The Effects of Perceived Locus of Control and
Perceived Income Adequacy on Satisfaction with
Financial Status of Rural Households
Ujang Sumarwan
Bogor Agricultural University
Tahira K. Hira
Iowa State University
ABSTRACT: The purpose of this study is to examine the relationships among se-
lected socioeconomic variables—perceived locus of control, perceived income adequacy,
and satisfaction with financial status. Results of the study indicate that age, household
income, household net worth, perceived locus of control, and perceived income ade-
quacy are significantly related to satisfaction with financial status. Household income
and household net worth have indirect effects on satisfaction through perceived locus of
control and perceived income adequacy. Perceived locus of control also has an indirect
effect on satisfaction through perceived income adequacy. These findings suggest that
counselors and educators should emphasize the importance of perceptions of income
adequacy and control over financial aspect in their courses and programs.
KEY WORDS: perceived income adequacy, perceived locus of control, satisfaction
with financial status, socioeconomic variables.
Introduction
Katona (1975) suggested that psychological concepts such as per-
ception, attitude, value, optimism, pessimism, and satisfaction are
Journal Paper No. J-14499 of the Iowa Agriculture and Home Economics Experiment
Station, Ames, Iowa. Project No. 2809.
Ujang Sumarwan is Lecturer in the Department of Community Nutrition and Family
Resources, College of Agriculture, Bogor Agricultural University, Bogor, Indonesia. His
research interests include consumer credit and family resource management. He received
his Ph.D. from Iowa State University in 1993.
Tahira K. Hira is Professor in the Department of Human Development and Family
Studies, 1086 LeBaron Hall, Iowa State University, Ames, Iowa 50011-1120. Her research
interests include family financial management and consumer bankruptcy. She received her
Ph.D. from the University of Missouri.
Journal of Family and Economic Issues, Vol. 14(4), Winter 1993
© 1993 Human Sciences Press, Inc. 343