Teaching Children to Save: What is the Best Strategy for Lifetime Savings?

38 Pages Posted: 19 Nov 2013 Last revised: 2 May 2015

See all articles by Alessandro Bucciol

Alessandro Bucciol

University of Verona - Department of Economics; Netspar

Marcella Veronesi

University of Verona - Department of Economics; Center for Development and Cooperation (NADEL)

Date Written: October 1, 2013

Abstract

We study the effect of alternative parental teaching strategies on the propensity to save and the amount saved during adulthood. Using a panel dataset from the Dutch DNB Household Survey we find that parental teaching to save increases the likelihood that an adult will save by 16%, and the saving amount by about 30%. The best strategy involves a combination of different methods (giving pocket money, controlling money usage, and giving advice about saving and budgeting). The effect of parental teaching is persistent with age, but decays at elder age for the propensity to save.

Keywords: saving, teaching to save, children, pocket money

JEL Classification: J13, D12

Suggested Citation

Bucciol, Alessandro and Veronesi, Marcella, Teaching Children to Save: What is the Best Strategy for Lifetime Savings? (October 1, 2013). Journal of Economic Psychology, Forthcoming, Netspar Discussion Paper No. 10/2013-051, Available at SSRN: https://ssrn.com/abstract=2356179 or http://dx.doi.org/10.2139/ssrn.2356179

Alessandro Bucciol (Contact Author)

University of Verona - Department of Economics ( email )

Via Cantarane 24
Verona, 37129
Italy
+39 045.802.8278 (Phone)
+39 045.802.8529 (Fax)

HOME PAGE: http://www.sites.google.com/site/abucciol/

Netspar ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Marcella Veronesi

University of Verona - Department of Economics ( email )

Via Cantarane 24
Verona, 37129
Italy

Center for Development and Cooperation (NADEL) ( email )

Zürichbergstrasse 18
8092 Zurich, CH-1015
Switzerland

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