For Better or Worse: Financial Decision-Making Behavior of Married Couples?

This study seeks to investigate the role of international migration in shaping the financial decision-making behaviors of married couples through a comparison of three generations of Turkish migrants to Europe (i.e., movers) with their counterparts who remained in Turkey (i.e., stayers). The data are drawn from a subset of personal data from the 2000 Families Survey, involving 4,215 interviews performed randomly with married individuals nested within 1,713 families. The results suggest that international migration increases the tendency for spouses to jointly decide on their finances by (1) weakening the intergenerational transmission of traditional financial decision-making behaviors and gender ideologies and (2) enabling more intense acculturation of younger generations within “less patriarchal” contexts. With its unique, intergenerational, and multisite perspective, the study provides particular insight into the understudied relationship between migration and intra-household decision-making and its benefits for gender equality.

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Financial Decision Making and Survey Responses of Older Couples

Innovation in Aging ◽

10.1093/geroni/igaa057.995 ◽

2020 ◽

Vol 4 (Supplement_1) ◽

pp. 310-311

Author(s):

Angela Curl ◽

Estevan Tobias Molina

Keyword(s):

Decision Making ◽

Married Couples ◽

Older Couples ◽

Financial Decisions ◽

Financial Decision Making ◽

Household Finances ◽

Scale Range ◽

Limited Power ◽

Financial Decision ◽

Survey Responses

Abstract The Health and Retirement Study (HRS) asks mid-life and older couples to identify the person most knowledgeable about household finances to provide responses to financial questions (“financial respondent” [FR]). The purpose of this study is to analyze predictors of a female FR, with a focus on gendered financial decision making. This study analyzed HRS data from 2012 to 2018. Our sample consisted of 5,038 married/partnered couples over the age of 50 (at baseline), after eliminating cases with missing data on study variables. Using HLM 6.08 software, we computed the odds of couple households having a female FR. Our main predictor was the amount of female financial decision making power, as measured using eight Likert scale items (0=male always makes this decision, 4=female always makes this decision), for purchases (e.g., cars, major appliances) and financial activities (e.g., paying bills, buying groceries); summed into a scale (range: 0-32). Our models controlled for race, ethnicity, education, income, age, health, cognitive ability, and depressive symptoms. Results indicate that men were more likely to be the FR, but when the female makes more household financial decisions then she is more likely to be the FR (OR = 1.16, p<.01). Black race, lower income, and time also increased the odds of a female FR. This study highlights women’s historical and ongoing limited power in financial matters of married couples. Financial knowledge and decision making skills should be encouraged for both partners in couple households.

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