Savings Goals and Saving Behavior from a Perspective of Maslow's Hierarchy of Needs

20 Pages Posted: 6 Apr 2015 Last revised: 1 Jul 2017

See all articles by Jae Min Lee

Jae Min Lee

Minnesota State University, Mankato

Sherman D. Hanna

Ohio State University (OSU)

Date Written: April 4, 2015

Abstract

The purpose of this study was to examine associations between saving goals and saving behavior from a perspective of Maslow’s Hierarchy. Using 1998-2007 Surveys of Consumer Finance data, we analyzed responses given to an open-ended saving reason question, and categorized responses into six saving goals. The retirement/security goal was the most frequently mentioned, and the self-actualization goal was the least frequently mentioned. We tested two models to ascertain whether the order of response differed in the likelihood of saving, measured as whether households spent less than income. Model 1 tested the effects of whether particular goals were given as the first response to the open-ended question, and Model 2 tested the effects of whether particular goals were given as any response. In both analyses, self-actualization and retirement/security had the strongest associations with saving behavior.

Keywords: Goal setting; Maslow hierarchy; Saving goal; Saving motive; Survey of Consumer Finances

JEL Classification: D12, D13, D14

Suggested Citation

Lee, Jae Min and Hanna, Sherman D., Savings Goals and Saving Behavior from a Perspective of Maslow's Hierarchy of Needs (April 4, 2015). Journal of Financial Counseling and Planning, Vol. 26, No. 2, 2015. Available at SSRN: https://ssrn.com/abstract=2589964

Jae Min Lee (Contact Author)

Minnesota State University, Mankato ( email )

120 Wiecking Center
Mankato, MN MN 43210
United States

Sherman D. Hanna

Ohio State University (OSU) ( email )

1787 Neil Avenue
Campbell 265D
Columbus, OH 43210
United States
614-292-4584 (Phone)

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