Download or read book Effect of Saving Motives and Horizon on Saving Behavior written by Patti J. Fisher and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this research is to explore saving motives and saving horizon using a large, nationally representative dataset, the Survey of Consumer Finances. The framework is based on prospect theory, in which consumption and saving decisions are based on a reference point rather than on lifetime income. Prospect theory also posits that individuals construct various mental accounts, thereby allowing for households to have multiple saving motives. Since prospect theory does not assume that saving decisions are based on lifetime income, saving horizons are allowed to vary. The emergency and retirement saving motives are found to significantly increase the likelihood of saving regularly. Longer saving horizons are also found to have a highly significant effect on the likelihood of saving, while poor health is shown to have a significantly negative effect on the likelihood of saving. The results show that the saving motives held by households differ by saving horizon, but the exact relationships are unclear. Further research on the link between saving motives, saving horizon, and saving behaviors is needed. It is important for financial professionals and educators to consider a household's saving goals, saving horizon, and health status when making recommendations or developing financial plans.

Download or read book Saving Behavior of U S Households written by Patricia Jo Fisher and published by . This book was released on 2006 with total page 155 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: The main purpose of this dissertation is to explore household saving using a prospect theory approach through the use of the loss aversion model and behavioral portfolio theory. The research begins by investigating the effect of having expected per-period income above or below the reference level as well as the effect of uncertainty on the likelihood of saving based on the loss aversion model. The focus then moves to saving motives based on the ideas of behavioral portfolio theory. The direct measure of saving available in the dataset is saving over the previous year. Saving horizon is also investigated since the saving measure is a short-term measure and some regular savers may not have saved during the past year. The dataset used is the 2004 Survey of Consumer Finances. The sample excludes retired U.S. households for a final number of 3,694 households. Having expected per-period income above the reference level increases the likelihood of saving. Having expected per-period income below the reference level is significantly and negatively related to the likelihood of saving, and has a greater effect on the likelihood of saving than having expected per-period income above the reference. The group of uncertainty variables is significant in explaining the likelihood of saving. In contrast to the theories reviewed, most of the uncertainty variables are not found to increase the likelihood of saving. Saving motives and saving horizon are significant in explaining the likelihood of saving. Saving for a foreseeable expense significantly increases the likelihood of saving in both the models with and without interaction terms. Having a motive to save for the education of children or grandchildren significantly decreases the likelihood of saving in the model without interactions, while this variable is not significant when interactions are added. Inclusion of interactions of saving horizon variables with the saving motive variables is found to be significant in explaining the likelihood of saving, indicating that saving motives do differ by saving horizon.

Download or read book The Psychology of Saving written by Karl Erik Wärneryd and published by Edward Elgar Publishing. This book was released on 1999 with total page 448 pages. Available in PDF, EPUB and Kindle. Book excerpt: Provides an assessment of factors accounting for differences between people who save and people who do not save money, summarizes theories and behavioral research in saving, and explores psychological insights and findings of economists, interpreting them in terms of modern psychology. Offers a historical perspective on the psychology of saving, looks into the psychology of saving in modern economic theories of saving, and discusses the use of cognitive and psychological variables in the study of saving. Gives an integrative framework for the psychology of saving, and discusses implications for studying and influencing the consumer. Annotation copyrighted by Book News, Inc., Portland, OR

Download or read book The Psychology of Financial Consumer Behavior written by Dominika Maison and published by Springer. This book was released on 2019-02-28 with total page 242 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book stresses the psychological perspective in explaining financial behavior. Traditionally, financial behaviors such as saving, spending, and investing have been explained using demographic and economic factors such as income and product pricing. The consequence of this way of thinking is that financial institutions view their clients mostly from the perspective of their income. By taking a psychological approach, this book stresses the perspective of consumers confronted with a quickly changing financial world: the changing of financial offers and products (savings, investments, loans), the changing of payment methods (from cash to cheques, cards and mobile payments), the accessibility and temptation of goods, and the changing of insurance and pension systems. The Psychology of Financial Consumer Behavior provides insight into the thought processes of consumers in a variety of financial topics. Coverage includes perceptions of wealth, the pleasure or pain of spending, cashless transactions, saving and investing, loans, planning for the future, taxes, and financial education. The book holds appeal for researchers, professionals, and students in economics, psychology, economic psychology, marketing and consumer science, or anyone interested in financial behaviors.

Download or read book Determinants of Saving Behavior and Financial Problem written by ELLENE, BBA and SURESH KUMAR, S.T., M.Si. and published by Rasibook. This book was released on 2019-10-25 with total page 75 pages. Available in PDF, EPUB and Kindle. Book excerpt: Nowadays, many Indonesian are suffering from poverty, bankruptcy, and health problem because they do not know how to face a financial problem when Indonesia is facing an economic crisis. When Indonesia is in crisis, the exchange rate falls dramatically; banking credit growth also experienced a significant drop. As a result, many people's savings were lost. The forced unemployment and financial bankruptcy had drastically decreased the living conditions in Indonesia. This research aims to analyze the influence of Financial Literacy, Financial Stress, and Financial Management to Saving Behavior and Financial Problem.

