Headlines regularly report on the changing or unmet needs of households and are often focused on costs of healthcare swamping household resources or childcare costs, forcing families to make tradeoffs that negatively influence children or society. Development of impactful educational programming and public policy necessitates an understanding of various households’ allocations of resources, specially the poor, food insecure households. In order to explore households’ relative prioritization of expenditures, a survey was conducted in this manuscript with a sample of Midwest residents (n = 1263), with the objective of evaluating the relationship between household demographics and budgeting prioritization of six expenditure categories. Individual respondent’s relative prioritization for budgeting categories was estimated using a best-worst experiment for six expenditure categories. Housing was the most important expenditure category identified for the sample. Housing also received the largest share of relative importance for two of four latent classes identified. For both low and the very low food secure households a significant and positive relationship was found between their food security status and the relative importance placed on childcare and transportation. Identification of segments of respondents with specific priorities (e.g., childcare expenditures) may aid in the development of impactful policies, particularly for at-risk populations (e.g., food insecure households).
Brown, S., Hole, A. R., & Kilic, D. (2014). Out-of-Pocket Health Care Expenditure in Turkey: Analysis of the 2003-2008 Household Budget Surveys. Economic Modeling, 41, 211-218. https://doi.org/10.1016/j.econmod.2014.05.012
Ferdous, N., Abdul, R. P., Chandra, R. B., & Ram, M. P. (2010). A Comprehensive Analysis of Household Transportation Expenditures Relative to Other Goods and Services: An Application to United Sates Consumer Expenditure Data. Berlin: Springer Science and Business Media.
Kalwij, A., & Salverda, W. (2007). The Effects of Changes in Household Demographics and Employment on Consumer Demand Patterns. Applied Economics, 39, 1447-1460. https://doi.org/10.1080/00036840500474256
McGarth, M. (2016). 63% of Americans Don’t Have Enough Savings to Cover a $500 Emergency. Forbes. https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/maggiemcgrath /2016/01/06/63-of-americans-dont-have-enough-savings-to-cover-a-500-emergency/ &refURL=&referrer=#5e50e9c34e0d
Morgan, C. J., Dominick, S. R., Widmar, N. J. O., Yeager, E. A., & Croney, C. C. (2016). Perceptions of Corporate Social Responsibility of Prominent Fast Food Establishments by University Students. Journal of Food Distribution Research, 47, 3.
PEW Charitable Trusts (2015). The Role of Emergency Savings in Family Financial Security How Do Families Cope with Financial Shocks? The PEW Charitable Trusts: Briefs. http://www.pewtrusts.org/en/research-and-analysis/issue-briefs/2015/10/the-role-of-emergency-savings-in-family-financial-security-how-do-families
Pollack, E. C., Griffin, B. A., & Lynch, J. (2013). Housing Affordability and Health among Homeowners and Renters. American Journal of Preventive Medicine, 39, 515-521. https://doi.org/10.1016/j.amepre.2010.08.002
Siegel, C. (2013). Why Didn’t They Teach Me This in School? 99 Personal Money Management Principles to Live By. Simple Strategic Solutions LLC. CreateSpace Independent Publishing Platform. South Carolina.
USDA ERS (2012). U.S. Household Food Security Survey Module: Three-Stage Design, with Screeners. https://www.ers.usda.gov/topics/food-nutrition-assistance/food-security-in-the-us/survey-tools/#household