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

 


If you have any questions or need information contact:

Lucy Schrader
Building Strong Families Program Coordinator
University of Missouri Extension
162 Stanley Hall
Columbia, MO  65211
573-882-4071
SchraderL@missouri.edu  

Copyright © 2006 Published by University of Missouri-Columbia

Last updated:09/21/2007
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