Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Are Two Heads Really Better than one in Intra-Household Financial Management? Evidence on the Financial Behaviour of Couples in Poland

Are Two Heads Really Better than one in Intra-Household Financial Management? Evidence on the... AbstractResearch shows that involvement in intra-household financial management fosters the development of financial literacy and sound financial behaviour. However, little is known about how different intra-couple financial management styles (sole versus joint management) affect the way consumers act when confronted with typical financial matters. Using a simple classifier allowing to distinguish households in which both partners undertake financial activity from those in which only one partner is involved in managing household finances, we applied statistical tests of significant differences and multiple linear regression models to determine whether the financial behaviour of joint participants is distinct from that of sole participants in Poland. Mann-Whitney U test showed that significant differences exist in credit management behaviour, with individuals who share participation performing better behaviour in this domain compared to sole managers. Credit management also appears to be the most problematic domain of household financial management where undesirable behaviour is the most likely. However, closer inspection with linear regression revealed that these differences can be attributed to socio-demographic variables such as age, place of residence, income, and number of dependent children. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png South East European Journal of Economics and Business de Gruyter

Are Two Heads Really Better than one in Intra-Household Financial Management? Evidence on the Financial Behaviour of Couples in Poland

Are Two Heads Really Better than one in Intra-Household Financial Management? Evidence on the Financial Behaviour of Couples in Poland

South East European Journal of Economics and Business , Volume 17 (1): 16 – Jun 1, 2022

Abstract

AbstractResearch shows that involvement in intra-household financial management fosters the development of financial literacy and sound financial behaviour. However, little is known about how different intra-couple financial management styles (sole versus joint management) affect the way consumers act when confronted with typical financial matters. Using a simple classifier allowing to distinguish households in which both partners undertake financial activity from those in which only one partner is involved in managing household finances, we applied statistical tests of significant differences and multiple linear regression models to determine whether the financial behaviour of joint participants is distinct from that of sole participants in Poland. Mann-Whitney U test showed that significant differences exist in credit management behaviour, with individuals who share participation performing better behaviour in this domain compared to sole managers. Credit management also appears to be the most problematic domain of household financial management where undesirable behaviour is the most likely. However, closer inspection with linear regression revealed that these differences can be attributed to socio-demographic variables such as age, place of residence, income, and number of dependent children.

Loading next page...
 
/lp/de-gruyter/are-two-heads-really-better-than-one-in-intra-household-financial-LjICjhLL0w
Publisher
de Gruyter
Copyright
© 2022 Andrzej Cwynar, published by Sciendo
ISSN
2233-1999
eISSN
2233-1999
DOI
10.2478/jeb-2022-0007
Publisher site
See Article on Publisher Site

Abstract

AbstractResearch shows that involvement in intra-household financial management fosters the development of financial literacy and sound financial behaviour. However, little is known about how different intra-couple financial management styles (sole versus joint management) affect the way consumers act when confronted with typical financial matters. Using a simple classifier allowing to distinguish households in which both partners undertake financial activity from those in which only one partner is involved in managing household finances, we applied statistical tests of significant differences and multiple linear regression models to determine whether the financial behaviour of joint participants is distinct from that of sole participants in Poland. Mann-Whitney U test showed that significant differences exist in credit management behaviour, with individuals who share participation performing better behaviour in this domain compared to sole managers. Credit management also appears to be the most problematic domain of household financial management where undesirable behaviour is the most likely. However, closer inspection with linear regression revealed that these differences can be attributed to socio-demographic variables such as age, place of residence, income, and number of dependent children.

Journal

South East European Journal of Economics and Businessde Gruyter

Published: Jun 1, 2022

Keywords: Intra-household financial management; financial behaviour; credit management; D12; G51; G52; G53; J16

There are no references for this article.