Household savings through the prism of behavioral characteristics
DOI:
https://doi.org/10.22394/1993-7601-2024-75-98-116Keywords:
сбережения, домохозяйство, панельные данные, логит модель, двумерная пробит модель, поведенческие характеристики, финансовое поведениеAbstract
In the article, we use data of the household financial behavior longitudinal survey “All‐Russian House‐ hold Survey on Consumer Finance” and confirm the hypothesis that household saving behavior significantly depends on psychological and behavioral characteristics of the household head (while controlling for variables of income, type of settlement, education and demographic type of households). We show that higher financial literacy, satisfaction with relationships within the household, more responsible money management and better adaptation abilities, all other factors held equal, increase households’ chances of having savings. We also describe a typical household with a high probability of saving (assuming that the head of the household is financially literate): this is a high‐income household, its head has a higher or postgraduate education, and is highly responsible for money management. The presented econometric models and results are comprehensively assessed on the microdata for Russia for the first time.Downloads
References
Бурдяк А. Я. (2014). Денежные сбережения домашних хозяйств на разных этапах жизненного цикла. Финансовый журнал, 1, 129–140.
Кадочникова Е. И. (2021). Анализ тенденций и детерминант кредитного и сберегательного поведения домохозяйств в российских регионах. Russian Journal of Economics and Law, 15 (4), 661–675. DOI: 10.21202/2782-2923.2021.4.661-675.
Малкина М. Ю., Храмова И. Ю. (2017). Факторы сбережений населения: страновой и региональный анализ. Региональная экономика: теория и практика, 15 (10), 1844–1867. DOI: 10.24891/re.15.10.1844.
Потребительское поведение через призму доверия и ответственности: Исследование Левада-Центра по заказу ЦМИ Сбербанка. (2013). Москва: Центр макроэкономических исследований Сбербанка. https://www.sberbank.com/common/img/uploaded/files/pdf/press_center/2013/levada_potreblenie_doverie_i_otvetstvennost_.pdf.
Шашнов С. А. (2003). Сбережения домашних хозяйств и проблемы их статистического изучения на микроуровне. Вопросы статистики, 1, 13–25.
Шевченко Д. А., Давыденко А. В. (2013). Финансовая грамотность населения как фактор сберегательного поведения домашних хозяйств. Terra economicus, 11 (2–4), 139–144.
Aportela F. (1999). Effects of financial access on savings by low-income people. http://users.nber.org/~rdehejia/!@$devo/Lecture%2006%20Microcredit/supplemental/Aportela.pdf.
Beugelsdijk S., De Groot H. L. F., Van Schaik A. B. T. M. (2004). Trust and economic growth: A robustness analysis. Oxford Economic Papers, 56 (1), 118–134.
Boto-García D., Bucciol A., Manfrè M. (2022). The role of financial socialization and self-control on saving habits. Journal of Behavioral and Experimental Economics, 100, 101903. DOI: 10.1016/j.socec.2022.101903.
Broadway B., Haisken-DeNew J. P. (2019). Keep calm and consume? Subjective uncertainty and precautionary savings. Journal of Economics and Finance, 43 (3), 481–505. DOI: 10.1007/s12197-018-9451-0.
Cameron A. C., Trivedi P. K. (2022). Microeconometrics using Stata. 2nd ed. Texas: Stata Press.
Dardanoni V. (1991). Precautionary savings under income uncertainty: A cross-sectional analysis. Applied Economics, 23 (1), 153–160. DOI: 10.1080/00036849108841059.
Davis E. P., Schumm W. R. (1987). Savings behavior and satisfaction with savings: A comparison of low- and high-income groups. Home Economics Research Journal, 15 (4), 247–256.
Fernandes D., Lynch Jr. J. G., Netemeyer R. G. (2014). Financial literacy, financial education, and downstream financial behaviors. Management Science, 60 (8), 1861–1883. DOI: 10.1287/mnsc.2013.1849.
Fukuyama F. (1995). Trust: The social virtues and the creation of prosperity. New York: The Free Press.
Gerhard P., Gladstone J., Hoffmann A. (2018). Psychological characteristics and household savings behavior: The importance of accounting for latent heterogeneity. Journal of Economic Behavior and Organization, 148 (4), 66–82. DOI: 10.1016/j.jebo.2018.02.013.
Gilenko E., Chernova A. (2021). Saving behavior and financial literacy of Russian high school students: An application of a copula-based bivariate probit-regression approach. Children and Youth Services Review, 127, 106122. DOI: 10.1016/j.childyouth.2021.106122.
Greene W. H. (2018). Econometric analysis. 8th ed. New York: Pearson.
Gropp R., McShane W. (2021). Why are households saving so much during the corona recession? IWH Policy Notes, 1. http://hdl.handle.net/10419/242988.
Gudmunson C. G., Danes S. M. (2011). Family financial socialization: Theory and critical review. Journal of Family and Economic Issues, 32 (4), 644–667. DOI: 10.1007/s10834-011-9275-y.
