Financial decisions in the household

Financial decisions are a frequent occurrence within households. Depending on characteristics of the relationship between household members, the situation, and the concrete decision object, decisions can either be made jointly by multiple members of the household or individually by one member. This chapter outlines the four types of financial decisions (spending, saving and credit use, investment, money management) and identifies key parameters that are specific to and guide each of these decisions. The parameters that matter for a decision vary depending on whether a decision is being made individually or jointly. To understand the theoretical and practical implications of a decision it is, thus,necessary to understand whether or not a decision is being made jointly. We delve into this question by empirically assessing observed parental as well as intended own financial decision profiles; thus capturing possible intergenerational and gender influences. Results show a trend towards joint decisions in a household that appears at odds with increased financial autonomy of the spouses, current marketing communication strategies, and research in the field of financial decision making.