Which Households Think They Save?

Abstract

We examine household saving in the context of a prescriptive model. Using Survey of Consumer Finances data sets in the 1995–2004 period, 57% of households reported spending less than income. Many effects in the multivariate analysis are consistent with a prescriptive model. We discuss other effects in terms of possible differences in the ability to plan or the accuracy of reporting by the respondent. Young households are more likely to report saving than older households. Black households are less likely to report saving than white households. Single female households are less likely to report saving than single male households.

Is Savings Behaviour Predictable by Consumer Sentiment?

“…4, August 2016 savings the optimists declared to have was higher, yet it was the pessimists who twice during the period of the research declared to have more savings. The obtained results confirm the observations made by J. Rha, C. Montalto and S. Hanna [12] as well as Y. Yuh and S. Hanna [13]. Optimists relatively more often have plans to save, and save more often than pessimists.…”

“…Optimistic households (economic optimism was examined) are more eager to save than pessimistic households [12], [13]. The same is true about non-economic optimistic bias -persons who think they will live longer than the statistical average are more likely to save [2].…”

Personality and Saving Behavior Among Older Adults

“…A variety of sociodemographic characteristics are associated with the propensity to save. Attanasio () found that saving increases with age and peaks around age 60; however, Yuh and Hanna () provided evidence that suggests younger households (< 30) were more likely to report spending less than income in the previous year. Gender also affects saving decisions, with men reporting they voluntarily saved a higher percentage of their annual income than women (Hershey et al ).…”

Financial Behavior and Attitudes of Asians Compared to Other Racial/Ethnic Groups in the United States

“…Likewise, Rha et al (2006) and Yuh and Hanna (2010) also found that Asians were not significantly different from Whites in the likelihood of spending less than income, and Fisher and Anong (2012) reported no significant difference for savings habits between Asians and Whites. Lee (2013), using the 2010 SCF, reported that households with Asian female respondents were more likely than those with White male respondents to be discouraged from applying for credit.…”