Heckman S. J., Sherman Ð. D. (2015). Individual and institutional factors related to low-income household saving behavior. Journal of Financial Counseling and Planning, 26 (2), 187–199. DOI: 10.1891/1052-3073.26.2.187.
Hershey D. A. (2004). Psychological influences on the retirement investor. CSA Journal: Certified Senior Advisor, 22, 31–39.
Hsiao C. (2014). Analysis of panel data. 3rd ed. Cambridge University Press.
Jacobs-Lawson J. M., Hershey D. A. (2005). Influence of future time perspective, financial knowledge, and financial risk tolerance on retirement saving behaviors. Financial Services Review, 14 (4), 331–344.
Jappelli T., Padula M. (2013). Investment in financial literacy and saving decisions. Journal of Banking and Finance, 37 (8), 2779–2792. DOI: 10.1016/j.jbankfin.2013.03.019.
Kaiser T., Lusardi A., Menkhoff L., Urban C. (2022). Financial education affects financial knowledge and downstream behaviors. Journal of Financial Economics, 145 (2), 255–272. DOI: 10.1016/j.jfineco.2021.09.022.
Kim K. T., Yuh Y. (2018). Financial knowledge and household saving: Evidence from the survey of consumer finances. Family and Consumer Sciences Research Journal, 47 (1), 5–24. DOI: 10.1111/fcsr.12270.
Lown J. M., Kim J., Gutter M. S., Hunt A. T. (2015). Self-efficacy and savings among middle and low income households. Journal of Family and Economic Issues, 36 (4), 491–502. DOI: 10.1007/s10834-014-9419-y.
Maison D. (2019). The psychology of financial consumer behavior. Cham, Switzerland: Springer Nature.
Park H. M. (2010). Regression models for binary dependent variables using Stata, SAS, R, LIMDEP, and SPSS. Technical report. Indiana University. https://scholarworks.iu.edu/dspace/handle/2022/19740.
Rey-Ares L., Fernández-López S., Castro-González S., Rodeiro-Pazos D. (2021). Does self-control constitute a driver of millennials’ financial behaviors and attitudes? Journal of Behavioral and Experimental Economics, 93, 101702. DOI: 10.1016/j.socec.2021.101702.
Solmon L. C. (1975). The relation between schooling and savings behavior: An example of the indirect effects of education. In: F. Thomas Juster (ed.), Education, Income, and Human Behavior, 253–294. NBER.
Strömbäck C., Lind T., Skagerlund K., Västfjäll D., Tinghög G. (2017). Does self-control predict financial behavior and financial well-being? Journal of Behavioral and Experimental Finance, 14, 30–38. DOI: 10.1016/j.jbef.2017.04.002.
Voinea L., Loungani P. (2022). Excess savings are recession-specific and compensatory: Evidence from the US. Intereconomics, 57 (4), 233–237. DOI: 10.1007/s10272-022-1059-0.
Burdyak A. Ya. (2014). Households’ monetary savings over the life cycle. Financial Journal, 1, 129–140 (in Russian).
Kadochnikova E. I. (2021). Analysis of the trends and determinants of credit and saving behavior of households in the Russian regions. Russian Journal of Economics and Law, 15 (4), 661–675 (in Russian). DOI: 10.21202/2782‑2923.2021.4.661‑675.
Malkina M. Yu., Khramova I. Yu. (2017). Population savings factors: Acountry and regional analysis.
Regional Economics: Theory and Practice, 15(10), 1844–1867 (in Russian). DOI: 10.24891/re.15.10.1844.
Consumer behavior through the prism of trust and responsibility: A study by the Levada Center commissioned by Sberbank. (2013). Moscow: Macroeconomic Research Center of Sberbank. February (in Russian). https://www.sberbank.com/common/img/uploaded/files/pdf/press_center/2013/levada_potreblenie_doverie_i_otvetstvennost_.pdf.
Shashnov S. A. (2003). Household savings and problems of their statistical study at the micro level.
Voprosy statistiki, 1, 13–25 (in Russian).
Shevchenko D. A., Davydenko A. V. (2013). Financial literacy as a factor in the saving behavior of households. Terra economicus, 11 (4–2), 139–144 (in Russian).
Aportela F. (1999). Effects of financial access on savings by low-income people. http://users.nber.org/~rdehejia/!@$devo/Lecture%2006%20Microcredit/supplemental/Aportela.pdf.
Beugelsdijk S., De Groot H. L. F., Van Schaik A. B. T. M. (2004). Trust and economic growth: A robustness analysis. Oxford Economic Papers, 56 (1), 118–134.
Boto-García D., Bucciol A., Manfrè M. (2022). The role of financial socialization and self-control on saving habits. Journal of Behavioral and Experimental Economics, 100, 101903. DOI: 10.1016/j.socec.2022.101903.
