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NC1172: The Complex Nature of Saving: Psychological and Economic Factors

Annual/Termination Reports (SAES-422): [09/30/2010] [10/07/2011] [09/18/2012]

Date of Annual Report: 09/30/2010

Report Information:
  • Annual Meeting Dates: 08/11/10 to 08/12/10
  • Period the Report Covers: 10/2008 to 09/2010

    • Participants:
    Brief Summary of Minutes of Annual Meeting:
    REVIEWERS PLEASE NOTE--THIS IS INDEED A REPORT SUMMARIZING TWO YEARS.

    This project formerly operated as NC1013. The project was renewed in 2008. No meeting was held in 2009 because of nation-wide budget tightening and travel restrictions by several universities.


    URL: Copy of minutes

    Accomplishments:
    Accomplishments:

    Outputs: Refined the electronic version of the instrument to be administered using Survey Money and survey panels.

    Milestones: Finalizing the survey instrument in the current year should now allow the nationwide survey to proceed.

    NOTE TO REVIEWERS--THERE IS A SIGNIFICANT AMOUNT OF MULTI-INSTITUTIONAL EFFORT ASSOCIATED WITH THE SURVEY INSTRUMENT ATTACHED IN THE "PUBLICATIONS" SECTION OF THE REPORT. THE FOLLOWING IS RELEVANT BACKGROUND INFORMATION.

    The previous version of the current multistate research committee, NC1013, tested out the first draft of the survey using audiences on our campuses that had access to e-mail; additional tweaking of survey was done. Michael Gutter, then at the University of Wisconsinnow at University of Florida, used those findings to further tweak the instrument and Northwestern Mutual Foundation provided some funding to help pay for the analysis etc.

    The instrument was further refined (significant content removed). Then, there were two instances of almost getting funding to conduct a national survey by H&R Block and The Financial Planning Association. The committee was advised to work on smaller efforts rather than trying to find one entity to fund a large project. So some team members have used a version of the survey to investigate smaller groups, mostly convenience groups. Also, efforts have been made to garner funding from a recent RFP that was issued by the Social Security Administration. That funding went to the University of Wisconsin and others ( The Financial Literacy Research Consortium (FLRC) consists of three research centers at the RAND Corporation, Boston College, and the University of Wisconsin. Established in September 2009 and supported by the Social Security Administration through five-year cooperative agreements, the Consortium is developing innovative materials and programs to help Americans at all stages of life plan for a secure retirement.

    Under NC1013, the survey was also tested with a mail-in group and with an online audience made available through Consumer Federation of America and their national America Saves campaign. The returns for both were disappointing and did not yield enough information to report on.

    Under the current scenario, one of the new NC1172 team members has successfully used Survey Panel International to collect data electronically. Team members are pooling funds from various sources to support data collection using this avenue and with the instrument as developed. Data collection should be completed before 2011 arrives.

    Impact Statements:
    1. Impacts from the research will not be realized until the survey data have been collected and analyzed.
    Last Modified: 06-Oct-2010

    Date of Annual Report: 10/07/2011

    Report Information:
  • Annual Meeting Dates: 08/03/11 to 08/04/11
  • Period the Report Covers: 10/2010 to 09/2011

    • Participants:
    Brief Summary of Minutes of Annual Meeting:
    1. Meeting called to order by Cathy F. Bowen, Chair. 2. Welcome to Sioux Falls by hosts Soohyun Cho and Elizabeth Gorham 3. The meeting outline was reviewed and Cathy Bowen gave an overview of NC1172 including current status of data collected in December 2010 by Survey Sampling International. An update was also provided of data collection in other countries (Korea, Singapore, Malaysia, Turkey, Mexico, Columbia, and Thailand) in the Fall 2011 by team members and collaborators (Korea, Singapore, Malaysia, Turkey, Mexico, Columbia, and Thailand). 4. New advisor Dr. J. Ernest Minton asked a few questions about the groups history and responded to questions about renewing projects. 5. Susan Shockey, NIFA/USDA representative joined the group by phone and shared updated regarding the reorganized NIFA. 6. Minutes of the July 14, 2011 meeting were approved. 7. Updates were provided by teams working on various manuscripts for the Family and Consumer Sciences Research Journal. 8. Another discussion focused on possible presentations for the following meetings: Eastern Family Economics Resource Management Association, Feb. 29-March 2, 2012, American Council on Consumer Interests, April 11-13, 2012. 9. Officers were elected for the new cycle starting August 2012 at the annual meeting: Michael Gutter, Chair; Soo Hyun Cho, Vice Chair. 10. Sharon Devaney lead a discussion on differentiating the dependent variables in each paper and small group work concluded the meeting before adjournment.

