Effectiveness of/to the market and household finance has always been a problem in relation to functioning of enterprises. Part of the process of an effective management household finance is through allocation of resources such as raising funds, maintenance of the level of costs, and the standard living of the household and this varies depending unto the structure of income and its household expenditure. There are different ways to measure the effectiveness of a financial management its different dimensions. Therefore, Effectiveness of household finance management to the financial life cycle has a great significant/ value to the markets and household/ to an individual because of the different dimensions and approaches it has to offer.
One of the concerns of this research is the effectiveness of Financial Management. Thus, effectiveness seems that is it not that clearly defined because of the different aspects/ contexts it constructs. That is why they ended up having different approaches to research and ponder on. It is classified into two different models in order to measure the effectiveness of a financial management. The first model of effectiveness is what we call a One-dimensional approach which means that a single measure has been used and either of the assessments is a success or a failure. It is divided into the five different interpretation of effectiveness; these are Teleogical approach, System approach, Traditional Approach, holistic Approach and the Evolutionary model Approach. Each has its own function and definition depending on the preferable approach of an individual. Teological Approach is an approach in which it expressed at the lowest possible cost by the targets. System Approach is when …..
Through analyzing the effectiveness of approaches in other scientific fields of organizations should be paid attention to the second model of effectiveness which is the Multi-Dimensional approach to effectiveness. These are categorized into the different dimension that is/are based on the needs of its multi-criteria evaluation. The proposed approach to the efficiency of the household is according to the following dimensions: economic, praxeological, behavioral, social, and system dimension.