3433-vol. 6 issue 2-3.pmd - iarfc

More documents

Recommendations

Info

90 Journal of Personal Finance Figure 1. Stages by Processes of Change (Pro-Change Behavior Systems, 2002) Precontemplation Contemplation Preparation Action Maintenance Consciousness Raising Dramatic Relief Environment Re-evaluation Self-Reevaluation Self-Liberation Social Liberation Helping Relationships Contingency Management Counter-Conditioning Stimulus Control Decisional balance reflects an individual’s relative weighing of the pros and cons of changing (Prochaska, Redding & Evers, 1996). Confidence, the primary construct in self-efficacy, is the situation-specific confidence people have that they can cope with demands or temptations of the situation without reverting to their unhealthy or high-risk habits (Prochaska, et al., 1996). The key to fostering successful change is knowing what stage a person is in, and then using the appropriate strategies (processes) to help the person move forward (Prochaska, et al., 1996). Three contributions of the TTM for supporting behavior change are: 1. The recognition that people are at different points in their readiness to change; 2. The idea of using different strategies to support change depending upon the person’s readiness for change; and 3. Assuming a developmental process in which new challenges will arise as the person attempts to sustain changes that have been introduced at earlier phases. Application of the TTM to financial behaviors began about 10 years ago. Kerkman (1998) discussed how to use the TTM in financial counseling and presented a case to demonstrate her approach. Bristow (1997) suggested that this model could be used to change people’s financial behavior in Money2000, a USDA extension program on financial education. Money2000 is a successful financial education program that was adopted by 29 states and reported a total dollar impact of $20 million (O’Neill, 2001). Based on the data collected among the program participants in New Jersey and New York in ©2008, IARFC All rights of reproduction in any form reserved.
Volume 6, Issue 2 & 3 91 1998, preliminary evidence indicated that certain processes of change were used more frequently by the participants who reported behavioral changes (Xiao, O’Neill, Prochaska, Kerbel, Brennan, & Bristow, 2004). The present study builds on this literature by focusing on the need to approach the change process differently for clients at different stages of life. Application of the Lifespan Perspective Problematic consumer debt affects people across the lifespan from young adults to the elderly. A growing body of literature addresses the alarming rate at which the newest additions, college-age late adolescents and older age consumers, have entered into the world of troubling debt. For example, credit cards are used by one-third of Americans ages 18 and 19 (Breitbard & Reynolds, 2003). Recent studies of college students found that one credit card was held by at least 70% of the students (Lyons, 2004; Pinto, Mansfield, & Parente, 2004). Hayhoe, Leach, Allen and Edwards (2005) reported that in 2001, 47% of U.S. undergraduate college students had 4 credit cards or more and that 21% had balances between $3,000 and $7, 000. Many students with credit card debt feel forced to put jobs ahead of school in order to keep up with payments, and when faced with academic hearings, some students mention working multiple jobs to pay on debts as reasons for poor academic performance (Mannix, 1999; Norvilitis & Santa Maria, 2002). Consequences of credit card debt among college students may include working multiple jobs; dropping out of school; postponing graduate school; starting off careers with high debts; poor credit ratings leading to an inability to obtain loans, continue education, or acquire a job; and bankruptcy (Lyons, 2004; Mannix, 1999; Norvilitis & Santa Maria, 2002). College students are not the only age group for whom concerns about credit card debt are rising. In one study, stress related to debt was found to be highest among participants in the Early Adulthood lifespan stage (Drentea, 2000). In Early Adulthood, “exploring intimate relationships” and “childbearing” are