant impact on the way financial decisions are made and values ascribed to money related decisions. The findings also suggest that children, specifically those residing within the home, have an impact. Because social workers continue to recognize the importance of addressing the financial concerns of their clientele, it is important to recognize the role of family composition and other social supports on financial decision making. Social workers, as professionals who often serve low-income and often debt-laden populations, need an express understanding of financial literacy concepts and how best to address these with clients served.