Download or read book Handbook of Behavioural Economics and Smart Decision Making written by Morris Altman and published by Edward Elgar Publishing. This book was released on 2017-05-26 with total page 607 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Handbook is a unique and original contribution of over thirty chapters on behavioural economics, examining and addressing an important stream of research where the starting assumption is that decision-makers are for the most part relatively smart or rational. This particular approach is in contrast to a theme running through much contemporary work where individuals’ behaviour is deemed irrational, biased, and error-prone, often due to how people are hardwired. In the smart people approach, where errors or biases occur and when social dilemmas arise, more often than not, improving the decision-making environment can repair these problems without hijacking or manipulating the preferences of decision-makers. This book covers a wide-range of themes from micro to macro, including various sub-disciplines within economics such as economic psychology, heuristics, fast and slow-thinking, neuroeconomics, experiments, the capabilities approach, institutional economics, methodology, nudging, ethics, and public policy.

Download or read book The Influence of Household Saving Motives on the Propensity to Save and Portfolio Allocation Decisions written by Nurul Shahnaz Ahmad Mahdzan and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Saving Behavior of German Families written by Armin Rick and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Disentangling the Importance of the Precautionary Saving Motive written by Arthur B. Kennickell and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We evaluate the importance of the precautionary saving motive by relying on a direct question about precautionary wealth from the 1995 and 1998 waves of the Survey of Consumer Finances. In this survey, a new question has been designed to elicit the amount of desired precautionary wealth. This allows us to assess the amount of precautionary accumulation and to overcome many of the problems of previous works on this topic. We find that a precautionary saving motive exists and affects virtually every type of household. However, precautionary savings account for only 8 percent of total wealth holdings. Even though this motive does not give rise to large amounts of wealth, particularly for young and middle-age households, it is particularly important for two groups: older households and business owners. Overall, we provide strong evidence that we need to take the precautionary saving motive into account when modeling saving behavior.

Download or read book Individual Behaviors and Technologies for Financial Innovations written by Wesley Mendes-Da-Silva and published by Springer. This book was released on 2018-07-26 with total page 395 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book offers comprehensive examination of research on the relevance of individual behavior and technology to financial innovations. The chapters cover current topics in finance including integrated reporting, people finance, crowdfunding, and corporate networks. It provides readers with an organized starting point to explore individual behaviors and new technologies used in financial innovations. The explicit and growing speed of the spread of new technologies has hastened the emergence of innovation in the field of finance. Topics like the Internet of Things, semantic computing and big data finance are motivating the construction of financial tools that translate into new financial mechanisms. This book strives help readers better understand the dynamic of the changes in financial systems and the proliferation of financial products. Individual Behaviors and Technologies for Financial Innovations is organized in 16 chapters, organized in three parts. Part I has eight chapters that review the research on gender differences in attitudes about risk and propensity to purchase automobile insurance, financial literacy models for college students, wellness and attitude of university students in the use of credit cards, impact of programs income distribution and propensity to remain in employment, financial literacy and propensity to resort to informal financing channels, risk behavior in the use of credit cards by students. Part II reviews the research on financing for startups and SMEs, exploring funding through crowdfunding platform, operating credit unions, and using networks of friends to finance small businesses outside the domestic market. The four chapters of Part III describe contexts of financial innovation in listed companies, including society's demands on their behavior - we discuss motivations for companies to participate in corporate sustainability indexes, corporate performance through their profile of socially responsible investments, influence of networks of social relations in the formation of boards, and management of companies, and also the precariousness of financial decisions in large companies, as well as the role of the internet in corporate communication with the market.

Download or read book Relationship of Saving Motives to Saving Habits written by Patti J. Fisher and published by . This book was released on 2013 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines how saving motives are related to saving habits using Katona's (1975) psychological classification of saving, where households save regularly (discretionary), save irregularly (residual), or do not save. Of the 3,822 non-retired households in the 2007 Survey of Consumer Finances, 46% saved regularly, 32% saved irregularly, and 22% did not save. Precautionary and retirement motives increased the likelihood of saving regularly or irregularly as compared with not saving, but only the retirement motive separated the regular savers from irregular savers. A long-term planning horizon and higher income increased the propensity for regular or irregular saving as compared with not saving, and for saving regularly as compared with irregularly, while low risk tolerance had the opposite effect. Financial advisors, educators, and policymakers should facilitate short- to long-term goal seeking with frequent saving by individuals and families.

