Teaching children to save: What is the best strategy for lifetime savings?

Alessandro Bucciol and Marcella Veronesi

Journal of Economic Psychology, 2014, vol. 45, issue C, 1-17

Abstract: We study the effect of alternative parental teaching strategies on the propensity to save and the amount saved during adulthood. Using a panel dataset from the Dutch DNB Household Survey we find that parental teaching to save increases the likelihood that an adult will save by 16%, and the saving amount by about 30%. The best strategy involves a combination of different methods (giving pocket money, controlling money usage, and giving advice about saving and budgeting). The effect of parental financial socialization is persistent with age, but decays at elder age for the propensity to save.

Keywords: Saving; Teaching to save; Children; Pocket money; Financial socialization (search for similar items in EconPapers)
JEL-codes: D12 J13 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (41)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167487014000580
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Teaching Children to Save and Lifetime Savings: What Is the Best Strategy? (2013)
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:joepsy:v:45:y:2014:i:c:p:1-17

DOI: 10.1016/j.joep.2014.07.003

Access Statistics for this article

Journal of Economic Psychology is currently edited by G. Antonides and D. Read

More articles in Journal of Economic Psychology from Elsevier
Bibliographic data for series maintained by Catherine Liu ().