The personal financial management practices of young married couples
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Date
2011
Authors
Grobbelaar, Chrizaan
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Free State
Abstract
Afrikaans: ʼn Ekonomiese krisis het geweldige nagevolge vir ʼn land gemeet aan werksverlies, laer inkomste en ʼn afname in beleggings. Verbruikersvraag is ʼn belangrike faktor wat die ekonomie sterk hou, maar wanneer verbruikers oorverskuldig is, hul werk verloor of ʼn verlangsaming in inkomste ervaar, sal dit ʼn afwaartse neiging in die ekonomie tot gevolg hê.
Die skuld-tot-inkomste verhouding van Suid-Afrikaanse huishoudings het oor die afgelope dekade skerp toegeneem. Dit was verbasend maklik om krediet te bekom en daar was nie enige maatreëls getref om te bepaal of individue daartoe in staat sal wees om skuld terug te betaal nie. ʼn Rentekoersverhoging op persoonlike en huislenings het daartoe gelei dat individue te diep in die skuld geraak het. Verbruikers het tans nie net met hoë rentekoerse te kampe nie, maar moet ook uiters hoë lewenskoste in die vorm van elektrisiteitstariewe en petrol- en kospryse trotseer. Verbruikers is tans in ʼn weefsel van skuld en hoë koste vasgevang wat dit vir hulle onmoontlik maak om dit eers te oorweeg om geld te spaar of vir aftrede opsy te sit. Hierbenewens ervaar Suid-Afrika tans ʼn trae spaarkoers wat ekonomiese groei verder kniehalter.
Verskeie finansiële probleme spruit uit ʼn gebrek aan persoonlike finansiële kennis. Finansiële geletterdheid is ʼn belangrike hulpmiddel wat ʼn individu daagliks kan help om wyse finansiële besluite te neem, skuld baas te raak of te vermy en meer te spaar. Sommige volwassenes beskik egter nie eens oor basiese opvoedkundige opleiding nie. Ander faktore wat tot finansiële probleme bydra sluit finansiële fobie, koopdrang en skuld in. Finansiële probleme kan egskeiding, stres en depressie, insolvensie en ʼn afname in werknemerprestasie en -produktiwiteit tot gevolg hê.
Jong, getroude paartjies is geneig om mekaar se uiteenlopende idees oor geld en hulle onderskeie geldbestuurspersoonlikhede te ignoreer. Dit is ʼn heelwat groter uitdaging om finansies gesamentlik as ʼn egpaar te bestuur as wat dit is om dit individueel te doen. Elke eggenoot het sy/haar eie persepsie oor geld en toon verskillende gedrag en houdings ten opsigte van sy/haar finansies. ‟n Gebrek aan kommunikasie oor hul verskille kan argumente by egpare veroorsaak. ʼn Egpaar se huweliksgeluk hang gedeeltelik van hulle persoonlike finansiële bestuurspraktyke af. Huweliksongeluk kan egskeiding tot gevolg hê.
Die oogmerk van hierdie studie was om inligting in te samel oor die finansiële bestuurspraktyke van jong egpare in die Bloemfontein gebied tydens 2010 en 2011. Die sekondêre doelwitte was daarop gerig om die belangrikheid van gesonde finansiële bestuur vir ʼn individu en binne ʼn huwelik te evalueer. Verder, om te bepaal hoe jong egpare hul finansies bestuur; kommunikeer en verskil; en wat hul gedrag, houdings en persepsies jeens finansies is. Die teikenbevolking was 75 egpare; dit wil sê, 150 respondente het die vraelys voltooi.
Die resultate toon dat ongeveer 30% van die respondente nooit geld spaar of vir aftrede opsysit nie. Vergeleke met die literatuur het 9 uit elke 10 individue nie genoeg geld om van te leef as hulle hul aftreeouderdom bereik nie. Dit verplig hulle om aan te hou werk. Een uit elke twee respondente het ʼn kredietkaart en klererekenings, met voertuigfinansiering kort op die hakke.
Egpare verkies om besluitneming ten opsigte van hul geldsake te deel. Egpare wat voortdurend oor geldsake verskil beloop 11.5%. ʼn Eggenoot se skuldsituasie is die vernaamste bydraende faktor tot stres in ʼn huwelik.
Altesaam 20% van die respondente was uiters negatief oor hulle persoonlike finansies en 59% weier om ʼn finansiële adviseur oor geldsake te nader, terwyl 36,7% van die respondente ontevrede was met hulle heersende finansiële omstandighede.
Elke eggenoot het ʼn hoër agting van sy/haar eie, persoonlike finansiële bestuurspraktyke getoon vergeleke met hulle maats se beskouing daarvan. Oor die algemeen het mans en vroue die meeste vertroue in die man se persoonlike finansiële bestuurspraktyke.
