IDEAS home Printed from https://ideas.repec.org/a/kap/jfamec/v46y2025i1d10.1007_s10834-024-09996-2.html
   My bibliography  Save this article

Young Women’s Financial Satisfaction: The Roles of Financial Decision-Making Power, Spousal Relative Resources, and Personal Financial Characteristics

Author

Listed:
  • Lu Fan

    (University of Georgia)

  • Soomin Ryu

    (University of Michigan)

Abstract

This study examines the relationships of financial decision-making power, spousal relative resources, and personal financial characteristics with financial satisfaction. Using a sample of young American women with lower income who were married or cohabiting (N = 303), we found that women with higher financial decision-making power in savings and investments as well as in managing regular bills than their spouses were more likely to have higher financial satisfaction compared to women with spouses having higher financial decision-making power. These associations were derived from married women, rather than cohabiting women. Interestingly, women with higher incomes than their spouses reported a lower level of financial satisfaction compared to women with spouses having a higher income. The same pattern was observed for spousal relative education. Subjective financial knowledge had a positive association with financial satisfaction. We also examined potential moderating roles of education, which suggests that women with higher education had a more pronounced association between financial decision-making power in savings and investments and higher financial satisfaction. Our findings provide implications for policymakers, financial service providers, and family life practitioners to potentially reduce gender inequality in intrahousehold financial decision-making, which ultimately benefits financially vulnerable women’s financial satisfaction.