Download or read book Save More Tomorrow written by Shlomo Benartzi and published by Penguin. This book was released on 2012-04-12 with total page 288 pages. Available in PDF, EPUB and Kindle. Book excerpt: One of the world’s top experts in behavioral finance offers innovative strategies for improving 401(k) plans. Half of Americans do not have access to a retirement saving plan at their workplace. Of those who do about a third fail to join. And those who do join tend to save too little and often make unwise investment decisions. In short, the 401(k) world is in crisis, and workers need help. Save More Tomorrow provides that help by focusing on the behavioral challenges that led to this crisis inertia, limited self-control, loss aversion, and myopia—and transforms them into behavioral solutions. These solutions, or tools, are based on cutting edge behavioral finance research and they can dramatically improve outcomes by, for example, helping employees: -Save, even if they aren’t ready to do so now, by using future enrollment. -Save more by showing them images of their future selves. -Save smarter by reshuffling the order of funds on the investment menu. Save More Tomorrow is the first comprehensive application of behavioral finance to improve retirement outcomes. It also makes it easy for plan sponsors and their advisers to apply these behavioral tools using its innovative Behavioral Audit process.

Download or read book Education Income and Human Behavior written by Francis T. Juster and published by . This book was released on 1974 with total page 466 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book How Behavioral Habits Mediate the Relationship Between Personality Traits and Savings written by Ufuk Altunbüken and published by . This book was released on 2016-09-15 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2016 in the subject Sociology - Consumption and Advertising, grade: 4.00, Maastricht University, language: English, abstract: The household saving ratio in the UK has dramatically decreased in recent years. Researchers and policy makers increasingly turn to behavioral economics theory to understand the decline and to derive new saving policy initiatives. By combining the existing literature in this field into a single framework, this paper aims to identify whether and to what extent particular saving habits mediate the relationship between personality traits and saving outcomes. For this, survey data from the UK is used and a dichotomous mediation analysis is conducted. It is found that substantial fractions of the effects that personality traits have on saving outcomes arise due to the influence which these personality traits have on specific saving behaviors, namely whether or not households keep their savings separate from their other money, whether or not they save regularly and whether or not they save out of precautionary motives. These findings can be used to design saving schemes which not only address effective saving habits but at the same time also appeal to individuals' personality traits.

Download or read book What Determines the Saving Behavior of German Households written by Daniel Schunk and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Behavioral Finance in the Digital Era written by Elżbieta Kubińska and published by Taylor & Francis. This book was released on 2024-01-03 with total page 198 pages. Available in PDF, EPUB and Kindle. Book excerpt: Due to swift technological change and the resultant digital revolution, a wide range of new digital financial products and services have emerged in the financial markets, as witnessed in the context of the FinTech sector, the economics of blockchain and NFT issuance. This book takes an in-depth look at the challenges faced by individuals making investment decisions in a rapidly changing financial world and presents a concise and thorough overview of the multifaceted approach to investment and savings behavior. It explores behavioral digital finance, referencing the latest theories in economic psychology and financial markets and provides an analysis of the process of saving and investing in the context of our new digital reality, where an understanding of human – AI interaction, its benefits and threats is extremely important. It combines an accessible overview of classical and new behavioral theories, models of financial decision making as well as an analysis of the new trends in financial decision making. Special attention is given to financial decision support systems and the role of financial advice services, which are of growing importance, due to their increasing complexity and difficulty. The book combines theoretical considerations and wide-reaching empirical analyses from a representative sample of international respondents. It deals with the individual approach to human risk-taking, and human – AI interaction, its benefits, and threats. The book explores how people react to algorithms, what drives algorithm aversion and appreciation, and how understanding of those mechanisms can be employed to improve financial advisory systems, and also considers the impact of the Covid-19 pandemic on financial behavior.

Download or read book Essays on Saving Behavior written by Meryl Isobel Motika and published by . This book was released on 2013 with total page 103 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation combines three projects studying saving behavior. The first chapter presents a model of reference-dependent retirement saving behavior using a gain-loss utility function drawn from prospect theory. I show that this model predicts empirical characteristics of retirement saving behavior including adherence to defaults, under-saving, and the positive correlation between saving rates and financial knowledge. An additional testable implication of the model is that more financially-knowledgeable individuals will have wider variance than people with low financial knowledge. Using data from the Health and Retirement Study, I show that this implication is also supported by empirical results. The second chapter investigates the effects of financial training and planning on saving in a laboratory experiment. Subjects choose when to use tokens to watch video clips over the course of a 50-minute session. Boredom encourages subjects to use tokens immediately, while increased video length in later rounds creates an incentive to use them later. Subjects who receive minimal instructions tend to use their tokens early. Intensive training increases saving rates. The planning treatment has no effect on low-training subjects, but leads intensively trained subjects to smooth tokens across the five rounds rather than spending early or waiting until the end. Evidence from correlations between spending tokens early and high elicited discount rate, as well as subjects' comments about struggling to wait before using tokens, provide support for the external validity of this experiment design. The third chapter examines the relationship between `Big 5' personality traits and low saving rates. Several traits are shown to predict under-saving, with low conscientiousness being particularly important and robust. I then investigate whether personality traits also explain the effects of education, financial literacy, and financial planning. This might occur if certain personality types tended to participate in these activities and also tended to save. I find that the effects of education and financial literacy are robust to personality. The influence of financial planning might be explainable by personality-based selection.