The benefits of joint and separate financial management of couples

W. Fred van Raaij, Gerrit Antonides () and I. Manon de Groot

Journal of Economic Psychology, 2020, vol. 80, issue C

Abstract: Financial management differs across households with consequences for financial outcomes and well-being of partners in households. A large-sample study has been performed, investigating the relationship between financial management of households and the occurrence of financial problems. To our knowledge, this is the first study on this relationship. Data from both partners was collected on having joint and separate bank accounts, on financial decision making, on drivers of financial management, and on financial outcomes. Based on the data, four financial management styles were derived: syncratic/joint, male-dominant, female-dominant, and autonomous financial management. In the syncratic style, partners have a joint bank account and take most financial decisions together. In the male/female-dominant styles, one partner (husband or wife) takes the main financial decisions. In the autonomous style, both partners have their own bank accounts and make their own decisions. As a conclusion, we find that syncratic financial management and having a joint instead of a separate bank account correlates with fewer financial problems, as compared with male-dominant money management and having separate bank accounts. Deciding together as partners is beneficial for the quality of financial management and for avoiding financial problems.

Keywords: Household; Couple; Decision making; Joint/separate decision making; Financial management style; Income pooling; Financial problem (search for similar items in EconPapers)
JEL-codes: D12 D14 D91 G51 G53 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joepsy:v:80:y:2020:i:c:s016748702030074x

DOI: 10.1016/j.joep.2020.102313

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