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

Soyeon Shim, Joyce Serido, Chuanyi Tang

Research output: Contribution to journalArticlepeer-review

41 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)155-165
Number of pages11
JournalJournal of Economic Psychology
Volume33
Issue number1
DOIs
StatePublished - Feb 2012

Bibliographical note

Funding Information:
This study has been made possible through a research grant awarded by the National Endowment for Financial Education (NEFE). The authors would like to thank NEFE for its dedication to research, education and outreach in promoting financial literacy.

Keywords

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

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