Tahira K. Hira

The Effects of Perceived Locus of Control and Perceived Income Adequacy on Satisfaction with Financial Status of Rural Households

The purpose of this study is to examine the relationships among selected socioeconomic variables — perceived locus of control, perceived income adequacy, and satisfaction with financial status. Results of the study indicate that age, household income, household net worth, perceived locus of control, and perceived income adequacy are significantly related to satisfaction with financial status. Household income and household net worth have indirect effects on satisfaction through perceived locus of control and perceived income adequacy. Perceived locus of control also has an indirect effect on satisfaction through perceived income adequacy. These findings suggest that counselors and educators should emphasize the importance of perceptions of income adequacy and control over financial aspect in their courses and programs.

Assessing the causal relationship among communication, money management practices, satisfaction with financial status, and satisfaction with quality of life

The purpose of the study reported here is to assess the causal relationship among communication, money management practices, satisfaction with financial status, and quality of life. The data used were collected in 1986 through personal interviews. The sample size is 123 interviewees, and the unit of analysis is the households money manager. Results show that the money managers who are more knowledgeable about financial matters, and those who are highly indebted, communicate more about money matters and report more money management activities. Satisfaction with financial status is caused mainly by economic factors (net worth and savings). The demographic factors that influence satisfaction with quality of life are marital status and household size. Satisfaction with quality of life is also predicted by income and satisfaction with financial status.

Gender Differences in Investment Behavior

The objectives of this chapter are to identify significant personal and environmental factors that influence investment behavior and to specify the investment decision-making process, particularly with respect to female investors. It is expected that the results presented here will help readers to consider new approaches to investment education. Specifically, this chapter aims to: (a) explore differences between men and women in a variety of financial behaviors, investment decision-making process; (b) identify patterns of investment involvement and learning preferences; and (c) determine socio-economic and behavior factors that explain gender differences in specific investment behavior (portfolio diversification).

Knowledge, Beliefs, and Practices in the Use of Credit Cards

The purpose of this study is to investigate the relationships arnong knowledge, beliefs, and practices in the use of credit cards. Data were collected from 198 household money managers in a midwestem town during 1982. Those respon dents with high levels of credit card knowledge believe credit cards should be used more for installment reasons than convenience reasons. Those respondents who believe credit cards should be used for installment reasons are inclined to use more credit cards and to accumulate finance charges more often. Those with more education and income have a higher level of knowledge than those with less education and income. The older respondents and those with low incomes believe that credit cards should be used for convenience reasons. Those with high education levels and large household sizes use more credit cards and accu mulate finance charges more often.

Financial management: Development of scales

This study is a contribution to the development of family resource management scales, specifically financial management scales. Principal axis factor analysis, with varimax rotation, is used to assess underlying relationships in 23 family resource management variables related to time and money resources. Reliability and content, construct, and criterion-related validity of the scales are assessed. Two scales that are reliable and have some degree of validity are developed: frequency of financial problems and frequency of financial management. The scales could be used in future research, teaching, or counseling to organize financial management concepts.

Net Worth and Financial Satisfaction as a Function of Household Money Managers' Competencies

The purpose of this study was to test hypotheses derived from the systems theory of family resource management in the area of family financial management. Money managers in 123 households in central Iowa were interviewed during fall 1986. A path analysis model based on multiple regression analyses was tested. The typical household money manager was a married, 49-year-old woman in a two-member household with a median after-tax income of

Factors associated with expectation of household's future financial condition

20,760. Money man agers who were more knowledgeable practiced more recommended planning and implementing behaviors than less knowledgeable money managers. House holds were more likely to have a higher level of net worth if the money manager used optimum planning practices and were more satisfied if the money manager used recommended implementing practices. Because this study suggests that money managers who use the principles of financial management do achieve greater net worth and satisfaction, educators should target their efforts toward the identified competencies.

Know Your Subject: A Gendered Perspective on Investor Information Search

Path analysis is used to examine the causal relationships among selected objective and subjective factors associated with a households expectation of future financial condition. Results indicate that respondents who perceive the effect of changes in the external environment on their own households financial condition as positive are younger, have higher net worth, perceive more internal control over their situation, and report that most of the changes in the external environment are positive. Respondents who are younger, have higher income, perceive more internal control over their situation, and believe the effect of changes in the external environment on their households financial condition are positive are more likely to be optimistic about their financial future. It is important that educators and financial advisors recognize the significant role perception of being in control plays in determining expectations of future financial condition.

Changes in financial status influencing level of satisfaction in households

What causes men and women to behave differently in financial matters? Gender differences in financial decisions and behaviors have been well-documented in popular media and the managerial press. The academic literature supports the notion of gender differences in investing, pointing out that male investors tend to make the high-consequence financial decisions in households and are the more risk tolerant and self-confident investors. Yet few studies have empirically connected these conditions to differences in the information acquisition behavior of male and female investors. This paper examines whether differences exist in the information sources and the frequency of their use among male and female investors and identifies demographic and attitudinal characteristics that could cause differences in information search strategies.

Financial Issues of Women

This study explores the impact of changes in family financial status over a four year period on level of satisfaction with various aspects of household finances. Data were collected through personal interviews with 123 families in 1982 and 1986. Information was obtained on household income, assets, liabilities, and on the satisfaction of the money managers with seven aspects of household finances. Two-tail pairedt-tests were used to compare differences in financial and satisfaction variables between the two time periods. Regression analyses were applied to ascertain factors affecting the satisfaction of the money managers. The financial status of households improved during the 4 year period as reflected by net worth. The mean net worth, with and without real estate, increased significantly during this time period. In spite of this improvement, money managers are less satisfied with various aspects of their household finances.