Financial Management Behavior and Subjective Level of Consumption of Rural Households

농촌가계의 재무관리행동과 주관적 소비수준

The main purpose of this study was to investigate the relationship between financial management behavior and subjective level of consumption of rural households. In this study, financial management behavior was defined to include 'budgeting' and 'expenditure management'. Data were collected from the 215 rural households in 13 different provinces of Chungnam, and 203 households were used for the analysis. Frequency distribution, means, and path analysis were employed for the statistical analysis. Major findings were as follows. Budgeting behavior had a significant positive effect on rural households' subjective level of consumption, while expenditure management behavior didn't have any significant effect. This implies that active and systematic financial management behavior such as budgeting is more effective than relatively passive financial management behavior like expenditure management on the enhancement of economic well-being of rural households. Age, education, and number of non-farm earners had indirect effects on the subjective level of consumption through budgeting behavior. Income stability had a direct effect and income had both direct and indirect effects on the subjective level of consumption.