10: Exploring Money Conflict Flashcards
Definition of Conflict
A state of opposition between ideas, interests, and needs. Conflict occurs when two or more parties express differences in their ideas, interests, and needs. These differences can range from a mild amount of friction to intense and persistent arguments.
Definition of Money Conflict
Simply conflict that occurs specifically over financial resources. Money can mean anything from cash in a checking account to an investment account, and can even encompass personal property or real estate.
Contexts of Money Conflict
Money conflict occurs within a variety of relationship contexts, such as couples, friends, parent-child, and across familial generations and within family businesses.
Research on Money Conflict in Couples
Money conflict between couples is highly prevalent, pervasive, often very intense, typically left unresolved, and can be highly predictive of divorce.
Research on Money Conflict in Family Relationships
Money conflict is inherent within family relationships across generations and within the parent-child relationship. The extent to which mutual respect and gratitude is expressed when financial support is given promotes higher levels of well-being.
Research on Money Conflict in Family-Owned Businesses
Relationship conflict within the family can affect the financial performance of the family business. Money and relationship issues are often intertwined.
Purpose of Conflict Theory in Understanding Money Conflict
Conflict Theory helps us understand how money conflict is formed and what forces perpetuate this conflict. Moreover, it provides a growth-oriented view of conflict that promotes forward momentum, towards action and change.
First Assumption of Conflict Theory: Self-Orientation
This is closely connected to the second assumption, existence of and confrontation over scarce resources.
Second Assumption of Conflict Theory: Existence of and Confrontation over Scarce Resources
Societies and households are organized systems that operate under a system of perpetually scarce resources, which leads to ongoing confrontation and competition.
Third Assumption of Conflict Theory: Conflict is Different for Families
This assumption helps us understand why conflict within families and couples tends to be associated with stress. Families have different resource needs than other groups.
Fourth Assumption of Conflict Theory: Conflict can be Classified
Conflict can be classified as macro or micro-social. The macro-social perspective focuses on conflict between classes, whereas the micro-social perspective operates within the family system.
Fifth Assumption of Conflict Theory: Conflict is Positive
Conflict is actually at the root of progress and change. With conflict comes adaptation, compromise, solidity, unity, and clarity.
Five Fundamental Ways People Respond to Conflict (Conflict Styles)
Competing, Avoiding, Accommodating, Compromising, and Collaborating. These vary in assertiveness and cooperativeness.
Competing Conflict Style
Characterized by high levels of assertiveness and low levels of cooperativeness. Those that use this style are more concerned about winning the argument.
Avoiding Conflict Style
Characterized by low levels of assertiveness and low levels of cooperativeness. Those exhibiting avoidance tend to avoid conflict entirely.
Accommodating Conflict Style
High in cooperativeness and low in assertiveness. Those that use this style tend to yield to accommodate the other person.
Compromising Conflict Style
Incorporates moderate levels of assertiveness and cooperativeness where both parties express their needs but usually yield those needs to some extent.
Collaborating Conflict Style
Requires a high level of assertiveness and cooperativeness. This approach discovers the underlying need of each party.
First Component of the Conflict Resolution Framework: Setting the Stage
Recognize that clients will argue about money, which is a normal and natural part of life. Help clients embrace money arguments as an opportunity for growth.
Second Component of the Conflict Resolution Framework: Separate the People from the Problem
Be tough on the problem, not the person. Focus energy on resolving the problem at hand, not in tearing down the other person.
Example of Reframing (Separate People from Problem)
From: ‘You spend too much!’ To: ‘Our income can’t support our expenses’.
Third Component of the Conflict Resolution Framework: Focus on Interests, not Positions
Interests focus on why, and positions focus on what. If conflict is resolved based upon positions, then one or both parties is likely to get something less than what they need.
Examples of Interests vs. Positions
Position: ‘I want to buy a vacation home.’ Interest: ‘I want to create family experiences’.
Examples of Basic Human Needs (Powerful Interests)
Security, economic well-being, a sense of belonging, recognition, and control over one’s life.
Fourth Component of the Conflict Resolution Framework: Generate Options for Mutual Gain
With an open and creative mindset, parties to the conflict should generate as many options as possible before making a decision.
Fifth Component of the Conflict Resolution Framework: Establish Objective Criteria
Objective criteria create natural boundaries for the solution and are grounded in fairness, efficiency, and scientific and/or analytical merit.
Define conflict in general terms.
Conflict is a state of opposition between ideas, interests, and needs. It occurs when two or more parties express differences in their ideas, interests, and needs. These differences can range from mild friction to intense and persistent arguments.
What is money conflict specifically?
Money conflict is conflict that occurs specifically over financial resources. This can include disagreements about cash, investments, personal property such as cars or heirlooms, or real estate.
Name three relationship contexts where money conflict commonly occurs.
- Couple relationships
- Parent-child relationships
- Family businesses
According to research, list four characteristics of money conflict in couple relationships.
- Highly prevalent
- Pervasive and often intense
- Typically left unresolved
- Highly predictive of divorce
How do spouses typically rate conflicts about money compared to other conflict topics?
Spouses rate conflicts regarding money as more intense and significant than other conflict topics.
Why might money conflicts be more problematic than conflicts about other topics?
Money conflicts tend to be more problematic because they are often emotionally charged, tied to values, connected to power dynamics, and linked to deep-seated beliefs about security and self-worth.
What are the five basic assumptions of Conflict Theory?
