Exploring the Relationship of Economic, Sociological, and Psychological Factors to the Savings Behavior of Low‐ to Moderate‐Income Households

Bibliographic Data

ID6061831
AuthorsMichael S Gutter (University of Florida, corresponding author), Celia Ray Hayhoe (Virginia Tech), Sharon A Devaney (0000-0002-6870-0033, Purdue University), Jinhee Kim (0000-0002-6439-792X, University of Maryland), Cathy Faulcon Bowen (Pennsylvania State University), Michael Cheang (University of Hawaiʻi at Mānoa), Soo Hyun Cho (0000-0002-8996-2489, South Dakota State University), David Allan Evans (0000-0003-4059-4416, Purdue University), Elizabeth Gorham (South Dakota State University), Jean M Lown (Utah State University), Teresa Mauldin (University of Georgia), Catherine Solheim (0000-0002-8957-2288, University of Minnesota), Sheri Lokken Worthy (0000-0001-7069-830X, Mississippi State University), Rachel Dorman (University of Florida)
Year2012
Volume41
Issue1
Pages86-101
Publication date2012-09-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueFamily and Consumer Sciences Research Journal (JOURNAL)
Journal identifiersISSN: 1077-727X • E-ISSN: 1552-3934
PublisherWiley (PUBLISHER • GB)
DOI10.1111/j.1552-3934.2012.02130.x
OpenAlexW1972021268
LanguageEN
Citations received6
References cited20

Applying a multidisciplinary approach, this study examined economic, sociological, and psychological concepts to understand individual savings behavior with a national sample of low‐ to moderate‐income families (N = 826). Multinomial logistic regression results showed that some of the economic, sociological, and psychological factors were statistically significant in explaining whether a person had only a savings account or both savings and investing accounts compared to having no savings or investment accounts. Economic factors had a more robust relationship with savings behavior when compared to sociological and psychological factors. Specifically, age and a financial behavior score were significantly related to the likelihood of having a savings account while income, net worth, and education were significantly related to the likelihood of having both savings and investment accounts. The number of information sources that a person used (a sociological factor) was significantly related to having both savings and investment accounts. The length of a person's planning horizon and the number of perceived barriers (psychological factors) were significantly related to having a savings account. Implications for researchers, policy makers, educators, and counselors are discussed

Actuarial science · Demographic economics · Economics · Multinomial logistic regression · Sociology · Statistics · Financial Literacy, Pension, Retirement Analysis · Gender, Labor, and Family Dynamics · Housing Market and Economics · Psychology · Social Psychology

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