    Accomplishments:
    Data were collected from a random sample using a web based survey in December 2010. Households surveyed had incomes up to $80,000 and the age range of interest was age 24-64, resulting in a sample of 826. Short-term Outcomes: Not applicable Outputs: The following manuscripts are in the review process for the Family and Consumer Sciences Research Journal. " Psychometric Properties of Scales in the NC1172 Complex Nature of Saving Data Set. C. Hayhoe and M. E. Gutter " Gender Differences in Retirement. P. Fisher, C. Hayhoe, J. Lown " The Role of Money Attitudes on Savings Behavior. C. Hayhoe, S. Cho, S. Worthy, J. Kim, and L. Gorham.

    The following manuscripts are in progress and should be submitted to the Family and Consumer Sciences Research Journal. " The Role of Self-Efficacy in Savings Behavior. J. Lown, J. Kim, and M. Gutter " Financial Risk Tolerance and Savings Behavior. D. Evans, J. Lown, S. Cho, and M. Gutter " Structural Equation Model and Use of Savings Instruments. NC-1172 Team Members " Effect of Socialization of Financial Management Behavior. S. Cho, M. Gutter, J. Kim, and T. Mauldin. " Home Ownership as a Savings Tool in Low to Moderate Income Households. C. Solheim, M. Gutter, Liz Gorham, and C. Bowen Manuscripts in Progress for Other Journals (not FCSRJ) The Role of Human Capital, Financial Knowledge, and Social Capital Among Low- to Moderate-Income Households. V. Bhargava and T. Mauldin. A Conceptual Model of Facilitators and Barriers to Savings Among Low- to Moderate-Income Households. T. Mauldin, M. Cheang, C. Bowen. Proposals Submitted for Presentations at Professional Meetings " Poster, Health and Financial Well-Being of a National Sample of Low to Moderate Income Consumers by S. Worthy, S. Cho, and S. DeVaney will be submitted to the American Council on Consumer Interests. " Poster, Barriers to Savings among Low to Moderate-Income Households: Differences among Those Who Think They Can Save and Those Who Think They Cannot Save. T. Mauldin, M. Cheang, and C. Bowen " Human Capital, Financial Knowledge, and Social Capital: Differences among Savers and Non-savers in Low to Moderate Income Households. T. Mauldin & V. Bhargava Activities: Not applicable Milestones: Not applicable

    Impact Statements:
    Last Modified: 07-Oct-2011

    Date of Annual Report: 09/18/2012

    Report Information:
  • Annual Meeting Dates: 08/01/12 to 08/02/12
  • Period the Report Covers: 10/2011 to 09/2012

    • Participants:
    Brief Summary of Minutes of Annual Meeting:
    File is attached


    URL: Copy of minutes

    Accomplishments:
    External requests to use the survey were discussed and a suggested procedure for handling future requests were offered. C. Bowen will follow-up with the current request from Ronnel Fernando and check for updates with University of Georgia requestor, who was granted permission in early 2011 to use the survey in Africa. M. Gutter demonstrated how to use Dropbox for sharing NC1172 files. Going forward, Dropbox will be used instead of ANGEL because it is easier and more accessible without passwords. Everyone can upload documents and there is an application for iPhone, iPad, and Android devices.

    M. Gutter shared details about the military project proposal initiated by a request from NIFA/Susan Shockey. Former member Celia Hayhoe, and Michael Gutter and Jinhee Kim submitted the initial work. The proposal has received some interest but no funding has been received. The proposal has received some interest but no funding has been received

    Members who were involved with international data collection updated the group on the progress

    Impact Statements:
    1. The number of discussions about personal finance parents have with offspring while they are being reared increases the likelihood of respondents planning their spending and having written goals
    2. Practicing recommended financial management behaviors and a low level of anxiety are likely to encourage saving regularly
    3. Saving regularly is a predictor in whether low to moderate income consumers have life insurance
    4. Economic and sociological factors explained whether respondents had a savings or investment account
    5. Economic factors impacting the likelihood of having a saving account included age and using selected financial practices; while education, gross income and net worth, impacted the likelihood of having both a savings account and an investment account
    6. The sociological factor associated with saving was the increased number of information sources used in making financial decisions
    7. No psychological factors were significant to having a savings and investment account
    Last Modified: 25-Sep-2012
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