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Self-efficacy and Savings Among Middle and Low Income Households

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  • Jean Lown
  • Jinhee Kim
  • Michael Gutter
  • Anne-Therese Hunt

Abstract

Based on Social Cognitive Theory, this exploratory study examined the relationship between self-efficacy and saving among a sample of middle and low income households. Logistic regression was used to test the hypothesis that higher levels of self-efficacy are associated with greater likelihood of saving when controlling for age and income levels. The results show that higher self-efficacy, older age, and middle incomes are associated with a higher likelihood of savings. When controlling for age and income, respondents with low self-efficacy were only 60% as likely to save as those with high self-efficacy scores. The results confirm that saving behavior is associated with general self-efficacy. Enhancing self-efficacy for middle and low income individuals may encourage saving. Implications of this research suggest a need for additional research to further explore this relationship and how it might be used to enhance outreach aimed at improving savings behavior. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Jean Lown & Jinhee Kim & Michael Gutter & Anne-Therese Hunt, 2015. "Self-efficacy and Savings Among Middle and Low Income Households," Journal of Family and Economic Issues, Springer, vol. 36(4), pages 491-502, December.
    • Handle: RePEc:kap:jfamec:v:36:y:2015:i:4:p:491-502
    DOI: 10.1007/s10834-014-9419-y
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    5. Dugan, Jerome & Booshehri, Layla G. & Phojanakong, Pam & Patel, Falguni & Brown, Emily & Bloom, Sandra & Chilton, Mariana, 2020. "Effects of a trauma-informed curriculum on depression, self-efficacy, economic security, and substance use among TANF participants: Evidence from the Building Health and Wealth Network Phase II," Social Science & Medicine, Elsevier, vol. 258(C).
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