Theoretical studies suggest narrow framing underlies individuals' saving decisions. When narrow framing is applied to retirement savings decisions, narrow framers tend to make decisions about present consumption without considering future consumption, i.e., saving for consumption in retirement. Time preference for the present and narrow framers' preference to maintain the status quo lead to a decision that is less likely to increase savings for retirement. This study provides empirical evidence that narrow framing bias affects retirement savings decisions. Using a two‐part model, the probit estimation indicates narrow framers anticipated being less willing to increase retirement savings contributions compared to broad framers, and the OLS regression estimates that narrow framers anticipated contributing less than broad framers. Here, narrow framers anticipated being less willing to increase retirement savings (62.6% vs. 71.9%) and contributing less ($70.90 vs. $88.40) than broad framers, thus providing empirical evidence regarding the effects of behavioral biases on financial decisions.

This article uses a random digit dial probability sample (N = 328) to examine the relationship between credit card use behaviors and household well-being during a period of severe economic recession: The Great Recession. The ability to measure the role of credit card use during a period of recession provides unique insights to the study of credit behavior because of the knowledge that all respondents have the same macroeconomic constraint. Framed by the assumptions of the permanent income hypothesis and the life-cycle savings hypothesis, multinomial logistic regression was used to estimate the relationship between credit card use behaviors and three measures of household well-being: emotional well-being, financial well-being, and general household financial condition.

This study examined how two self-regulatory modes, locomotion and assessment, relate to the willingness to increase retirement savings. Locomotion is concerned with making things happen ("just do it"). Assessment is concerned with critical evaluation ("do the right thing"). We hypothesized that individuals who score high (vs. low) in locomotion, but not those who score high (vs. low) in assessment, would be more willing to increase their savings for retirement. In addition, because high (vs. low) assessment can lead to doing the right thing in terms of seeking to maximize economic returns, we hypothesized that combining high locomotion with high assessment would especially motivate willingness to increase retirement savings. We found support for both hypotheses from a survey of university employees.

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Depression, Economic hardships, Employment, Life circumstances, Welfare use,