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The ant and the grasshopper revisited: The present psychological benefits of saving and future oriented financial behaviors

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  • Shim, Soyeon
  • Serido, Joyce
  • Tang, Chuanyi

Abstract

This study examines the impact of saving and future-oriented financial behaviors on young adults’ well-being. Using two-timed longitudinal data (N=748) collected both prior to and during the economic crisis, we tested and confirmed a psychological process model (i.e., financial attitude→behavioral intention→actual behavior→well-being), one that included parental norms, perceived behavioral control and financial planning horizon as antecedent factors. Our findings indicate that the more positive a young adult’s attitude toward financial behaviors, and the greater his/her perception of parental expectations, then the stronger will be this young adult’s intention to perform such behaviors. We found that behavioral intention at Time 1 contributed to actual financial behaviors at Time 2, which in turn was positively related to a young adult’s present sense of well-being. We also found that perceived behavioral control and financial planning horizon influenced both behavioral intention and actual behavior. Although perceived impact of the economic crisis moderated the link between past and present well-being, it did not affect the hierarchical flow of the model. We discuss the theoretical and practical implications of our study pertaining to consumer financial education.

Suggested Citation

  • Shim, Soyeon & Serido, Joyce & Tang, Chuanyi, 2012. "The ant and the grasshopper revisited: The present psychological benefits of saving and future oriented financial behaviors," Journal of Economic Psychology, Elsevier, vol. 33(1), pages 155-165.
  • Handle: RePEc:eee:joepsy:v:33:y:2012:i:1:p:155-165 DOI: 10.1016/j.joep.2011.08.005
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Guven, Cahit, 2012. "Reversing the question: Does happiness affect consumption and savings behavior?," Journal of Economic Psychology, Elsevier, pages 701-717.
    2. Yulei Rao & Lixing Mei & Rui Zhu, 2016. "Happiness and Stock-Market Participation: Empirical Evidence from China," Journal of Happiness Studies, Springer, vol. 17(1), pages 271-293, February.
    3. Sheu, Jiuh-Biing, 2016. "Supplier hoarding, government intervention, and timing for post-disaster crop supply chain recovery," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 134-160.
    4. Bucciol, Alessandro & Veronesi, Marcella, 2014. "Teaching children to save: What is the best strategy for lifetime savings?," Journal of Economic Psychology, Elsevier, pages 1-17.

    More about this item

    Keywords

    Saving attitude and behavior; Well-being; Theory of Planned Behavior; Young adults;

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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