The purpose of this study was to test hypotheses derived from the systems theory of family resource management in the area of family financial management. Money managers in 123 households in central Iowa were interviewed during fall 1986. A path analysis model based on multiple regression analyses was tested. The typical household money manager was a married, 49-year-old woman in a two-member household with a median after-tax income of $20,760. Money managers who were more knowledgeable practiced more recommended planning and implementing behaviors than less knowledgeable money managers. Households were more likely to have a higher level of net worth if the money manager used optimum planning practices and were more satisfied if the money manager used recommended implementing practices. Because this study suggests that money managers who use the principles of financial management do achieve greater net worth and satisfaction, educators should target their efforts toward the identified competencies.

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