Suggested Citation

  • Lu Fan & Soomin Ryu, 2025. "Young Women’s Financial Satisfaction: The Roles of Financial Decision-Making Power, Spousal Relative Resources, and Personal Financial Characteristics," Journal of Family and Economic Issues, Springer, vol. 46(1), pages 228-245, March.
    • Handle: RePEc:kap:jfamec:v:46:y:2025:i:1:d:10.1007_s10834-024-09996-2
    DOI: 10.1007/s10834-024-09996-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10834-024-09996-2
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10834-024-09996-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Maéva Doumbia & Marion Goussé, 2021. "Gender identity and relative income within households: Evidence from Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(4), pages 1667-1683, November.
    2. Soomin Ryu & Jinhee Kim, 2021. "The influence of time, resource, and gender ideology on the division of domestic work in Korea," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(4), pages 1373-1397, December.
    3. Francine D. Blau & Lawrence M. Kahn, 2017. "The Gender Wage Gap: Extent, Trends, and Explanations," Journal of Economic Literature, American Economic Association, vol. 55(3), pages 789-865, September.
    4. Annamaria Lusardi & Olivia S. Mitchell, 2008. "Planning and Financial Literacy: How Do Women Fare?," American Economic Review, American Economic Association, vol. 98(2), pages 413-417, May.
    5. Doss, Cheryl, 2013. "Intrahousehold bargaining and resource allocation in developing countries," Policy Research Working Paper Series 6337, The World Bank.
    6. Azwadi Ali & Mohd Rahman & Alif Bakar, 2015. "Financial Satisfaction and the Influence of Financial Literacy in Malaysia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(1), pages 137-156, January.
    7. Alessandra Voena, 2015. "Yours, Mine, and Ours: Do Divorce Laws Affect the Intertemporal Behavior of Married Couples?," American Economic Review, American Economic Association, vol. 105(8), pages 2295-2332, August.
    8. Bannier, Christina E. & Schwarz, Milena, 2018. "Gender- and education-related effects of financial literacy and confidence on financial wealth," Journal of Economic Psychology, Elsevier, vol. 67(C), pages 66-86.
    9. Lu Fan & Robin Henager, 2022. "A Structural Determinants Framework for Financial Well-Being," Journal of Family and Economic Issues, Springer, vol. 43(2), pages 415-428, June.
    10. Marianne Bertrand & Emir Kamenica & Jessica Pan, 2015. "Gender Identity and Relative Income within Households," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(2), pages 571-614.
    11. Cheryl Doss, 2013. "Intrahousehold Bargaining and Resource Allocation in Developing Countries-super-1," The World Bank Research Observer, World Bank, vol. 28(1), pages 52-78, February.
    12. Lusardi, Annamaria & Mitchell, Olivia S., 2011. "Financial literacy around the world: an overview," Journal of Pension Economics and Finance, Cambridge University Press, vol. 10(4), pages 497-508, October.
    13. Urvi Neelakantan, 2010. "Estimation And Impact Of Gender Differences In Risk Tolerance," Economic Inquiry, Western Economic Association International, vol. 48(1), pages 228-233, January.
    14. Kyoung Tae Kim & Somer G. Anderson & Martin C. Seay, 2019. "Financial Knowledge and Short-Term and Long-Term Financial Behaviors of Millennials in the United States," Journal of Family and Economic Issues, Springer, vol. 40(2), pages 194-208, June.
    15. HanNa Lim & Su Hyun Shin & Melissa J. Wilmarth & Narang Park, 2022. "Who Decides? Financial Decision-Making Among Older Couples," Journal of Family and Economic Issues, Springer, vol. 43(2), pages 310-337, June.
    16. Jing Xiao & Cheng Chen & Fuzhong Chen, 2014. "Consumer Financial Capability and Financial Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(1), pages 415-432, August.
    17. Jeremy Lise & Ken Yamada, 2019. "Household Sharing and Commitment: Evidence from Panel Data on Individual Expenditures and Time Use," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(5), pages 2184-2219.
    18. Elisa Taveras, 2023. "The effect of spouses' relative education on household time allocation," Southern Economic Journal, John Wiley & Sons, vol. 89(3), pages 788-829, January.
    19. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
    20. Paul Gerrans & Craig Speelman & Guillermo Campitelli, 2014. "The Relationship Between Personal Financial Wellness and Financial Wellbeing: A Structural Equation Modelling Approach," Journal of Family and Economic Issues, Springer, vol. 35(2), pages 145-160, June.
    21. Deborah Thorne, 2010. "Extreme Financial Strain: Emergent Chores, Gender Inequality and Emotional Distress," Journal of Family and Economic Issues, Springer, vol. 31(2), pages 185-197, June.
    22. Plagnol, Anke C., 2011. "Financial satisfaction over the life course: The influence of assets and liabilities," Journal of Economic Psychology, Elsevier, vol. 32(1), pages 45-64, February.
    23. Sarah Asebedo & Patrick Payne, 2019. "Market Volatility and Financial Satisfaction: The Role of Financial Self-Efficacy," Journal of Behavioral Finance, Taylor & Francis Journals, vol. 20(1), pages 42-52, January.
    24. Chang-Keun Han & Song-Iee Hong, 2011. "Assets and Life Satisfaction Patterns Among Korean Older Adults: Latent Class Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 100(2), pages 225-240, January.
    25. Raquel Fonseca & Kathleen J. Mullen & Gema Zamarro & Julie Zissimopoulos, 2012. "What Explains the Gender Gap in Financial Literacy? The Role of Household Decision Making," Journal of Consumer Affairs, Wiley Blackwell, vol. 46(1), pages 90-106, March.
    26. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-467, June.
    27. Bonke, Jens, 2008. "Income distribution and financial satisfaction between spouses in Europe," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2291-2303, December.
    28. Esperanza Vera-Toscano & Victoria Ateca-Amestoy & Rafael Serrano-Del-Rosal, 2006. "Building Financial Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 77(2), pages 211-243, June.
