Rising Prices and Financial Management Practices of Urban Families in India

Abstract

ing Prices and Financial Management Practices of Urban Families in India
Abstract: The consequences of rising prices and concomitant high cost of living are adverse and cause severe hardships to the families in the form of financial difficulties. The costs associated with financial difficulties are significant for the individuals involved. Personal stress, illness, marital discord, child abuse and loss of home often coincide with financial failure.  The close association between financial difficulties and stress related problems within families indicates the need to address and assess the issue of management practices adopted by the families, when confronting inflation. This paper takes a more eclectic view by recognizing that families need to adapt and adjust to rising prices and financial difficulties by altering their priorities and reallocating their expenditure plans. Rising prices of consumer goods often compel families to drastically alter their consumption and the composition of their savings.