Are Two Heads Really Better than one in Intra-Household Financial Management? Evidence on the Financial Behaviour of Couples in Poland

Abstract

Research shows that involvement in intra-household financial management fosters the development of financial literacy and sound financial behaviour. However, little is known about how different intra-couple financial management styles (sole versus joint management) affect the way consumers act when confronted with typical financial matters. Using a simple classifier allowing to distinguish households in which both partners undertake financial activity from those in which only one partner is involved in managing household finances, we applied statistical tests of significant differences and multiple linear regression models to determine whether the financial behaviour of joint participants is distinct from that of sole participants in Poland. Mann-Whitney U test showed that significant differences exist in credit management behaviour, with individuals who share participation performing better behaviour in this domain compared to sole managers. Credit management also appears to be the most problematic domain of household financial management where undesirable behaviour is the most likely. However, closer inspection with linear regression revealed that these differences can be attributed to socio-demographic variables such as age, place of residence, income, and number of dependent children.