    29. Pierre-Andre Chiappori & Maurizio Mazzocco, 2017. "Static and Intertemporal Household Decisions," Journal of Economic Literature, American Economic Association, vol. 55(3), pages 985-1045, September.
    30. Ingo Balderjahn & Michael S.W. Lee & Barbara Seegebarth & Mathias Peyer, 2020. "A Sustainable Pathway to Consumer Wellbeing. The Role of Anticonsumption and Consumer Empowerment," Journal of Consumer Affairs, Wiley Blackwell, vol. 54(2), pages 456-488, June.
    31. Da Ke, 2021. "Who Wears the Pants? Gender Identity Norms and Intrahousehold Financial Decision‐Making," Journal of Finance, American Finance Association, vol. 76(3), pages 1389-1425, June.
    32. Charness, Gary & Gneezy, Uri, 2012. "Strong Evidence for Gender Differences in Risk Taking," Journal of Economic Behavior & Organization, Elsevier, vol. 83(1), pages 50-58.
    33. Hassan F. Gholipour & Reza Tajaddini & Farhad Taghizadeh-hesary, 2022. "Individuals’ Financial Satisfaction and National Priority: A Global Perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(1), pages 159-177, February.
    34. Lu Fan, 2021. "A Conceptual Framework of Financial Advice-Seeking and Short- and Long-Term Financial Behaviors: An Age Comparison," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 90-112, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ariane Agunsoye & Jerome Monne & Janette Rutterford & Dimitris P. Sotiropoulos, 2022. "How gender, marital status, and gender norms affect savings goals," Kyklos, Wiley Blackwell, vol. 75(2), pages 157-183, May.
    2. Donni, Olivier & Molina, José Alberto, 2018. "Household Collective Models: Three Decades of Theoretical Contributions and Empirical Evidence," IZA Discussion Papers 11915, Institute of Labor Economics (IZA).
    3. Klein, Matthew J. & Barham, Bradford L., 2018. "Point Estimates of Household Bargaining Power Using Outside Options," Staff Paper Series 590, University of Wisconsin, Agricultural and Applied Economics.
    4. Tabea Bucher-Koenen & Rob Alessie & Annamaria Lusardi & Maarten van Rooij, 2021. "Fearless Woman. Financial Literacy and Stock Market Participation," Working Papers 708, DNB.
    5. Botosaru, Irene & Muris, Chris & Pendakur, Krishna, 2023. "Identification of time-varying transformation models with fixed effects, with an application to unobserved heterogeneity in resource shares," Journal of Econometrics, Elsevier, vol. 232(2), pages 576-597.
    6. Jennifer Robson & Johanna Peetz, 2020. "Gender differences in financial knowledge, attitudes, and behaviors: Accounting for socioeconomic disparities and psychological traits," Journal of Consumer Affairs, Wiley Blackwell, vol. 54(3), pages 813-835, September.
    7. Freer, Mikhail & Surana, Khushboo, 2025. "Marital stability with committed couples: A revealed preference analysis," Games and Economic Behavior, Elsevier, vol. 150(C), pages 131-159.
    8. Irene Botosaru & Chris Muris & Krishna Pendakur, 2020. "Intertemporal Collective Household Models: Identification in Short Panels with Unobserved Heterogeneity in Resource Shares," Department of Economics Working Papers 2020-09, McMaster University.
    9. Jean-Marie Baland & Roberta Ziparo, 2017. "Intra-household bargaining in poor countries," WIDER Working Paper Series wp-2017-108, World Institute for Development Economic Research (UNU-WIDER).
    10. Alexandros Theloudis & Jorge Velilla & Pierre-André Chiappori & José Ignacio Giménez-Nadal & José Alberto Molina, 2025. "Commitment and the Dynamics of Household Labour Supply," The Economic Journal, Royal Economic Society, vol. 135(665), pages 354-386.
    11. Ding, Yawen & Wang, Xiaobing & de Brauw, Alan & Qiu, Huanguang, 2024. "Catch up with my husband as I can: Women’s decision-making power consequences of China’s poverty alleviation relocation program," World Development, Elsevier, vol. 173(C).
    12. Juan Carlos Campaña & José Ignacio Giménez-Nadal & José Alberto Molina & Jorge Velilla, 2024. "The shifters of intrahousehold decision-making in European countries," Empirical Economics, Springer, vol. 66(3), pages 1055-1101, March.
    13. Tommaso Giommoni & Enrico Rubolino, 2024. "The Cost of Gender Identity Norms: Evidence from a Spouse Tax Credit," CESifo Working Paper Series 11311, CESifo.
    14. Lu Fan & Robin Henager, 2022. "A Structural Determinants Framework for Financial Well-Being," Journal of Family and Economic Issues, Springer, vol. 43(2), pages 415-428, June.
    15. Klein, Matthew J. & Barham, Bradford L. & Wu, Yuexuan, 2019. "Gender Equality in the Family Can Reduce the Malaria Burden in Malawi," Staff Paper Series 594, University of Wisconsin, Agricultural and Applied Economics.
    16. Tinghög, Gustav & Ahmed, Ali & Barrafrem, Kinga & Lind, Thérèse & Skagerlund, Kenny & Västfjäll, Daniel, 2021. "Gender differences in financial literacy: The role of stereotype threat," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 405-416.
    17. Alexa Balmuth & Julie Miller & Samantha Brady & Lisa D’Ambrosio & Joseph Coughlin, 2021. "Mothers, Fathers, and Student Loans: Contributing Factors of Familial Conflict Among Parents Repaying Student Loan Debt for Children," Journal of Family and Economic Issues, Springer, vol. 42(2), pages 335-350, June.
    18. Ryo Sakamoto & Miki Kohara, 2025. "Why gender norms matter," Economica, London School of Economics and Political Science, vol. 92(365), pages 150-172, January.
    19. Zhongwu Li, 2023. "Family Decision Making Power and Women’s Marital Satisfaction," Journal of Family and Economic Issues, Springer, vol. 44(3), pages 568-583, September.
    20. Rong, Rong & Gnagey, Matthew & Grijalva, Therese, 2018. "“The less you Discount, the more it shows you really care”: Interpersonal discounting in households," Journal of Economic Behavior & Organization, Elsevier, vol. 154(C), pages 1-23.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jfamec:v:46:y:2025:i:1:d:10.1007_s10834-024-09996-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.