Davis, E. P. & Weber, J. A. (1990). Patterns and obstacles to financial management. Financial Counseling and Planning, 1, 41-51.
Patterns and Obstacles to Financial Management
Elizabeth P. Davis1and Judith A. Weber2
This study investigated households’ use of four recommended financial management practices and
possible obstacles to using those practices. These four practices included budgeting, keeping
records of expenditures, comparing the records to the budget, and estimating net worth. Data
were collected from a sample of non-metropolitan households living in Kansas. Results indicated
that keeping records of expenditures was the most common of the four practices, followed by
budgeting, comparing records to the budget, and estimating net worth. All four practices were
used by 37% of the sample. Respondents who did not use a practice were asked why they did
not. Irregularity in income and expenses was the most frequently reported obstacle to budgeting.
Respondents persistently reported that they “didn’t need to” use the other three management
practices. Implications for financial education are discussed.
Key Words: Consumer finance, Family budgets, Budgeting
Affiliation at time of publication:
1. Elizabeth P. Davis is Assistant Professor, Department of Consumer Science and Education,University of Nebraska-Lincoln, 123 Home Economics Building, Lincoln, NE 68583-0801. 402 472-7992. Fax: 402 472-9170.
2. Judith A. Weber is Extension Agent-Home Economics, Cooperative Extension Service, Filmore County, Nebraska.
Elizabeth P. Davis is Associate Professor, Department of Consumer Science and Education,University of Nebraska-Lincoln.
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