Abstract
Based on Boss’ family stress model, the study examined whether financial adaptations and locus of control mediated levels
of financial distress and hopefulness for low-income consumers experiencing economic pressure. Data were collected online
from 221 low-income, Midwestern consumers. Structural equation modeling explored relationships. Those reporting more economic
pressure reported higher financial distress, less hopefulness. When locus of control was more internal, however, participants
reported less financial distress and more hopefulness. Those making more financial adjustments had more financial distress,
but also more hopefulness, indicating that while the current situation was grim, adaptive responses fostered hopefulness that
things would improve. Educators can emphasize financial behaviors that improve financial outcomes, facilitating greater perceived
control over finances, more hopefulness, and reduced financial distress.
of financial distress and hopefulness for low-income consumers experiencing economic pressure. Data were collected online
from 221 low-income, Midwestern consumers. Structural equation modeling explored relationships. Those reporting more economic
pressure reported higher financial distress, less hopefulness. When locus of control was more internal, however, participants
reported less financial distress and more hopefulness. Those making more financial adjustments had more financial distress,
but also more hopefulness, indicating that while the current situation was grim, adaptive responses fostered hopefulness that
things would improve. Educators can emphasize financial behaviors that improve financial outcomes, facilitating greater perceived
control over finances, more hopefulness, and reduced financial distress.
- Content Type Journal Article
- Category Original Paper
- Pages 1-12
- DOI 10.1007/s10834-012-9288-1
- Authors
- Aimee D. Prawitz, School of Family, Consumer, and Nutrition Sciences, Northern Illinois University, DeKalb, IL 60178, USA
- Julie C. Kalkowski, Financial Hope Coalition, College of Business Administration, Creighton University, Omaha, NE, USA
- Judith Cohart, Personal Finance Employee Education Foundation, Alexandria, VA, USA
- Journal Journal of Family and Economic Issues
- Online ISSN 1573-3475
- Print ISSN 1058-0476