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Developed by Wilma Schuh and Brenda Procter, Consumer and Family
Economics Specialists, University of Missouri Extension |
Relationship to building
strong families
Not having enough money at the end
of the month can create stresses for even the strongest family. When
families experience conflict about money, it is really about something
else. Money is just a medium of exchanging goods and services with each
other.
“Money” conflicts are actually about
who gets to have and do what. For that reason, this module focuses
considerable attention on money values and family communication about
money.
Money matters are important across all
levels of income.
Brief program description
Activities are provided to help
participants identify their own money styles and how they developed them,
practice allocating resources within a simulated family unit, learn to
negotiate with others about spending decisions, and get simple tools to
help their families plan to have what they want and need.
Research findings
Numerous national studies indicate
that financial management difficulties can affect families of all types
and at all levels of income. In fact, consumers spend about 14% of their
disposable income on debt payments. This high level of indebtedness
threatens households’ well-being and creates a tremendous amount of
stress. Bankruptcies are at an all-time high with over 1.6 million
families and individuals filing for relief of their debts in 2003. In
2003, the average household debt in America was $17,283, about 40% of
family income. American families were also $9,205 in debt from credit
cards. Bankruptcy is not limited to any one socioeconomic group and, in
fact, is more extensive among upper-income families.
Missouri Statistics (year 2003)
- 37,452 households filed for
bankruptcy, a 46% increase from 2000
- 1 household went bankrupt every 14
minutes
- 18,000 more children saw their
parents go bankrupt than get divorced
Bankruptcy Alternatives
There are several possible alternatives to bankruptcy for those in
financial trouble. Many companies offer these services and will
negotiate with your creditors on your behalf or provide lending
services. It is important that the household considers a reputable
professional to handle this situation and make sure they do not do
anything that places them in a worse situation. Not all alternatives are
the same and some may still have a negative affect on your credit
rating, so investigate your options wisely.
- Out-of-Court Settlement - settle
your unsecured debt at a reduced amount.
- Debt Counseling Service -
consolidate your monthly payments and obtain payment or interest
reductions on your unsecured debts.
- Debt Consolidation Loans - borrow
against the equity in one's home to pay down credit card debt. (If
you are unable to pay your loan, you may lose your home).
Goals and objectives
- To identify personal money styles and
how they developed;
- To practice allocating resources within
a simulated family unit;
- To learn to negotiate with others about
spending decisions;
- To understand the need for a spending
plan.
Target audience
Working families with children
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