Personality and Saving Behavior Among Older Adults

TitlePersonality and Saving Behavior Among Older Adults
Publication TypeJournal Article
Year of Publication2019
AuthorsAsebedo, SD, Wilmarth, MJ, Seay, MC, Archuleta, K, Brase, GL, MacDonald, M
JournalJournal of Consumer Affairs
Date Published09/2019
KeywordsFinances, Personality, Retirement Planning and Satisfaction, Saving

This study investigates how psychological characteristics influence saving behavior within a sample of 1,380 U.S. preretirees aged 50–70 from the Health and Retirement Study (HRS). Using the 3M Model of Motivation and Personality as a theoretical basis, structural equation model results revealed that financial self‐efficacy (FSE) directly explains saving behavior and is central to understanding the link between other psychological characteristics and the saving behavior of older adults. Through higher FSE, increased positive affect and reduced negative affect indirectly supported saving behavior. Moreover, the results revealed personality traits indirectly explained saving behavior. Conscientiousness and extroversion indirectly supported saving behavior; whereas openness to experience and neuroticism indirectly undermined saving behavior. This study connects broad personality traits with saving behavior, which provides information about how older adults' psychological composition is related to their saving practices.

Short TitleJ Consum Aff
Citation Key9728