English: An economic crisis has severe consequences for a country in terms of high job losses, lower income and a decrease in investments. Consumer demands are an important factor to help keep the economy strong, but when consumers are over-indebted, losing their jobs or experiencing a slowdown in income, it will cause a downward trend in the economy. A severe increase in the debt-to-income ratio of households took place in South Africa the last decade. Credit was extremely easy to obtain and no measures were in place to determine whether individuals were able to repay the debt. An increase in interest rates on personal and home loans led to individuals becoming over-indebted. Currently consumers not only face high interest rates, but also extremely high cost of living in terms of electricity rates, and petrol and food prices. At present consumers thus find themselves strangled in a web of debt and high costs, which make it impossible for them to even think of putting money aside for savings and retirement. In addition, South Africa is currently experiencing a slow savings rate, which also causes a set-back on economic growth. Many financial problems originate from the lack of personal financial knowledge. Financial problems result in divorce, stress and depression, bankruptcy and a decline in employee performance and productivity. Yet, some adults do not even have basic educational training. Other factors contributing to financial problems include financial phobia, compulsive buying behaviour and debt. Financial literacy is an important tool for daily personal financial management in that it helps an individual make wise financial decisions, overcoming or avoiding debt and increasing savings. Young married couples tend to ignore one another‟s different ideas about money and their different money management personalities. Managing finances as a couple is much more challenging than doing so individually. Each spouse has a different perception of money and reveals different behaviours and attitudes towards their finances. Lack of communication between couples on their differences can cause arguments between them. A couple‟s marital satisfaction depends partly on their personal financial management practices. Marital dissatisfaction can lead to divorce. The aim of this study was to obtain information regarding the young, married couples‟ personal financial management practices of living in the Bloemfontein area during 2010 and 2011. The secondary objectives aimed to evaluate the importance of sound financial management for an individual or within a marriage. In addition to this, to determine how young married couples manage their finances, communicate and disagree, and the behaviours, attitudes and perceptions they have regarding their finances. The target population consisted of 75 married couples; in other words, 150 respondents completed the questionnaire. The results show that approximately 30% of the respondents never put money aside for savings and retirement. Compared to the literature, nine out of every 10 individuals do not have enough money to live on when they reach their retirement age, which forces them to continue working. One out of every two respondents has a credit card and clothing accounts, and vehicle finance was close to this figure. Couples prefer to share the decision-making with regards to their financial matters in the household. Couples who constantly disagreed on financial matters amounted to 11,5%. A spouse‟s debt situation is the biggest contributor to financial stress in a marriage. Of the total respondents, 20% were extremely negative about their personal finances and 59,3% refuse to consult a financial advisor regarding financial matters, while 36,7% of the respondents were dissatisfied with their present financial situation. Each spouse has a higher esteem of their own personal financial management practices compared to how their partners perceive their management practices. Overall, the confidence in the husband‟s personal financial management practices are rated the highest by both husband and wife.
English: An economic crisis has severe consequences for a country in terms of high job losses, lower income and a decrease in investments. Consumer demands are an important factor to help keep the economy strong, but when consumers are over-indebted, losing their jobs or experiencing a slowdown in income, it will cause a downward trend in the economy. A severe increase in the debt-to-income ratio of households took place in South Africa the last decade. Credit was extremely easy to obtain and no measures were in place to determine whether individuals were able to repay the debt. An increase in interest rates on personal and home loans led to individuals becoming over-indebted. Currently consumers not only face high interest rates, but also extremely high cost of living in terms of electricity rates, and petrol and food prices. At present consumers thus find themselves strangled in a web of debt and high costs, which make it impossible for them to even think of putting money aside for savings and retirement. In addition, South Africa is currently experiencing a slow savings rate, which also causes a set-back on economic growth. Many financial problems originate from the lack of personal financial knowledge. Financial problems result in divorce, stress and depression, bankruptcy and a decline in employee performance and productivity. Yet, some adults do not even have basic educational training. Other factors contributing to financial problems include financial phobia, compulsive buying behaviour and debt. Financial literacy is an important tool for daily personal financial management in that it helps an individual make wise financial decisions, overcoming or avoiding debt and increasing savings. Young married couples tend to ignore one another‟s different ideas about money and their different money management personalities. Managing finances as a couple is much more challenging than doing so individually. Each spouse has a different perception of money and reveals different behaviours and attitudes towards their finances. Lack of communication between couples on their differences can cause arguments between them. A couple‟s marital satisfaction depends partly on their personal financial management practices. Marital dissatisfaction can lead to divorce. The aim of this study was to obtain information regarding the young, married couples‟ personal financial management practices of living in the Bloemfontein area during 2010 and 2011. The secondary objectives aimed to evaluate the importance of sound financial management for an individual or within a marriage. In addition to this, to determine how young married couples manage their finances, communicate and disagree, and the behaviours, attitudes and perceptions they have regarding their finances. The target population consisted of 75 married couples; in other words, 150 respondents completed the questionnaire. The results show that approximately 30% of the respondents never put money aside for savings and retirement. Compared to the literature, nine out of every 10 individuals do not have enough money to live on when they reach their retirement age, which forces them to continue working. One out of every two respondents has a credit card and clothing accounts, and vehicle finance was close to this figure. Couples prefer to share the decision-making with regards to their financial matters in the household. Couples who constantly disagreed on financial matters amounted to 11,5%. A spouse‟s debt situation is the biggest contributor to financial stress in a marriage. Of the total respondents, 20% were extremely negative about their personal finances and 59,3% refuse to consult a financial advisor regarding financial matters, while 36,7% of the respondents were dissatisfied with their present financial situation. Each spouse has a higher esteem of their own personal financial management practices compared to how their partners perceive their management practices. Overall, the confidence in the husband‟s personal financial management practices are rated the highest by both husband and wife.
Description
Dissertation (M.Com.(Business Management))--University of the Free State, 2011
Keywords
Married people -- South Africa -- Bloemfontein -- Finance, Personal, Households -- Economic aspects -- South Africa -- Bloemfontein, Finance, Personal -- Management