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Future Orientation and Saving for Medium‐Term Expenses
Author(s) -
Ag Sophia T.,
Fisher Patti J.
Publication year - 2013
Publication title -
family and consumer sciences research journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.372
H-Index - 31
eISSN - 1552-3934
pISSN - 1077-727X
DOI - 10.1111/fcsr.12026
Subject(s) - odds , multinomial logistic regression , logistic regression , term (time) , control (management) , actuarial science , medium term , economics , business , demographic economics , marketing , medicine , computer science , management , machine learning , macroeconomics , physics , quantum mechanics
This study examined the gap between planning and doing among 3,666 future orienters in the 2010 Survey of Consumer Finances. Future orienters were those who expected at least one foreseeable major expense in 5–10 years. A theory of planned behavior cumulative logistic model testing saving implementation as a strategy was rejected. Then a multinomial logistic regression was estimated. The odds to be currently saving or to have already saved were higher for those with longer planning horizons, moderate risk tolerance, those who were married, White people, blue‐collar workers, and those with self‐discipline in spending and saving habits. A favorable attitude toward installment credit increased the likelihood of not saving. The number rather than the type of expense was more influential in saving although health, family, and general purchases decreased the odds of saving. Attitudes, norms, and behavior control helped explain a lack of saving among future orienters.