Financial Self-Efficacy and the Saving Behavior of JFCP_29_2_A15_357-368-Retirees

Abstract

This study investigates the relationship between financial self-efficacy (FSE) and saving behavior within a sample of 847 U.S. pre-retirees aged 50 to 70 from the Health and Retirement Study. In accordance with the social cognitive theory of self-regulation, results revealed that FSE is positively related to saving behavior after controlling for sociodemographic attributes, financial characteristics, and saving motives. Understanding how FSE contributes to saving behavior is critical as older workers attempt to bridge the retirement saving gap. Financial counselors and planners can help this population save by cultivating and supporting clients’ FSE throughout the financial planning and counseling process.

Personality and Saving Behavior Among Older Adults

“…The 3M supports this result since situational traits (FSE) are the only traits adjacent to surface traits (saving behavior) and thus, should exhibit the strongest direct relationship and indirectly connect other variables to saving behavior. Moreover, higher FSE was found to support saving behavior, which aligns with existing literature that indicates domain‐specific self‐efficacy supports saving behavior by positively interacting with an individual's self‐regulatory system (Asebedo and Seay In press; Bandura ). Consequently, FSE is a key psychological characteristic that explains saving behavior and is central in understanding the link between other psychological characteristics and saving behavior.…”

Social Capital Theory, Social Exchange Theory, Social Cognitive Theory, Financial Literacy, and the Role of Knowledge Sharing as a Moderator in Enhancing Financial Well-Being: From Bibliometric Analysis to a Conceptual Framework Model

“…Future objectives can include retirement or clearing bills the subsequent month (Lown, 2011). In household finance, self-efficacy connects with optimistic financial behaviors and results (Asebedo and Seay, 2018;Farrell et al, 2016). According to Farrell et al (2016), the connection of financial self-efficacy on women's FWB after applying an econometric model elucidates its work toward the individual's "financial behavior."…”

Financial Literacy as More than Knowledge: The Development of a Formative Scale through the Lens of Bloom's Domains of Knowledge

“…In reading and writing literacy, self‐efficacy involves a willingness to try that supports gains in literacy (Schunk ). In the realm of household finance, self‐efficacy is associated with positive financial behaviors and outcomes (Asebedo and Seay ; Chatterjee, Finke, and Harness ; Farrell, Fry, and Risse ). Higher levels of self‐efficacy correlate with financial well‐being (CFPB ), the setting of more challenging goals (Bandura ), and the facilitation of financial help‐seeking (Lim et al ).…”