Cash Flow Management: A Framework Of Daily Family Activities

Written By: Glenn Muske and Mary Winter

The purpose of this paper is to develop a framework to explain and describe the daily cash flow management processes of families. From data gathered through semi-structured interviews, themes are developed and linked into a daily cash flow management framework. The proposed model suggests that families have a process for managing money. The process focuses on short-term viability through safety, control, comfort, and routine aspects. Cash flow activities are motivated by the near future, feelings and values, experience, and situational knowledge. The framework fills a gap in existing research about motivating factors underlying the actual money management patterns of families. Key Words: Cash flow management, Family finance, Family resource management, Money management, Personal financial behavior