Financial stress and financial management roles: Trajectories of couples' financial disagreements

Abstract

Using the family stress model and marital bargaining theory, we aimed to investigate how financial stress and financial management roles are associated with both partners' (men's and women's) initial levels and rates of changes in financial disagreements over time. To test this, we used dyadic latent growth curve analyses obtained from 2158 German heterosexual couples over four waves or a 6‐year time span from the Panel Analysis of Intimate Relationships and Family Dynamics dataset. Financial stress and discrepant or unclear financial management roles were associated with higher initial financial disagreements in both partners. Only discrepant financial management roles were associated with lesser declines in women's financial disagreement trajectories. Additionally, in the context of greater financial stress, discrepant financial roles were associated with ever higher initial financial disagreements in women. Practitioners working with couples in financial distress should consider exploring the couple's level of financial stress as well as specialized and discrepant views on financial role division.

The Role of Family in Managing Financial Stress and Economic Hardship

“…The study revealed that families often engage in joint decision-making, budget creation, and income pooling as primary strategies to manage financial stress. These practices align with the findings of Morgan, Lim, and Washburn-Busk (2021), who emphasized the importance of shared financial responsibilities in reducing financial disagreements and stress within couples. By pooling resources and making collective decisions, families can better manage their limited financial resources and minimize conflicts (Morgan et al, 2021).…”

“…They found that strong family bonds and effective financial management practices can mitigate the adverse effects of economic pressure (Azzara et al, 2022). This aligns with the findings of Morgan, Lim, and Washburn-Busk (2021), who explored financial stress and financial management roles within couples, revealing that open communication and shared financial responsibilities can reduce financial disagreements and stress (Morgan et al, 2021).…”

When couples fight about money, what do they fight about?

“…Thus, these themes might reflect research showing that couples who pool finances tend to report more relationship satisfaction (e.g., Addo & Sassler, 2010; Kenney, 2006) and fewer financial conflicts (Gladstone et al, 2022). The “terms of arrangement” theme also reflects work showing that discrepant financial roles (i.e., partners giving conflicting reports of who is responsible for managing finances in the relationship) are linked to more financial disagreements (Morgan et al, 2021).…”

“…When relationship partners are having “money conflicts” (Papp et al, 2009), “financial conflicts” (Saxey et al, 2022a) or “disagreements about finances” (Dew et al, 2012; Morgan et al, 2021), what exactly are they fighting about? Information about the content of financial conflicts can be important to guide research towards understudied areas of financial conflicts.…”

When couples fight about money, what do they fight about?

“…When relationship partners are having "money conflicts" (Papp et al, 1996), "financial conflicts" (Saxey et al, 2022a) or "disagreements about finances" (Dew et al, 2012;Morgan et al, 2021), what exactly are they fighting about? Information about the content of financial conflicts can be important to guide research towards understudied areas of financial conflicts.…”