Money influences the conduct of relationships and is one of the main mechanisms that government uses to achieve things – either directly through spending decisions or by influencing choices and incentives.

Our interest in finance, relationships and wellbeing stretches from the big issues of the nature of capital markets, through to taxes, benefits and the ways in which resources are allocated.

Money can influence relationships and wellbeing by:

influencing the choices about which relationships to enter – eg, couple penalties in benefits system

influencing choices in the conduct of relationships – eg, financial incentives for colocation

providing a buffer against adverse circumstances and increasing opportunities – one reason why richer elderly people have higher wellbeing

putting relationships under pressure – eg, breakdown of couple relationships due to debt and money worries

strengthening shared purpose – eg, through shared financial interests in family businesses and family associations

reinforcing or changing social norms – eg, by moving from individual to household taxation.