Exploring the relationship of economic, sociological, and psychological factors to the savings behavior of low- to moderate-income households

Michael S. Gutter, Celia R. Hayhoe, Sharon A. Devaney, Jinhee Kim, Cathy F. Bowen, Michael Cheang, Soo Hyun Cho, David A. Evans, Elizabeth Gorham, Jean M. Lown, Teresa Mauldin, Catherine Solheim, Sheri Lokken Worthy, Rachel Dorman

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)86-101
Number of pages16
JournalFamily and Consumer Sciences Research Journal
Volume41
Issue number1
DOIs
StatePublished - Sep 1 2012

All Science Journal Classification (ASJC) codes

  • Cultural Studies
  • Sociology and Political Science

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