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Control thyself: Self-control failure and household wealth

Author

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  • Biljanovska, Nina
  • Palligkinis, Spyros

Abstract

We examine the relationship between self-control and household wealth. Building on literature in psychology, we take a more comprehensive approach to the concept of self-control and posit that it consists of three ingredients: planning, monitoring, and commitment to pre-set goals. We build a measure which combines those three components and can be computed using a standard representative survey. We find that self-control failure is strongly associated with different household net wealth measures and with self-assessed financial distress.

Suggested Citation

  • Biljanovska, Nina & Palligkinis, Spyros, 2018. "Control thyself: Self-control failure and household wealth," Journal of Banking & Finance, Elsevier, vol. 92(C), pages 280-294.
    • Handle: RePEc:eee:jbfina:v:92:y:2018:i:c:p:280-294
    DOI: 10.1016/j.jbankfin.2016.10.010
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    Cited by:

    1. Oshra Costa-Agmon & Hanna Gendel-Guterman, 2025. "Life in Perpetual Overdraft: Are Poor Households Doomed to Always be in Debt?," Journal of Family and Economic Issues, Springer, vol. 46(1), pages 319-329, March.
    2. Ying Liu & Haoran Zhao & Jieguang Sun & Yahui Tang, 2022. "Digital Inclusive Finance and Family Wealth: Evidence from LightGBM Approach," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    3. Rey-Ares, Lucía & Fernández-López, Sara & Castro-González, Sandra & Rodeiro-Pazos, David, 2021. "Does self-control constitute a driver of millennials’ financial behaviors and attitudes?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 93(C).
    4. Grohmann, Antonia & Hamdan, Jana S., 2020. "The Effect of Self-Control on Borrowing: Experimental Evidence," Rationality and Competition Discussion Paper Series 264, CRC TRR 190 Rationality and Competition.
    5. Jing, Peng & Zhao, Shuchen & Wang, Minglu, 2025. "From savings to investments: How retirement consumption expectations shape household risky financial asset allocation," Pacific-Basin Finance Journal, Elsevier, vol. 93(C).
    6. Wang, Jiaxin & Liu, Jiemei & Wang, Jiawei & Huang, Xiang & Liu, Yu, 2023. "The puzzle of household wealth preservation and corporate innovation," International Review of Financial Analysis, Elsevier, vol. 90(C).
    7. Chen, Hung-Ling & Hsu, Yuan-Lin & Lu, Chi-Yang, 2024. "Revisiting financial fragility during the COVID-19 pandemic: Evidence from Taiwan," Journal of Behavioral and Experimental Finance, Elsevier, vol. 44(C).
    8. Ali Saleh Alshebami & Theyazn H. H. Aldhyani, 2022. "The Interplay of Social Influence, Financial Literacy, and Saving Behaviour among Saudi Youth and the Moderating Effect of Self-Control," Sustainability, MDPI, vol. 14(14), pages 1-18, July.
    9. Antonia Grohmann & Jana Hamdan, 2021. "The Effect of Self-Control and Financial Literacy on Impulse Borrowing: Experimental Evidence," Discussion Papers of DIW Berlin 1950, DIW Berlin, German Institute for Economic Research.
    10. Tahira Iram & Ahmad Raza Bilal & Shahid Latif, 2024. "Is Awareness That Powerful? Women’s Financial Literacy Support to Prospects Behaviour in Prudent Decision-making," Global Business Review, International Management Institute, vol. 25(5), pages 1356-1381, October.
    11. Youngjoo Choung & Tae-Young Pak, 2023. "More than just a bad day? Traumatic life events and self-control in old age," PLOS ONE, Public Library of Science, vol. 18(2), pages 1-13, February.
    12. Mirpourian, Mehrdad, 2020. "Building a Habit: How Initial Saving Activity Predicts Long-term Account Engagement," MPRA Paper 103061, University Library of Munich, Germany.
    13. Ivan Skliarov & Łukasz Goczek, 2024. "What Makes a Household Wealthy? Is it Reckless Risk-Taking or Careful Planning?," LWS Working papers 42, LIS Cross-National Data Center in Luxembourg.
    14. Ivan Gumilar Sambas Putra, 2025. "Unpacking the influence of parental and peer support on youth financial literacy and saving behavior in Indonesia," Jurnal Siasat Bisnis, Management Development Centre (MDC) Department of Management, Faculty of Business and Economics Universitas Islam Indonesia, vol. 29(2), pages 194-210.
    15. Abu Elnasr E. Sobaih & Ibrahim A. Elshaer, 2023. "Risk-Taking, Financial Knowledge, and Risky Investment Intention: Expanding Theory of Planned Behavior Using a Moderating-Mediating Model," Mathematics, MDPI, vol. 11(2), pages 1-17, January.
    16. Strömbäck, Camilla & Skagerlund, Kenny & Västfjäll, Daniel & Tinghög, Gustav, 2020. "Subjective self-control but not objective measures of executive functions predicts financial behavior and well-being," Journal of Behavioral and Experimental Finance, Elsevier, vol. 27(C).
    17. Lei, Lei & Lu, Weijie & Niu, Geng & Zhou, Yang, 2024. "Religiosity and financial distress of the young," Journal of Banking & Finance, Elsevier, vol. 168(C).
    18. Firth, Chris & Stewart, Neil & Antoniou, Constantinos & Leake, David, 2023. "The effects of personality and IQ on portfolio outcomes," Finance Research Letters, Elsevier, vol. 51(C).

    More about this item

    Keywords

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    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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