EconPapers    
Economics at your fingertips  
 

Household financial planning and savings behavior

Dirk Brounen, Kees G. Koedijk and Rachel Pownall ()

Journal of International Money and Finance, 2016, vol. 69, issue C, 95-107

Abstract: Greater personal responsibility toward financial decision-making is being advocated on a global basis. Individuals and households are encouraged to take a more active approach to personal finance. In this paper, we examine behavioral factors, which lead households toward savings and financial planning across a panel of 1253 Dutch households. In line with the available literature, we find that an individual's propensity to save decreases with age and is higher among the financial literate. Moreover, we find that saving behavior varies across generations, and is significantly dominant among baby boomers. This generation effect, however, weakens once we account for more individual specifics. Our results offer evidence for parental influence, and for the effects of the psychological and behavioral metrics of numeracy, self-efficacy, locus of control and future orientation. A good understanding of these personality variables helps to explain why some take financial responsibility while others do not.

Keywords: Household finance; Financial literacy; Personality (search for similar items in EconPapers)
JEL-codes: D91 E21 G2 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0261560616300572
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Household Financial Planning and Savings Behavior (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:69:y:2016:i:c:p:95-107

DOI: 10.1016/j.jimonfin.2016.06.011

Access Statistics for this article

Journal of International Money and Finance is currently edited by J. R. Lothian

More articles in Journal of International Money and Finance from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-05-19
Handle: RePEc:eee:jimfin:v:69:y:2016:i:c:p:95-107