Journal of Families and Better Life (가정과삶의질연구)

Korean Home Management Association (가정과삶의질학회)
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Effects of Keeping Financial Records on Financial Soundness of Households

가계부 기록이 가계의 재무건전성에 미치는 영향

  • Son, Jiyeon (Department of Consumer Policy Research, Korea Consumer Agency) ;
  • Park, Jooyung (Department of Consumers' Life Information, Chungnam National University)
  • Received : 2016.03.15
  • Accepted : 2016.06.13
  • Published : 2016.06.30
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Abstract

The Purpose of this study is to find the levels of keeping financial records among Korean households and to reveal the effect of keeping financial records on financial soundness of households. The 2014 Consumer Empowerment Index of the Korean consumer agency, which includes the surveyed results of 1,000 individuals, was analyzed as a secondary dataset. As a result, the following findings emerged during the study. First, 25.9% of consumers replied that they were keeping financial records. Factors associated with keeping financial records were gender and income. Women were more likely to keep financial records than men. Also, income had significant effects on keeping financial records. Second, levels of meeting percentages of financial ratios were highest in the debt to income ratio, which was 81.5%, and lowest in the investment ratio, which was 14.5%. Furthermore, 52.6% met the savings ratio, 40.6% met the emergency funds ratio, 24.6% met the retirement savings ratio. Meeting a percentage of the savings ratio did not fluctuated for 16 years, although the debt to income ratio has decreased around 15% since 1998. Third, keeping a household account book had signigicant influences on meeting percentages of financial ratios. Magnitudes of effects ranged between 1.4-1.8 odds, which were as much as the income effects. In summary, effects of keeping financial records were evidenced in this study. It is suggested that the importance of keeping financial records should be stressed in financial education and counseling programs.

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References

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