The Relationship between Self-Control Factors and Household Saving Behavior

Abstract

We examined the effect of self-control factors on saving behavior based on the behavioral life-cycle hypothesis, using the 2016 and 2019 Survey of Consumer Finances (SCF) datasets. A model which included self-control factors (behavioral life-cycle variables) had a more significant effect on saving behavior than a model that included only normative life-cycle variables. Among self-control factors, having at least one saving rule was positively associated with saving behavior, but saving goals were not significantly associated with saving behavior. Having a foreseeable major expense was negatively associated with saving behavior. The findings of this study can assist financial planners, counselors, and educators in developing and implementing strategies related to self-control factors to enhance saving behavior.

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

JEL Classification: G51,D14