Coping strategies used for household financial management: Problem and emotion focused coping in diverse economic climates

This research explored how coping methods vary when examined in two different economic environments. Previous research into the coping methods used by the traditional family (defined as individuals living in the same household who were married and any children living with them) revealed that when faced with financial strain, the family chose to increase its labor market hours worked (a problem-focused coping method) over choosing to devalue money (an emotion-focused coping method). However, previous research was conducted during a time of economic prosperity. In contrast, the present study was conducted during a time of recovery from an economic recession to gain insights into how those coping methods changed. Using an online survey, data for this research was collected from a sample of families with demographics similar to those of the previous research. Structural equation modeling and independent sample t-tests were used to examine the coping methods used by the family when it faced financial strain. Results showed that the family still preferred to increase its work hours over devaluing money; however the relationship between financial strain and hours worked was smaller than it had been in the previous research. Additionally, the relationship between hours worked and income was weaker. Both of these findings may reflect the effects of the economy on household finances in the form of decreased availability of work and lower paying jobs. While the family is using coping methods that are similar to what was being used during a time of economic prosperity, during a time of economic recovery those coping methods are less effective at increasing income and decreasing financial stress than they had previously been.