Saving for Children’s College Education: An Empirical Analysis of the Trade-off Between the Quality and Quantity of Children

This paper examines the effect of children’s college expenses on household savings. The theoretical model introduces life-cycle savings into the quality–quantity model of fertility and derives predictions for the impact of expected expenses on parents’ savings. Using the actual amount of parents’ financial support reported in the Survey of Consumer Finances, the empirical model estimates the expected expenditures on children’s college education and investigates the effect of expected expenditures on parents’ savings. The results show that parents’ support for each of their children’s college expenses decreases with the number of children. The results are consistent with the predictions of the life-cycle theory of saving and consumption that households save in advance for expected expenses to smooth their consumption.

Credit Constraints and Human Capital Investment in College Education

Using data from the Health and Retirement Study 2001 Human Capital Investment Survey, this article examines the impact of credit market constraints on investment in college education. The effect of family income on college attendance may not be as big as perceived in some previous studies. The interest rates faced by children from middle families are the lowest in the credit market. The research suggests that various government programs aiming to help children from poor families may be effective, but only at the extensive margin—by improving their access to college education. For those who get into college, underinvestment by students from poor families remains a significant problem.

Changing College Students’ Financial Knowledge, Attitudes, and Behavior through Seminar Participation

This pilot study examined the influence of Credit Wise Cats, a financial education seminar presented by Students in Free Enterprise, on the attitudes, knowledge, and intentions toward financial responsibility of college students (N = 93). Findings suggest that the seminar effectively increased students’ financial knowledge, increased responsible attitudes toward credit and decreased avoidant attitudes towards credit from pre-test to post-test. At post-test, students reported intending to engage in significantly more effective financial behaviors and fewer risky financial behaviors. Finally, demographic factors (e.g., gender and employment status) predicted students’ financial knowledge, attitudes, and behaviors. These results suggest that a seminar format may be useful in reaching a wider audience of college students and, thus, warrants future longitudinal evaluation.

The Factors Influencing Saving in a Matched Savings Program: Goals,Knowledge of Payment Instruments,and Other Behavior

This paper explores the saving behavior of the group of low-income households that have participated in the Australian Saver Plus matched savings program. The paper finds that a dynamic panel model represents a good technique for modeling the savings account balances of such participants. We find that, even after controlling for the unobservable individual response to the program incentive, the saving goal and education/financial literacy variables play a positive role in encouraging saving behavior. More importantly however, we find that programs such as Saver Plus are able to modify the saving behavior of individuals to the point where their prior behavior and their inherent attitude towards saving no longer play a significant role.

The Financial Assimilation of an Immigrant Group: Evidence on the Use of Checking and Savings Accounts and Currency Exchanges

This article examines the determinants of financial market participation for a particular group of immigrants: Hmong refugees in Minneapolis/St. Paul, Minnesota. Our findings indicate that controlling for income and education, Hmong immigrants are less likely to have savings accounts and credit cards and are more likely to use currency exchanges, compared to randomly selected non-Hmong households living in the same neighborhoods. However, these effects are mitigated by time spent in the US. Financial assimilation appears to take 15–20 years. These findings expand our understanding of immigrant assimilation and highlight some of the complexities associated with the process of assimilation.

Imagined interactions,family money management patterns and coalitions,and attitudes toward money and credit

This study explores the imagined interactions college students have with their parents about money and credit, their attitudes toward credit and money, the ways they say their parents deal with financial decisions, and the communication coalitions regarding finances they perceive existing within their family. Students’ imagined interaction pleasantness is greatest when parents jointly form a plan for paying off credit card debt and lowest when parents argue. When family coalitions exist, students report more frequent imagined interactions. Imagined interaction frequency and pleasantness are related to credit and money attitudes.

Constructing Gay and Lesbian Parent Families “Beyond the Closet”

This paper provides a multilayered analysis of how lesbian mothers and gay fathers construct their families in a social context that has been described by Steven Seidman (2004) as “beyond the closet.” We stress how our participants’ family-building experiences are comparable to other non-biologically related families, but distinct due to heterosexual dominance. Using in-depth qualitative interviews with 18 lesbian birth mothers and 22 gay fathers, the authors discuss how participants navigate heterosexual dominance in institutions and in personal interactions.