of key importance (Newman & Newman, 2006). Many people get married, and a good number have children. Paying for a wedding, supporting children, and buying things for the home are some ways in which people increase their credit card debt at this stage of life (Drentea, 2000; Korn, 2002). According to the Expenditures on Children by Families: 2000 Annual Report, the cost for a married-couple in the middle income bracket ($38,000-$64,000 a year) to raise a child to age 18 in the year 2000 was $165,630 (U.S. Dept. of Agriculture, 2001). From Middle Adulthood to Very Old Age, giving money to adult children and grandchildren has been found to contribute to credit card debt among these age groups (Whitford, 2000). In their book, The Two Income Trap: Why Middle Class Parents Are Going Broke, Warren and Tyagi (2003) outline the many factors that are Research & Theory
Page 1 and 2:
Journal of Personal Finance Tools,
Page 3 and 4:
Volume 6, Issue 2 & 3 3 RESEARCH &
Page 5 and 6:
Volume 6, Issue 2 & 3 5 A Bull Call
Page 7 and 8:
Volume 6, Issue 2 & 3 7 submissions
Page 9 and 10:
Volume 6, Issue 2 & 3 9 Postmaster:
Page 11 and 12:
Volume 6, Issue 2 & 3 11 simplicity
Page 13 and 14:
Volume 6, Issue 2 & 3 13 LIFE FOCUS
Page 15 and 16:
Volume 6, Issue 2 & 3 15 understand
Page 17 and 18:
Volume 6, Issue 2 & 3 17 True Value
Page 19 and 20:
Volume 6, Issue 2 & 3 19 Financial
Page 21 and 22:
Volume 6, Issue 2 & 3 21 stream, an
Page 23 and 24:
Volume 6, Issue 2 & 3 23 References
Page 25 and 26:
Volume 6, Issue 2 & 3 25 These valu
Page 27 and 28:
Volume 6, Issue 2 & 3 27 ity. It is
Page 29 and 30:
Volume 6, Issue 2 & 3 29 work. Bein
Page 31 and 32:
Volume 6, Issue 2 & 3 31 TEN HEALTH
Page 33 and 34:
Volume 6, Issue 2 & 3 33 Financial
Page 35 and 36:
Volume 6, Issue 2 & 3 35 also subje
Page 37 and 38:
Volume 6, Issue 2 & 3 37 Retiree He
Page 39 and 40: Volume 6, Issue 2 & 3 39 Assistance
Page 41 and 42: Volume 6, Issue 2 & 3 41 typical no
Page 43 and 44: Volume 6, Issue 2 & 3 43 eventually
Page 45 and 46: Volume 6, Issue 2 & 3 45 assessment
Page 47 and 48: Volume 6, Issue 2 & 3 47 Merlis, M.
Page 49 and 50: Volume 6, Issue 2 & 3 49 UNDERSTAND
Page 51 and 52: Volume 6, Issue 2 & 3 51 Annual emp
Page 53 and 54: Volume 6, Issue 2 & 3 53 As previou
Page 55 and 56: Volume 6, Issue 2 & 3 55 contributi
Page 57 and 58: Volume 6, Issue 2 & 3 57 must be in
Page 59 and 60: Volume 6, Issue 2 & 3 59 Act also c
Page 61 and 62: Volume 6, Issue 2 & 3 61 References
Page 63 and 64: Volume 6, Issue 2 & 3 63 These type
Page 65 and 66: Volume 6, Issue 2 & 3 65 ENTER YOUR
Page 67 and 68: Volume 6, Issue 2 & 3 67 total retu
Page 69 and 70: Volume 6, Issue 2 & 3 69 First, at
Page 71 and 72: Volume 6, Issue 2 & 3 71 Figure 4:
Page 73 and 74: Volume 6, Issue 2 & 3 73 The user c
Page 75 and 76: Volume 6, Issue 2 & 3 75 Ibbotson A
Page 77 and 78: Volume 6, Issue 2 & 3 77 Income Rep
Page 79 and 80: Volume 6, Issue 2 & 3 79 asset allo
Page 81 and 82: Volume 6, Issue 2 & 3 81 maintain t
Page 83 and 84: Volume 6, Issue 2 & 3 83 Table 4 Ad
Page 85 and 86: Volume 6, Issue 2 & 3 85 Tezel, A.
Page 87 and 88: Volume 6, Issue 2 & 3 87 the outsta
Page 89: Volume 6, Issue 2 & 3 89 Table 1 De
Page 93 and 94: Volume 6, Issue 2 & 3 93 Worry and
Page 95 and 96: Volume 6, Issue 2 & 3 95 Table 2 (c
Page 97 and 98: Volume 6, Issue 2 & 3 97 Q1 = 20-27
Page 99 and 100: Volume 6, Issue 2 & 3 99 significan
Page 101 and 102: Volume 6, Issue 2 & 3 101 in Later
Page 103 and 104: Volume 6, Issue 2 & 3 103 Reference
Page 105 and 106: Volume 6, Issue 2 & 3 105 Lee, J.,
Page 107 and 108: Volume 6, Issue 2 & 3 107 Xiao, J.
Page 109 and 110: Volume 6, Issue 2 & 3 109 educating
Page 111 and 112: Volume 6, Issue 2 & 3 111 stock is
Page 113 and 114: Volume 6, Issue 2 & 3 113 Table 1 i
Page 115 and 116: Volume 6, Issue 2 & 3 115 Hypothesi
Page 117 and 118: Volume 6, Issue 2 & 3 117 defined a
Page 125 and 126: Volume 6, Issue 2 & 3 125 Conclusio
Page 127 and 128: Volume 6, Issue 2 & 3 127 Fama, E.
Page 129 and 130: Volume 6, Issue 2 & 3 129 • Marke
Page 131 and 132: Volume 6, Issue 2 & 3 131 Advertise
show all

3433-vol. 6 issue 2-3.pmd - iarfc

Create successful ePaper yourself

Delete template?

Save as template?