Most home makers want improved successful family life and this has always been an important goal. This can be measured by material and nonmaterial accomplishments which improve the quality of life.
Financial management has always been almost unavoidable for all institutions or organizations and is considered life blood of any organization. Its limited availability renders it critical that proper management practices are adopted for obtaining maximum benefits and for achieving objectives of the organization to the greatest possible extent.
It is true that management may occur in daily live but the question is ‚€œwhat is the quality of management and is it helping people to reach their goals‚€Ě. To find answers to the problem the researcher based her studies on the following:
Objectives of the Study
1. The study intended to Lind out the technique employed by home makers for the management of family finance and their awareness regarding the functions or process of management.
2. It aimed to find out whether the families were unaware about the advantages of budgeting due to tendency of conspicuous consumption.
3. It also aimed to find the relationship between family values, goals and their inf1uence on expenditure priorities.
4. It checked to find the relationship between budgeting and goal achievement.
Methodological Perspective of the Study
The universe for the present study was selected working home makers from the divisions of Punjab. Four hundred respondents from the fields of science, education, management and medicine were interviewed. The researcher used the non probabilistic class of sampling. The hypothesis-testing design was used for the research. Co-efficient of correlation was used for testing the relationships.
1. ‚€œAwareness of process of financial management will occur with clear conception of goals.‚€Ě
2. ‚€œTendency of conspicuous consumption is responsible for the lack of budgeting.‚€Ě
3 ‚€œFamily expenditure priorities are influenced by the family's values.‚€Ě
4. ‚€œGoal achievement and budgeting are closely related‚€Ě
Findings Supporting the Hypotheses
With regard to recognition of goals, the researcher found that a very small number of respondents were aware of their goals immediately after marriage. Only 17% conceived their short range goals, followed by 20.25% for intermediate goals and 26% conceived their long term goals. There was not much change in their attitude regarding goals even after five and ten years of marriage life. There was a change with some respondents after fifteen years of marriage. 31% reported to have conceived their short term goals and 35.75% were clear about their intermediate goals. The highest percentage was reported for long term goals by 41% of respondents.
Families with clear cut goals managed their income through budgeting, that is 18.75%, whereas 81.25% were not budgeting neither did they keep any account of their expenditure unlike the respondents who were budgeting.
Respondents who were budgeting said that, budgeting ensures family's future, reduces family conflicts and all members are committed to the achievement of family goals through their cooperation and coordination to family‚€™s well drawn action plan which is drawn with lot of thought.
58.25% of the respondents stated that they did not believe in budgeting as it cannot cope with the inflationary trend of price and high societal demand for ‚€œlife style‚€Ě. The rest of 23% felt that budgeting does not play any important role because family circumstances are simple due to homogeneity of needs unlike the business circumstances which is complex.
Majority of the respondents seemed to be unaware of process of management. 68% did not plan their finance, 63% of the respondents had no control over their expenditure 65.25% reported to have motivational disparity between goals/need and family finance. The communication seemed to be vague and not clear with 64.25% of home makers, and 61.5% indicated that they never evaluated their expenditure pattern. Thus hypothesis number 1 was upheld as indicated by a coefficient of correlation of 0.86.
The expenditure pattern or the respondents presents that 24.25% and 24% of income was used for food and housing respectively, 25% of income was utilized for education, clothing and transportation and 20.25% of income was used for gifts, holidays, bills, entertaining, servants and miscellaneous. The rate of saving was very low, that is, 6.5% of income which is lower than the national level which is between 8% to 10%.
The results further exhibit that there is a coefficient of correlation of 0.69 due to high level of consumption and lack of scientific financial pattern of management; and a coefficient of correlation of 0.86 was indicated as majority of the respondents who were not budgeting did not believe in economizing and therefore, did not save by foregoing their needs. This further indicated that due to the tendency for conspicuous consumption, budgeting was not practised, thus indicating a strong coefficient of correlation of 0.77.
An overwhelming majority of the respondents comprising of more than 80% gave highest priority fur education and second in the priority list was the ‚€œlife style‚€Ě and third priority was given to maintaining good relationship with relatives and friends. The home makers showed a strong value for ‚€œgetting ahead‚€Ě and for belonging to the Joneses. The data showed a low percentage of 19% for an esteem for economic value whereas a high majority of 81% had an esteem for social and personal values, therefore, they do not want to save money by foregoing their needs This indicated a high positive coefficient of correlation of 0.89. Hypothesis number shows strong relationship between family values and its influence on expenditure priorities of the respondents producing a coefficient of correlation of 0.78. As family values are closely related to family's philosophy of life, therefore, family expenditure priorities are affected by values.
All those respondents who were budgeting were able to achieve high level of satisfaction by accomplishing their goals, and those home makers who lacked concrete financial plan had to face low level of consumption satisfaction showing a coefficient of correlation of 0.05.
The findings also indicated that budgeting raises the saving rate of respondents, thus finding a coefficient of correlation of 0.64. The data further indicates a strong relationship between budgeting and goal achievement revealing positive coefficient of correlation of 0.80 and thus supporting hypothesis number 4.
The net worth of the family also depicts the level of goal achievement by the family. The home makers who were budgeting had an average net worth of nearly Rs 32,00,000 compared to the average net worth of Rs 10,00,000 who were not budgeting. The difference of Rs 22,00,000 shows glaringly that the right decision at the right time, plus by following the process of management, the level of goal achievement increases. By planning for effective allocation of income and self control the home maker will eliminate wasteful expenditure and control the imbalance of deficit financing. This will contribute to the fortunes of the family and shall provide success, stability, and finally high level of satisfaction.