Financial Issues Associated with Having a Child with Autism

Data from the Family Experiences with Autism Survey are used to identify factors associated with financial problems in families that have a child with autism. Likelihood of financial problems was positively associated with use of medical interventions, having unreimbursed medical or therapy expenses, and having relatively lower income. Use of speech and language therapy was negatively associated with likelihood of financial problems. Many survey respondents forfeited future financial security and even experienced bankruptcy to provide needed therapy for a child with autism. Specific ways that financial advisors can help families that have a child with autism are outlined.

Predictors of Chapter 13 Completion Rates: The Role of Socioeconomic Variables and Consumer Debt Type

This study examined whether demographic or financial variables best predict completion of Chapter 13 bankruptcy plans. Multinomial logistic regression revealed that demographic variables were more important than financial variables in predicting completion. Completion of a Chapter 13 repayment plan was not associated with a debtor’s monthly income or expenses. Never married debtors, dependent children, a previous filing, and higher mortgage arrears increased the likelihood of dismissal. Longer job tenure and home ownership improved completion rates. Discharge was associated with higher unsecured debts. Results can help improve Chapter 13 completion rates. Debtors need guidance in setting up realistic repayment plans. Financial counselors could help ensure that repayment plans are feasible and to counsel debtors who miss a plan payment.

The impact of biological preferences on parental investments in children and step-children

A remarriage typically involves significant changes in a family’s financial circumstance, and these changes, combined with the relative bargaining relationship between spouses, likely affect the well-being of the children who are part of the family. In this paper, I use the separate-spheres model, a theoretical model that explains the determinants of bargaining power in marriage, to analyze how a remarried couple’s bargaining relationship affects their child investment in stepfamilies. Based on this theoretical model, I build and estimate an empirical model that investigates the determinants of parental investment. As evidence of parental preference for biological children over stepchildren, I find that an increased wage rate of a biological mother significantly improves her child investment when her husband is a stepfather of the child, while there is no such effect for mothers living with the biological father of the child.

Financial Reciprocity and Elder Care: Interdependent Resource Transfers

A sample from the Wisconsin Longitudinal Study was used to examine the influence of parent-to-child financial transfers and economic resources on child-to-parent financial transfers, caregiving, time-help, and coresidence as multiple, interdependent transfers from middle-aged adult children to their elderly parents. There were strong positive effects of prior parent-to-child financial transfers in the models of caregiving, time help, and coresidence but no effect on child-to-parent financial transfers. Coresidence, caregiving, and time-help are complements but there was no interdependence between child-to-parent financial transfers and caregiving or time-help. The effects of parents’ incomes and net worth are interpreted as evidence about motives for transfers to them.

The Monster Within: Countertransference Reflections on a Gay Adolescent’s Struggle with Sexual Identity

This paper concerns the author’s countertransference reflections on her work with a gay adolescent who identifies with powerfully destructive internal objects, including Hitler and the Monster. The author describes her countertransference inquiry through which she experiences her own potential destructiveness in order to help accommodate her adolescent patient’s rejected and disowned self states.

A Historical Perspective on High School Students’ Paid Employment and Its Association with High School Dropout

Discussions about the role of paid employment in high school students’ lives usually involve untested assumptions about historical trends in the frequency, intensity, and selective nature of students’ employment behaviors. Using several nationally representative data sources, we find few changes in rates of employment or hours worked per week among adolescents since 1940 or among students since 1980. We observe important changes in recent decades in racial/ethnic and gender differences in employment and intensive employment. Finally, we observe that the relationship between students’ intensive employment and high school completion has been stable and persistently significant since the late 1960s.

