SAES-422 Multistate Research Activity Accomplishments Report

Sections

Basic Information
Additional Info

Status: Approved

Basic Information

Project No. and Title: NC1172 : The Complex Nature of Saving: Psychological and Economic Factors
Period Covered: 10/01/2012 to 09/01/2013
Date of Report: 11/05/2013
Annual Meeting Dates: 07/30/2013 to 08/01/2013

Bowen, Cathy (cbowen@psu.edu) - The Pennsylvania State University; Cho, Soo Hyun (SooHyun.Cho@sdstate.edu) - South Dakota State University; Griesdorn, Timothy (tgriesdo@iastate.edu) - Iowa State University; Gutter, Michael (msgutter@ufl.edu) - University of Florida; Kim, Jinhee (jinkim@umd.edu) - University of Maryland; Kiss, Elizabeth (dekiss4@ksu.edu) - Kansas State University; Lown, Jean (jean.lown@usu.edu) - Utah State University; Mauldin, Teresa (tmauldin@fcs.uga.edu) - University of Georgia; Minton, J. Ernest (eminton@k-state.edu) - Kansas State University; Worthy, Sheri (sworthy@uga.edu) - University of Georgia

Brief Summary of Minutes of Annual Meeting

Legacy attachment file:

[Minutes]

Accomplishments

The new project proposal was approved and will be known as NC 2172, Behavioral economics and financial decision making. Each one in the group reported updates with their papers: The Risk Tolerance paper has been accepted for Journal of Financial Counseling and Planning, the Self Efficacy paper was under the second round review with the Journal of Family and Economic Issues, Michael Gutter is working on the Housing paper with a graduate student, and Teresa has a couple of graduate students working on a various topic. The group explored sources to publish our research with the new data, including International Journal of Consumer Studies, Journal of Human Sciences and Extension, and Journal of Economic Psychology. Membership list with the NC 2172 was reviewed and the group decided to reach out some new members with the potential interest in our new project. Michael Gutter was elected as the Vice Chair, who will become the Chair in 2015. The group divided into teams and worked on the impact report. Also the plan of work for NC 2172 was discussed and decided that we would have data, literature review, and funding working groups. Also the first focus area for the research would be on the Student Loan. Dr. Dilip Soman from University of Toronto gave a presentation about Experimental Design via Adobe Connect. Tim gave an overview about the Families in Transition Dataset and it was suggested that we develop a paper using the data to the NCFR conference. The group discussed the management of dropbox for the new project.

Impacts

In a sample of low and moderate income households, financial management behaviors (making spending plans, having written goals, and monitoring spending) were positively related to saving regularly.
In a sample of low and moderate income households, those who used more sources of information were more likely than other similar households to have a savings account and also to have an investment account.
In a sample of low and moderate income households, adults financial management behavior was influenced if the adults discussed money with parents when they were a child and also if they had used financial planners as a source of information.
In a sample of low and moderate income households, if households had more perceived barriers (such as access to financial services), they were less likely to have a savings account.
In a sample of low and moderate income households, about one third held term life insurance or cash value life insurance; holding life insurance increased as household income increased and also if the household saved regularly.

Publications

Mauldin, T., Bowen, C. F., & Cheang, M. (2013). Barriers to savings among low- to moderate-income households that do not save regularly. Journal of Extension, 51(5).

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