Do Self-Control Measures Affect Saving Behavior?

Kim, G. J. & Hanna, S. D. (2017). Do self-control measures affect saving behavior? Journal of Personal Finance, Forthcoming

20 Pages Posted: 17 Jul 2017

See all articles by Gui Jeong Kim

Gui Jeong Kim

Ohio State University (OSU) - College of Education and Human Ecology

Sherman D. Hanna

Ohio State University (OSU)

Date Written: July 10, 2017

Abstract

We examine the effects of self-control mechanisms on saving behavior using the 2013 Survey of Consumer Finances (SCF), following the assumptions of research that analyzed the 1998 SCF. Self-control mechanisms include saving goals, foreseeable expenses, and saving rules. We find a positive effect of having one or more saving rules on the likelihood of saving, and weak effects of having retirement as a saving goal and of having children/family as a saving goal on saving However, it is not clear that the measures of self-control reported in previous research really provide useful ways to increase the likelihood of saving. We discuss implications for financial planning advice.

Keywords: behavioral life cycle hypothesis, saving behavior, saving goals, saving rules, self-control, Survey of Consumer Finances

JEL Classification: D03, D14, D91

Suggested Citation

Kim, Gui Jeong and Hanna, Sherman D., Do Self-Control Measures Affect Saving Behavior? (July 10, 2017). Kim, G. J. & Hanna, S. D. (2017). Do self-control measures affect saving behavior? Journal of Personal Finance, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3000139

Gui Jeong Kim

Ohio State University (OSU) - College of Education and Human Ecology ( email )

127 Arps Hall
1945 North High Street
Columbus, OH 43210-117
United States

Sherman D. Hanna (Contact Author)

Ohio State University (OSU) ( email )

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

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