The Decline of the US and the Flatenization of International Order

Based on the current global financial crisis, the article introduces two recent typical perspectives on international order from the angle of discussion on the decline of the US, pointing out that the real trend of the development of international political economic order is flatenization. International power will be distributed in a flat model. In this kind of order big powers, main regional nation groups and important international organizations and institutions will share power in an increasingly equal way. The demands for reform of the international financial system against this financial crisis also reflect the trend of flatenization of the international political economic order.

Effectiveness of Financial Education on Financial Management Behavior and Account Usage: Evidence from a ‘Second Chance’ Program

The Get Checking™ program is a “second chance” program that aims to provide financial education to consumers who were reported to ChexSystems by a previous financial institution for account abuse or mismanagement. Using data collected from Indiana participants of the program, the first goal of this study is to investigate the success of the program in impacting financial management behavior of the participants. The second goal is to investigate the change of participants’ actual behavior in terms of account usage and asset-building after the completion of the program. The findings show that the program was successful in positively influencing the financial management behavior of Non-whites in terms of recording transactions and communicating with financial institutions. Also, financial management skills emphasized in the program, especially communicating with financial institutions, have a significant positive effect on the actual behavior of the participants in terms of obtaining a loan. Among the heterogeneous group of the unbanked, findings shed light on the demographic groups, such as Non-whites and young adults that could benefit the most from this type of financial management education.

Household Debt and Marital Instability: Evidence from the Korean Labor and Income Panel Study

Korean society has recently experienced rapid increases in household debt and divorce rates. This study investigates whether household debt and debt ratios lower marital stability and increase the probability of divorce among Korean families. Six-year panels from the Korean Labor and Income Panel Study (KLIPS) household surveys were used for analysis. The effect of household debt upon the probability of divorce was estimated through pooled and population-averaged Logit models. The results suggest that household financial strain measured by the amount of household debt and the debt-to-income ratios does not significantly affect the probability of divorce. This finding contradicts the widespread notion that households’ excessive borrowing has been partially responsible for the recent increase in divorce rates in Korea.

Therapeutic Ambition,Uncertainty, and Psychotherapy with Heterosexually Married Gay Men: A Short Commentary

A Short Commentary on the article 'Staying Put in the Closet: Examining Clinical Practice and Countertransference Issues in Work with Gay Men Married to Straight Women' by Edward Alessi. The focus is upon countertransference issues, especially therapeutic ambition, in working clinically with heterosexually married gay men. The work of the interpersonal school is emphasized as providing a creative approach to therapeutic ambition with Otto Allen Will's concept of the governing principle of uncertainty.

The scoring rules in an endogenous election

Plurality rule is mostly criticized from being capable of choosing an alternative considered as worst by a strict majority. This paper considers elections in which the agenda consists of potential candidates strategically choosing whether or not to enter the election. In this context, we examine the ability of scoring rules to fulfil the Condorcet criterion. We show for the case of three potential candidates that Plurality rule is the only scoring rule that satisfies a version of the Condorcet criterion in two cases: 1) when preferences are single-peaked and, 2) when preferences are single-dipped.

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Return to Education and the Changing Role of Credentials in the Croatian Labor Market

The countries of Central and Eastern Europe experienced a rapid increase of return to education with the advent of the transition. We look at the dynamics of wage premiums in Croatia and estimate how much the return to education has changed between 1996 and 2004 on the basis of labor force survey data. We also extend the paper in order to address additional features of the wage structure, such as non-linearities in the return to education associated with attainment of credentials. We find that contrary to most transition countries, premiums for education in Croatia began to grow only after the mid 1990s. However, by 2004, they reached the levels of premiums found in other transition countries and advanced market economies, thus creating market incentives for investment in education. We also find that major part of this higher rate of return came through higher return to credentials.

The response of household parental investment to child endowments

The theoretical and empirical literature on parental investment focuses on whether child-specific parental investments reinforce or compensate for a child’s initial endowments. However, many parental investments, such as neighborhood quality and family size and structure, are shared wholly or in part among all children in a household. The empirical results of this paper imply that such household parental investments compensate for low endowments, as proxied by low birth weight.