A Framework of Asset-Accumulation Stages and Strategies

Sondra Beverly (), Amanda Moore and Mark Schreiner
Additional contact information
Amanda Moore: Washington University in St. Louis

Development and Comp Systems from University Library of Munich, Germany

Abstract: We propose that asset accumulation occurs in three stages. In the first stage (reallocation), current resource inflows must exceed current outflows. To meet this objective, people reallocate resources from current consumption, current leisure, or future consumption or leisure. In the second stage (conversion), people may convert resources from liquid to illiquid forms. In the third stage (maintenance), individuals resist temptations to dissave. We suggest that people adopt psychological and behavioral strategies to achieve each of these objectives. Putting the two types of strategies together with the three stages of asset accumulation results in six strategy groups. We provide examples of each strategy group and discuss implications related to encouraging account ownership among the unbanked, improving asset- accumulation programs, and improving financial-education curricula.

Keywords: Saving; asset accumulation; self-constraint; pyschological savings strategies (search for similar items in EconPapers)
JEL-codes: D91 I3 N3 O51 (search for similar items in EconPapers)
Date: 2001-09-05
New Economics Papers: this item is included in nep-mfd
Note: Type of Document - Adobe Acrobat 3.0; prepared on Windows 98; to print on Adobe Acrobat 3.0; pages: ; figures: Included in pdf file
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/dev/papers/0109/0109004.pdf (application/pdf)

Related works:
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:wpa:wuwpdc:0109004

Access Statistics for this paper

More papers in Development and Comp Systems from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ( this e-mail address is bad, please contact ).