This study explored saving behavior among low-income households through the institutional theory of saving behavior by (1) determining asset differences between saving and non-saving households, (2) exploring factors related to saving behavior, and (3) identifying differences between two saving...

Normative analyses of household financial decisions typically assume parameters of the household utility function. Some general issues on parameter assumptions for normative analysis are discussed in this study. We review selected normative household analyses appearing in finance and economics...

Life cycle theory is applied to determine which households are more likely to have negative net worth. Negative net worth household characteristics are examined using data from the 1992, 1995, 1998, 2001, 2004, and 2007 Survey of Consumer Finances. Logit Analysis showed households in survey...

To estimate the monetary value of ideal financial planning advice, we address three types of benefits that planners provide: increasing wealth, preventing loss, and smoothing consumption. We discuss, then reject the possibility of using survey data to obtain valid estimates of the benefit of...

Why do we save? Do saving decisions reflect personal needs to achieve goals in one's life? This study examined the influence of six saving goals constructed both from Life-cycle hypothesis, and Maslow's hierarchical theory of human needs. Even though traditional goals, such as retirement savings...

We examine the effects of self-control mechanisms on saving behavior using the 2013 Survey of Consumer Finances (SCF), following the assumptions of research that analyzed the 1998 SCF. Self-control mechanisms include saving goals, foreseeable expenses, and saving rules. We find a positive effect...

1. This research examines the potential impact of the stock market crash of 2008-2009 on U.S. working households. The Great Recession caused financial problems for many households in terms of unemployment, business losses, and decreases in real estate values, but the broadly based decreases in...

It has been well established in the literature that financial advice leads to informed decision making and improved financial outcomes. However, there is limited evidence regarding the link between financial planner use and attitudes towards retirement saving. As financial planners provide...

Worker decisions on retirement account participation and their investment choices for retirement accounts play an important role in post-retirement income. The interaction between the decisions of husbands and wives was investigated by using a bivariate probit model with a spouse effect. There...

In 2013, 18% of full-time workers aged 35 to 60 who were household heads expected to never retire. We found that factors related to the likelihood of expecting to never retire were more related to a failure to plan rather than a preference for working indefinitely. Most workers stating that they...