How Do Distrust and Anxiety Affect Saving Behavior?

Abstract

Using scales developed from a modified Yamauchi and Templer's Money Attitudes Scale (1982), this research examined how distrust and anxiety, demographic factors, and financial management behavior were associated with being a regular saver among low‐ and moderate‐income households. Data were collected online. The national sample consisted of 749 respondents. The results of the Ordinary Least Squares regression on the financial management behavior score showed that those with higher levels of distrust and lower levels of anxiety tended to engage in more recommended financial management behaviors. The results of the logistic regression on saving regularly showed that anxiety and financial management behaviors were associated with savings behavior. The results of hierarchical logistic regressions showed that those who practiced more recommended financial management behaviors and those who had lower levels of anxiety were more likely to save regularly. Also, those with more income and more net worth were more likely to save regularly. Male respondents were more likely to save regularly than female respondents. As age increased, respondents were less likely to save regularly.

Financial Knowledge and Household Saving: Evidence from the Survey of Consumer Finances

“…Age is among the variables associated most closely with saving behavior. Younger households were more likely to save than were older households when income and other factors were controlled (Hayhoe et al., ). This result is consistent with the life cycle hypothesis that assumes that households attempt to smooth their consumption over a lifetime and to accumulate wealth for retirement.…”

Financial Literacy: The Relationship to Saving Behavior in Low‐ to Moderate‐income Households

“…Hayhoe et al. () showed that anxiety about money was related to saving behavior in low‐ to moderate‐income households.…”

The Impact of Money Attitudes on the Relationship Between Income and Financial Satisfaction

“…In the area of economic psychology and especially in recent years, a number of studies examined people's attitudes or beliefs about money. This interest is probably due to growing awareness among researchers and managers that individual differences in attitudes toward money might be important, for example, in designing motivational systems for work, as well as in understanding debt, saving and consumption behavior (Hayhoe et al, 2012;Lim, Teo, & Loo, 2003). Research has also revealed that differences in attitudes toward money influence the perception of one's income (Gasiorowska, 2014b;Tang, et al, 2004Tang, et al, , 2005Tang, et al, , 2006Tang, et al, , 2013Wilhelm et al, 1993), moderate the effects of mortality salience on the perception of money (Zaleskiewicz et al, 2013) and the effects of money priming on prosocial preferences (Gasiorowska & Helka, 2012) or self-esteem (Gasiorowska, 2014a).…”