Family budget and children outcomes. New perspectives

• Author: Mihaela Gotea
• Position: Transilvania University of Brasov
• Pages: 125-130

Bulletin of the Transilvania University of Braşov

Series VII: Social Sciences • Law • Vol. 10 (59) No. 2 - 2017

FAMILY BUDGET AND CHILDREN

OUTCOMES.

NEW PERSPECTIVES

Mihaela GOTEA1

Abstract: This paper analyses the impact of family budget on children

outcomes, making a synthesis of different studies. I have identified the main

dimensions used in research on the family budget. The paper highlights the main

effects of family financial strategies, both the effective and the dysfunctional

ones. The fact that poverty generates poor cognitive, behavioural and health

outcomes on children is emphasized. I also provide new directions for future

studies on Romanian family budget, allocated for children expenditure.

Key words: money management, family budget, children outcomes, child

development.

1. Introduction

Money is a powerful force in modern societies based on consumption. But the financial

resources are limited in relation to the wishes and needs of family members, especially of

children, eager for novelty and diversity. Thus, parents are constantly challenged to strike a

balance between meeting the immediate needs of children, providing opportunities for their

development, increasing the opportunities for their future and ensuring the financial security

of the family. Around us, we can observe that different families use various strategies to

handle budgeting and money management in their everyday life.

2. Dimensions of analysis of family budget

Family can be described as a group of persons committed to meeting one another's

economic needs. This economic function is a vital one of the modern family in our day. As

the family is becoming a triad, the new-born is fed and clothed, protected and nurtured into

childhood, adolescence, and adulthood. Even when children leave the parental house, they

continue to receive economic support.

Literature has captured various aspects of family budget. One of them is about analysing

family budget management during different stages of family life, such as: in the young

family stage (Burgoyne et al., 2006, Burgoyne et al., 2007), in the adult family, or in elderly

couples. For example, Burgoyne et al. (2007) sustain that before the wedding the majority

had rather independent monetary arrangements, but a year later, some had adopted a more

collective strategy. Factors influencing change or stability in financial arrangements were

1 Transilvania University of Braşov, mihaela.gotea@unitbv.ro