Resource Management of Rural Households

The number of one-parent households in the U.S. has grown steadily from 13.1% of all households in 1970 to 20.9% in 1989.1 Single-parent households have increased in both rural and urban areas. Because these households have one less person to handle resource management than two-parent households, using recommended time and money management practices may be the only way to stretch limited resources. This study examined differences in frequency of resource (time and money) management practices in the two household types. Further, because management can help a person feel in control of his or her life, we studied differences in feelings of control.

A random sample was drawn from rural populations in eight states.2 The financial manager in each household completed a mail questionnaire. Final sample size was 2,510.

Chi-square analysis indicated no significant differences between household type in frequency of resource management practices or feelings of control. These findings are contrary to what was expected and indicate the same educational programs and materials about money and time management and feelings of control can be used for either household type.

Some results show a need for financial and time management programs. For example, only 56% of one-parent and 54% of two- parent households usually evaluated their spending on a regular basis. Plans about how to spend their time were usually made by 54% of one-parent and 56% of two-parent households.

Further, only 55% of one-parent and 52% of two-parent households ageed or strongly ageed with: "My financial situation depends on my control of the situation." This suggests people need help in developing feelings of control. Resource management can help. For example, people feel they have more control of their financial situation if they have an emergency fund and an adequate risk management plan. Identification of short-term and long-term goals, along with specific plans to achieve these, also increase sense of control. With increased feelings of control, individuals feel more confident about managing their resources, which motivates them to use more management. The result is greater satisfaction with the financial situation.

1. U.S., Department of Commerce, Bureau of the Census, Statistical Abstract of the United States (Washington, D.C.: U.S. Government Printing Office, 1990).

2. Data were collected in conjunction with the cooperative regional research project NC-182, Family Resource Utilization as a Factor in Determining Economic Well-Being of Rural Families. Cooperating states were: Arizona, California, Illinois, Indiana, Iowa, Kansas, Michigan, and Minnesota. Preparation of this report was supported in part by the Illinois Agricultural Experiment Station.