The Importance Of Family Financial Management

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Rationale of the Study Most parents, households, and community members want their daily living a fruitful and productive. The common problem that families usually encounter is on the financial aspect. Family financial management and control practices have received little attention, yet they are increasingly important, due to changes in the financial environment (Granbois, Rosen & Acito 2006). Morover, financial planning is also important for the household's strength, stability, and longevity. Budgeting is an important planning tool which is concerned with the planning and controlling functions of management (Davis, 2007). Financially secure families are better able to contribute to vital, thriving communities and thereby further foster community economic development (Hilgert & Hogarth, 2013). Moreover, financial management and practices play critical roles in the financial success of a business or of any individual. Therefore, any person or organization should consider financial management a key component of the general management of one’s future life (Benjamin. 2005). In the Philippines, financial practices of households are always affected by the rising prices of basic commodities. Further, it has been observed that when there is price hikes, price of basic products also rises. This is very alarming to the …show more content…

As stated by Schnittgrund and Baker (1983), real financial management combines financial management practices and effective results such as the frequency of saving form of budget used, and the regular periods intervals of financial management problems in the family. Based also in the study of (Schnittgrund & Baker, 1983) research indicates that consumers rely on financial management practices like budgeting and savings are having significant monetary

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