Savings and Family Functioning During the 2008 Recession : An Exploratory Study with Lower Income Singaporeans

This study aims to advance the understanding of how families adjust to a dramatic economic recession. Using a survey of 200 low- to moderate-income households in Singapore, this study analyzes how changes in economic resources (in particular assets) are associated with family strains and family functioning. We also explore how family strain may mediate the relationship between economic resources and family functioning. Key findings of this study are as follows: (1) a majority of the sample experienced reduced economic resources; (2) a reduction of savings increased family strain; (3) households experiencing decreases in savings have lower levels of family functioning measured by family social support and family cohesiveness; and (4) savings and family strains were found to have direct relationships with family social support and family cohesiveness rather than mediating relationships. This paper concludes with several implications for policy and practice