FMST 201: Chapter 7: Families & Financial Resources

What do adults want before they marry?

Financial stability, financial independence, and expression of career goals

What factors influence cohabiting partners to get married?

Employment hours, occupational prestige, and female savings

Occupational prestige

Assessment of the occupational category, not the occupational title

How do female savings affect marriage decisions?

Higher savings increase the likelihood of women wanting to marry

Why are female savings important in relationships?

They enhance women's economic contribution and provide security and stability

How do macro-level economic policies affect family formation?

They influence whether and when families form

What economic conditions increase family formation?

Strong economy and low unemployment

What financial policies impact family formation?

FMLA, child tax credit, subsidized childcare

What is the Social Security Student Benefit Program (SSSBP)?

A program providing federal educational subsidies to children of disabled, retired, or deceased parents

What impact did SSSBP have?

Lowered the age of marriage and childbearing for women

What factors influence non-cohabitators to marry?

Car value, consumer debt, and income

Why does car value matter in marriage decisions?

It reflects reliability and maintenance costs

How do men and women differ in valuing cars?

Women value functionality/practicality; men value performance

What is financial communication in relationships?

In-depth discussion of financial strength and position

What is a common issue with financial communication?

People are reluctant to discuss finances with partners

Conspicuous consumption

Accumulating goods, services, and debt to signal economic stability

Who values economic provision more?

Women

How do men react to financial competition?

They feel more distress if a rival has better financial resources

What are the steps in the family financial decision-making process?

Establish values, gather information, assess costs/alternatives, make a decision

What influences family financial decision-making?

Culture and gender roles

Who traditionally makes financial decisions in families?

Men, often acting unilaterally

What factors can shift financial decision-making power?

A woman's age and the type of financial situation

How do older women influence financial decisions?

They have more control and voice

When do women have more financial power in households?

When decisions involve daily financial tasks

Do both spouses participate in financial decisions?

Yes, but influence varies

When do spouses have more influence?

When decisions relate to their assigned roles

What is the cooperative bargaining framework?

A system where spouses negotiate financial decisions

What determines greater financial influence between spouses?

Having more resources or responses

What increases women's financial decision-making power?

Higher education and workforce participation

What education trend exists among married mothers?

They are increasingly more educated than their husbands

When do women often pursue more education?

When children are ages 10-18

How does degree level affect women's financial power?

Higher degrees increase decision-making power

Which education level shift gives women the most influence?

From high school to undergraduate

What advanced degrees increase influence?

Master's, PhD, JD, MD

How does income share affect women's financial involvement?

More income share increases involvement in savings and investments

How do women differ from men in financial risk?

Women are less likely to take risks

What are common financial traits of women?

Risk-averse, future-oriented, less financial literacy

Who handles day-to-day financial management?

Women

Who handles long-term financial decisions?

Men

What financial areas do men specialize in?

Investments and taxes

What financial areas do women focus on?

Budgeting, bills, and short-term planning

What decisions do high-earning women influence more?

Retirement age, location, and major purchases

How do children affect financial resource accumulation?

More children reduce wealth during working years but increase retirement savings

How does having children affect financial risk-taking?

More risk early in life, less later

How does child gender affect financial risk?

Families with only girls take more risks

How do divorced parents handle financial decisions?

Joint custody leads to different decision-making behaviors

Who tends to take high-risk financial actions?

Men and single mothers with sons

At what age do children participate in financial decisions?

Around age 16 and older

What factors affect children's participation in decisions?

Family structure, communication, personality, birth order, and type of purchase

What type of family structure increases child involvement?

Egalitarian families with open communication

What personality traits improve early decision-making?

Introversion and being an only child

Which purchases do children influence the most?

Technology

What is the second most influenced purchase category for children?

Social status items

What is the least influenced category for children?

Clothes, shoes, and food

Which parenting style best integrates children into financial decisions?

Authoritative parenting

Laissez-faire parenting

A style with no clear boundaries or guidance

How are emotions handled in laissez-faire parenting?

Everything is expressed regardless of appropriateness

How do children from laissez-faire homes perform early on?

They make superficial financial decisions well

How do these children perform as adults?

They make complex decisions, explore options, accept failure, and avoid pressure decisions

What is a major drawback of laissez-faire decision-makers?

Lack of emotion and sympathy

What extreme outcome is associated with laissez-faire regarding the children?

Many become con artists