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NC1013: THE ECONOMIC AND PSYCHOLOGICAL DETERMINANTS OF HOUSEHOLD SAVINGS BEHAVIOR

Annual/Termination Reports (SAES-422): [09/07/2005] [05/10/2006] [09/05/2007] [07/30/2008]

Date of Annual Report: 09/07/2005

Report Information:
  • Annual Meeting Dates: 08/09/04 to 08/10/04
  • Period the Report Covers: 10/2004 to 09/2005

    • Participants:
    Brief Summary of Minutes of Annual Meeting:
    NC1013 The Economic and Psychological Determinants of Household Savings Behavior Research Project Meeting Chicago, Illinois, August 9-10, 2004

    Attending: Cathy Bowen, Bernadine Enevoldsen, Liz Gorham, Mike Gutter, Sherman Hanna, Celia Hayhoe, Lisa Marcinko, Teresa Mauldin, Nancy Porter, Jane Schuhardt, Catherine Solheim

    Goal: Draft data collection instrument

    Activity: Team members discussed variables to arrive at consensus about what to include in the draft. We agreed that for those questions that were also on the SCF we would like to use parallel language to allow for comparison. Small groups worked on various sections of the draft: Teresa and Nancy on demographics; Lisa on income sources and wealth; Mike on education; Celia on access to financial benefits; Liz on encouragements to save; Bernie and Cathy on money management behaviors; Sherman and Mike on savings measures; Jane on funding sources.

    Outcomes: Work groups reported back to the group as a whole and discussed. Mike will incorporate ideas into the next draft of the instrument. Jane presented the following framework and suggestions for funding:

    Funding Possibilities Discussed and Matrix Developed Category/Who/Trigger/Why/Contact Foundations/NEFE(75-100k)/Savings/Anthes Foundations/FPA/Planning Fooundations/CFP Board(small)/Planning/Diffendaffer Foundations/CFA/Savings/Steve Brobeck Foundations/Ford/Savings/Barron Tenny Foundations/Investor Protection Trust/Investment decisions/Don Blandin FederalGov/CSREES-No FederalGov/ERS/Rural/Offutt FederalGov/Treasury/GAO/Savings rate/Ianicola Corporate/Citigroup/Financial literacy/ Dara Duguay Corporate/Chase Education 1st/Personal finance/Pam Britton

    Next Steps: Mike will send out a revised draft to group in September. Feedback will be discussed via the listserv during October. The next meeting will be held via conference call from 10-11 on November 12. Following, we will seek estimates from survey research centers and apply for human subjects approval. Cathy and Jane will make some potential funder contacts in D.C. in September. The team will discuss authorship and data usage in December.

    Notes to Self regarding follow-up: " Contact Robin D. about non-participation in project " Set conference call time for December " Add Lisa Marcinko to listserv " Check on Bernadine.Enevoldsen@sdstate.edu on listserv with Sue Badenhof

    Notes from NC1013 Follow-up Funding Exploration on September 15, 2004 in Washington, D.C. by Jane Schuchardt and Catherine Solheim

    NOTE: Thanks to Jane for supporting us with her unbelievable connections and reputation in Washington, D.C.

    Wrote one-page descriptor to share with potential funders or advisors

    Visited by phone with Pam Britton from Chase Education First Foundation. She expressed interest in the project and requested a brief description so that she could share with Chase to gauge their interest. Later Jane received communication that Pam was waiting to learn which group in their new structure would be most appropriate.

    Visited by phone with Dara Duguay at Citigroup (duguayd@citigroup.com). She expressed interest in the project and asked for a brief description as well as clarification of universities 501C3 or tax exempt status. Mike Gutter was contacted and he provided us with the documentation from Wisconsin that was forwarded to Dara.

    Met with Steve Brobeck, Consumer Federation of America, for advice on how we might proceed to seek funding. He suggested that what most people are interested in is why savings education does or doesnt work. He also suggested we develop an informal advisory committee of research and industry leaders to help move this forward. Two academics he mentioned as having national recognition are Mike Staton at GWU (formerly at Purdue) and Elizabeth Warren at Harvard. Steve also suggested Citigroup, American Express, and NEFE as potential funding partners. Finally, he suggested that the Opinion Research Corporation at Princeton might be a cost-effective option for data collection.

    Accomplishments:
    Milestones Achieved in 2004-2005 1. Pilot instrument and methodology developed 2. Funding options explored (see August 9-10 meeting minutes) 3. Conference Calls held December 14, 2004; March 7, 2005 4. Face to face meeting held August 9-10, 2004 in Chicago

    Plans for 2005-2006 1. Pilot instrument and methodology in multiple states with multiple groups - fall 2005/winter 2006; use state resources where available to fund pilot 2. Continue to seek external funding for large-scale study 3. Hold monthly conference calls to keep momentum going 4. Hold face to face meeting in January, 20006 to review pilot data and revise instrument and methodology

    Impact Statements:
    Last Modified: 18-Oct-2007

    Date of Annual Report: 05/10/2006

    Report Information:
  • Annual Meeting Dates: 03/23/06 to 03/24/06
  • Period the Report Covers: 10/2005 to 09/2006

    • Participants:
    Brief Summary of Minutes of Annual Meeting:
    Thursday, March 23, 2006

    Liz Gorham served as acting Chair and Celia Hayhoe served as acting secretary. Liz called the meeting to order at 1:00 pm. The list of the membership was distributed; members were asked for corrections  these will be used as the official names, titles and contact information for future published articles. Corrections will be sent to all members.

