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Teaching Children to Save and Lifetime Savings: What Is the Best Strategy?

Listed author(s):
  • Alessandro Bucciol

    ()

    (Department of Economics (University of Verona))

  • Marcella Veronesi

    ()

    (Department of Economics (University of Verona))

We study the effect of alternative parental teaching strategies on the propensity to save and the amount saved during adulthood. Using a panel dataset from the Dutch DNB Household Survey we find that parental teaching to save increases the likelihood that an adult will save by 16%, and the saving amount by about 30%. The best strategy involves a combination of different methods (giving pocket money, controlling money usage, and giving advice about saving and budgeting). The effect of parental teaching is persistent with age, but decays at elder age for the propensity to save.

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File URL: http://dse.univr.it/home/workingpapers/wp2013n10.pdf
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Paper provided by University of Verona, Department of Economics in its series Working Papers with number 10/2013.

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Length: 37
Date of creation: May 2013
Handle: RePEc:ver:wpaper:10/2013
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