The Interplay of Financial Safety Nets, Long-Term Goals, and Saving Habits: A Moderated Mediation Study

Congrong Ouyang (), Mindy Joseph, Yu Zhang and Khurram Naveed
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Congrong Ouyang: Department of Personal Financial Planning, Kansas State University, 1324 Lovers Lane, Manhattan, KS 66506, USA
Mindy Joseph: Department of Personal Financial Planning, Kansas State University, 1324 Lovers Lane, Manhattan, KS 66506, USA
Yu Zhang: Department of Personal Financial Planning, Kansas State University, 1324 Lovers Lane, Manhattan, KS 66506, USA
Khurram Naveed: Department of Personal Financial Planning, Kansas State University, 1324 Lovers Lane, Manhattan, KS 66506, USA

IJFS, 2025, vol. 13, issue 1, 1-20

Abstract: Household savings are a long-term financial issue that can undermine the financial well-being of American families if not addressed. This study examines financial planning strategies through the Behavioral Life-Cycle (BLCH) hypothesis, focusing on long-term savings goals, financial safety nets, and foreseeable expenses. Using data from the 2022 Survey of Consumer Finances, a moderated mediation model explores how financial safety nets, self-control, and mental accounting influence saving habits. The findings show that long-term savings goals significantly mediate the relationship between financial safety nets and saving habits, while foreseeable expenses do not significantly moderate this relationship. These results highlight the importance of goal setting in promoting saving behaviors, regardless of specific financial needs. Policymakers can leverage these findings to design initiatives that encourage structured savings programs, while financial advisors should emphasize goal-setting strategies to help households improve their financial security. This research contributes to a deeper understanding of the behavioral and economic factors that drive personal savings, offering valuable insights for both policymakers and financial practitioners aiming to boost financial well-being in households.

Keywords: saving behavior; savings goal; financial safety net; moderated mediation; household finance; consumer behavior; consumer education (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2025
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