Broadway B., Haisken-DeNew J. P. (2019). Keep calm and consume? Subjective uncertainty and precautionary savings. Journal of Economics and Finance, 43 (3), 481–505. DOI: 10.1007/s12197-018-9451-0.
Cameron A. C., Trivedi P. K. (2022). Microeconometrics using Stata. 2nd ed. Texas: Stata Press.
Dardanoni V. (1991). Precautionary savings under income uncertainty: A cross-sectional analysis. Applied Economics, 23 (1), 153–160. DOI: 10.1080/00036849108841059.
Davis E. P., Schumm W. R. (1987). Savings behavior and satisfaction with savings: A comparison of low- and high-income groups. Home Economics Research Journal, 15 (4), 247–256.
Fernandes D., Lynch Jr. J. G., Netemeyer R. G. (2014). Financial literacy, financial education, and downstream financial behaviors. Management Science, 60 (8), 1861–1883. DOI: 10.1287/mnsc.2013.1849.
Fukuyama F. (1995). Trust: The social virtues and the creation of prosperity. New York: The Free Press.
Gerhard P., Gladstone J., Hoffmann A. (2018). Psychological characteristics and household savings behavior: The importance of accounting for latent heterogeneity. Journal of Economic Behavior and Organization, 148 (4), 66–82. DOI: 10.1016/j.jebo.2018.02.013.
Gilenko E., Chernova A. (2021). Saving behavior and financial literacy of Russian high school students: An application of a copula-based bivariate probit-regression approach. Children and Youth Services Review, 127, 106122. DOI: 10.1016/j.childyouth.2021.106122.
Greene W. H. (2018). Econometric analysis. 8th ed. New York: Pearson.
Gropp R., McShane W. (2021). Why are households saving so much during the corona recession? IWH Policy Notes, 1. http://hdl.handle.net/10419/242988.
Gudmunson C. G., Danes S. M. (2011). Family financial socialization: Theory and critical review. Journal of Family and Economic Issues, 32 (4), 644–667. DOI: 10.1007/s10834-011-9275-y.
Heckman S. J., Sherman Ð. D. (2015). Individual and institutional factors related to low-income household saving behavior. Journal of Financial Counseling and Planning, 26 (2), 187–199. DOI: 10.1891/1052-3073.26.2.187.
Hershey D. A. (2004). Psychological influences on the retirement investor. CSA Journal: Certified Senior Advisor, 22, 31–39.
Hsiao C. (2014). Analysis of panel data. 3rd ed. Cambridge University Press.
Jacobs-Lawson J. M., Hershey D. A. (2005). Influence of future time perspective, financial knowledge, and financial risk tolerance on retirement saving behaviors. Financial Services Review, 14 (4), 331–344.
Jappelli T., Padula M. (2013). Investment in financial literacy and saving decisions. Journal of Banking and Finance, 37 (8), 2779–2792. DOI: 10.1016/j.jbankfin.2013.03.019.
Kaiser T., Lusardi A., Menkhoff L., Urban C. (2022). Financial education affects financial knowledge and downstream behaviors. Journal of Financial Economics, 145 (2), 255–272. DOI: 10.1016/j.jfineco.2021.09.022.
Kim K. T., Yuh Y. (2018). Financial knowledge and household saving: Evidence from the survey of consumer finances. Family and Consumer Sciences Research Journal, 47 (1), 5–24. DOI: 10.1111/fcsr.12270.
Lown J. M., Kim J., Gutter M. S., Hunt A. T. (2015). Self-efficacy and savings among middle and low income households. Journal of Family and Economic Issues, 36 (4), 491–502. DOI: 10.1007/s10834-014-9419-y.
Maison D. (2019). The psychology of financial consumer behavior. Cham, Switzerland: Springer Nature.
Park H. M. (2010). Regression models for binary dependent variables using Stata, SAS, R, LIMDEP, and SPSS. Technical report. Indiana University. https://scholarworks.iu.edu/dspace/handle/2022/19740.
Rey-Ares L., Fernández-López S., Castro-González S., Rodeiro-Pazos D. (2021). Does self-control constitute a driver of millennials’ financial behaviors and attitudes? Journal of Behavioral and Experimental Economics, 93, 101702. DOI: 10.1016/j.socec.2021.101702.
Solmon L. C. (1975). The relation between schooling and savings behavior: An example of the indirect effects of education. In: F. Thomas Juster (ed.), Education, Income, and Human Behavior, 253–294. NBER.
Strömbäck C., Lind T., Skagerlund K., Västfjäll D., Tinghög G. (2017). Does self-control predict financial behavior and financial well-being? Journal of Behavioral and Experimental Finance, 14, 30–38. DOI: 10.1016/j.jbef.2017.04.002.
Voinea L., Loungani P. (2022). Excess savings are recession-specific and compensatory: Evidence from the US. Intereconomics, 57 (4), 233–237. DOI: 10.1007/s10272-022-1059-0.
