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Expectations and the saving behaviour of children: analysis of the U.S. panel study of income dynamics

Brown, S. and Taylor, K. (2012) Expectations and the saving behaviour of children: analysis of the U.S. panel study of income dynamics. Working Paper. Department of Economics, University of Sheffield ISSN 1749-8368

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Abstract

In this paper, we analyse the saving behaviour of a sample of children drawn from the 2002 and 2007 Child Development Supplements of the U.S. Panel Study of Income Dynamics. In particular, we focus on the influence of children’s expectations and attitudes towards the future on the total level of children’s savings as well as on savings specifically for future education and savings for other purposes. Overall, our findings suggest that the saving behaviour of children, as measured by the level of savings, appears to be influenced by their expectations, especially expectations regarding future educational attainment and life expectancy. Specifically, the level of savings held by children is monotonically increasing in the expected level of educational attainment and children who are pessimistic about their future life expectancy are found to hold lower levels of savings, which is consistent with discounting future consumption heavily.

Item Type: Monograph (Working Paper)
Copyright, Publisher and Additional Information: The Sheffield Economics Research Paper (SERP) series offers a forum for the research output of the academic staff and research students of the Department of Economics, University of Sheffield. Papers are reviewed for quality and presentation by a departmental editor. However, the contents and opinions expressed remain the responsibility of the authors. All papers may be downloaded free on the understanding that the contents are preliminary and therefore permission from the author(s) should be sought before they are referenced.
Keywords: expectations; household finances; intergenerational analysis; saving;
Academic Units: The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) > Sheffield Economics Research Papers Series
Depositing User: Miss Anthea Tucker
Date Deposited: 03 Jul 2012 09:05
Last Modified: 08 Feb 2013 17:39
Published Version: http://www.shef.ac.uk/economics/research/serps/yea...
Status: Published
Publisher: Department of Economics, University of Sheffield
Identification Number: 2012015
URI: http://eprints.whiterose.ac.uk/id/eprint/74396

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