- Self-orientation
- Existence of and confrontation over scarce resources
- Conflict is different for families
- Conflict can be classified
- Conflict is positive for relationships
How does the ‘self-orientation’ assumption in Conflict Theory relate to money conflict?
Self-orientation means individuals are naturally inclined to protect their own interests. With money being a finite resource, individuals may prioritize their own financial needs and wants over those of others, leading to conflict when these interests clash.
Explain why ‘conflict is different for families’ according to Conflict Theory.
- Membership is not voluntary (except for the initial spousal relationship)
- They have different resource needs than other groups
- Events within a family have greater impact on individual members
- Families tend to withstand more conflict since family breakdown is more significant than in voluntary groups
How can conflict be ‘positive for relationships’ according to Conflict Theory?
- Adaptation and compromise
- Solidity and unity
- Greater clarity
- New levels of intimacy
- Relief of tension and resentment
- Identification of problems
- Increased understanding
- Renewed appreciation for the relationship
Name the five conflict styles identified by Thomas and Kilmann.
- Competing
- Avoiding
- Accommodating
- Compromising
- Collaborating
Describe the ‘competing’ conflict style in terms of assertiveness and cooperativeness.
Competing is characterized by high assertiveness and low cooperativeness. Those using this style are more concerned about winning the argument through power and control than preserving the relationship.
When might the ‘avoidance’ conflict style be appropriate?
- The conflict is deemed trivial
- The issue is not worth the potential relationship damage
- More important issues require attention
- Immediate resolution is not necessary
Describe the trade-offs in the ‘compromising’ conflict style.
- Wins a little, but loses a little too
- Expresses their needs but yields them to some extent
- May not get their underlying interests fully met
- May settle for a ‘fair’ solution that doesn’t fully satisfy either party
What makes the ‘collaborative’ conflict style optimal but challenging?
Collaboration is optimal because it aims to meet everyone’s underlying needs and preserve relationships. However, it’s challenging because it requires:
* High levels of assertiveness and cooperativeness from all parties
* Open and vulnerable communication
* Patience and creativity
* Willingness to look beyond positions to interests
* More time and emotional energy
Explain ‘The Orange Story’ and what it teaches about conflict styles.
In the Orange Story, two children want the last orange. Instead of cutting it in half (compromise), their mother discovers one child needs the peel for a recipe while the other wants the fruit for juice. This teaches that collaboration (discovering underlying interests) can lead to better solutions than compromise (dividing the resource equally).
In the Orange Story, what positions did the children take, and what were their interests?
- Positions: Both children’s position was ‘I want the orange.’
- Interests: One child’s interest was making a recipe using the peel. The other child’s interest was making juice using the fruit inside.
What are the three key elements of ‘setting the stage’ for conflict resolution?
- Normalizing and expecting money arguments
- Framing conflict as an opportunity for growth
- Balancing power between parties
List the four principles of the conflict resolution framework for money arguments.
- Separate the people from the problem
- Focus on interests, not positions
- Generate options for mutual gain
- Establish objective criteria
Provide an example of reframing to ‘separate people from the problem.’
- Original statement (focusing on the person): ‘You spend too much!’
- Reframed statement (focusing on the problem): ‘It seems like you’re concerned that our income can’t support our expenses, and you’re frustrated that we might not be on the same page about our budget.’
What are examples of ‘basic human needs’ that might represent underlying interests in money conflicts?
- Security
- Economic well-being
- Sense of belonging
- Recognition
- Control over one’s life
What is the purpose of ‘establishing objective criteria’ in resolving money conflicts?
- Creates natural boundaries for solutions
- Grounds decisions in fairness and efficiency
- Provides scientific/analytical merit to decisions
- Helps set parameters for what’s financially feasible
- Can include financial analyses, rules, regulations, or expert opinions
What should a financial therapist consider when balancing power in money conflict discussions?
- Create a relaxed, neutral setting to minimize stress
- Ensure both parties have equal understanding of financial information
- Provide financial education if needed for the less financially involved person
- Be aware of who controls financial decision-making
- Consider who makes more money and how that affects power dynamics
How should a financial therapist approach the brainstorming of solutions in money conflicts?
- Facilitate creative brainstorming
- Avoid proposing solutions too early (which can inhibit client creativity)
- Encourage generating as many options as possible before making decisions
- Help clients focus on solutions that address underlying interests
- Create an open, judgment-free environment for idea generation
What is the risk of offering objective criteria too early in the conflict resolution process?
- Shut clients down
- Inhibit the creative process
- Undermine the conflict resolution process
- Prevent clients from fully exploring their interests
- Limit the range of potential solutions
How does conflict theory explain money conflict in family businesses?
- Family relationship conflict can affect financial performance
- Power dynamics within the family can affect business decisions
- Resource allocation decisions may be influenced by family relationships
- Business and family needs may compete for the same resources
- Family membership complicates typical business relationships
How might gender play a role in money conflict according to conflict theory?
- Macro-social perspective: Societal values, gender expectations, and wage inequities
- Micro-social perspective: Gender-based access to resources within the family
- Historical power imbalances that affect financial decision-making
- Different socialization around money management for men and women
Explain how stress and money are connected to conflict according to conflict theory.
- Families experience unique stresses due to non-voluntary membership
- Money represents a scarce resource that directly impacts survival
- Financial strain can lead to more hostile interactions between family members
- Families may endure more financial conflict due to the high stakes of family breakdown
- Money conflicts within families tend to be more intense and recurrent due to these factors
