Who manages the household purse? Factors shaping payment task allocation between partners and its implications

This study highlights the multifaceted nature of household payment task division, revealing that a broad spectrum of factors contributes to who takes the lead in executing household payments. The allocation of specific payment tasks is related to partners’ differences in personality traits, enjoyment of payment tasks and available time. Disparities in income and assets also play a significant role, alongside differences in payment knowledge, digital payment experience, and money management skills. Furthermore, individuals tend to replicate the division of payment tasks observed in others. Traditional patterns whereby men manage housing-related payments and women handle grocery expenses, appear across all generations but are most prevalent among the oldest. Greater involvement in household payment tasks is associated with increased financial influence within the household. It also facilitates the ability to take over a partner’s payment responsibilities when needed and enhances early awareness of potential financial issues. In a substantial number of households, one partner is solely responsible for managing specific payments. Strong payment knowledge, digital payment experience, and staying informed about the partner’s payment activities support a smooth transition of responsibilities when necessary.

Keywords: household payments; division of tasks; financial inclusion; gender gap; financial decisions;
JEL codes D12; D83; J16

Working paper no. 851