    Welcome from Robin Douthitt In the future Hatch Funds will become competitive. Expanding the breath of National Research Incentive grants by moving to Knowledge Areas (KAs) - i.e., #801 is individual and family resource management. If in DC, visit with Pat Hipple at North Central Regional Association (NCRA)&. See NCRA Regional Update, 2(3), Winter 2006. NC 1013 project is up this year for midterm re-approval (October 2006?)

    A motion to approve the minutes of the last meeting face-to-face meeting in Chicago in August 2004 was made by Michael Gutter and seconded by Nancy Porter; it passed unanimously. Milestones: Liz reported that we are a little behind time (to be on target we need the national data collected by June 2006) but we can do some writing preparations for papers and should be able to be on schedule in 2007. Report on Funding: Michael reported that Northwest Mutual funded the pilot and are interested in partnering to fund the full study. Jane had sent an email on her meeting with Financial Planning Association.

    Presentation of pilot survey: Michael reported on the phone survey data information (only part yet available).

    Guidance for future data collection: Accept respondent on initial phone call if 1) non-retired and 2) at least one person in the household is age 30-55. So as not to upset those that are dual heads of household, the interviewer will ask for the person in the household who is most financially knowledgeable to complete the surveys.

    Problems were noted with data collection. Other needs were identified: 1) Design group website so we are all looking at the instruments, decisions, data, coding, etc. 2) Set time frame as to when data set is made open to the public  after Fall 2008? 3) Completed guidelines for publishing from the data, intellectual property rights, and for adding additional members to the group (use Jean Bauer NC 1011 document as an example)  ready for discussion in April or May call.

    The rest of the afternoon was spent on organizing the presentation to FPA

    Friday, March 24

    Specific next-step tasks were identified and committee work prioritized. Michael, Cathy, Sherman,Catherine: Culture and Acculturation Cathy, Liz and Celia: Credit and money attitudes Nancy: Socialization Nancy  Outline the survey detailed changes from the focus groups (collect tapes for review as deemed necessary) by May 12 call (additional focus group reports from Michael, Liz and Bernadine, and Catherine should be sent to her ASAP). Nancy  Specific rewording of instrument questions  by May 12 call Theresa  Co-habitation Sherman  Corresponding variables to the Survey of Consumer Finances database to get baseline for April Call for Current Job Status (# 35 & #37) and for other variables which correspond to variables on the 2004 SCF (weight will be adjusted to the sample size of 2000 to be used in our study to get an estimate of how many households we might expect to get in various categories of variables). Celia, Dena and Michael  Validating of scales (possible loadings?) and model with stated hypotheses  by April Everyone - think of one cross tabs that will be interesting for a press release Theresa, Catherine and Cathy - Check on web server for a secure site with the following specifications (by April call): a) Only members can access (privacy) b) Capacity for data sets (SPSS and SAS forms) c) Space for coding for data sets d) Space for latest instruments e) Space for list of important decisions f) Archive capability and back-up Topics in which others might have personal interest? Bernadine and Sharon  rural househoholds?

    Questionnaire changes were identified based on pilot and focus group results.

    Date and location of 2007 meeting The time of April 2007 was suggested for the next face-to-face meeting. The place should take into account the ease of driving to the location for some and the accessibility and cost of flights by others. Suggestions -a return to Atlanta (home to one member of FPA) and site of the next ACCI on April 11-13, 2007 (St. Louis?). Holding our meeting before ACCI would make sense to all but those that would be out a whole week from classroom duties.

    Some faculty are still on the project team list but have not been active for a long time. Robin will remove their names from the NIMSS participant list. Others will be contact to see if they will become active participants. The decision was made to not accept new members to the group, with the possible exception of outside funders.

    The team welcomed visitors from the Financial Planning Association (FPA) Elizabeth Jatton of Atlanta  former President; chair of Public Issues Committee Bob Powell of Boston  Director of Research; Brad White of DC  Director of Public Affairs; Heather Almand of Denver  Director of Public Relations Michael presented the pilot project findings and Robin shared reasons and ways for FPA and NC1013 to work together on this project. The response from FPA was heartening; the impression was that they might be interested in providing at least half the funding ($250,000) but may need to form a coalition of funders which they would be happy to pursue. They will be contacting entities of their choosing before their May board meeting; they will keep in close contact with Jane and Michael. May 2006 was given as a target date for their reply in order for the UWSC to collect national data in Fall 2006-March 2007. Initial discussions of shared intellectual property rights, found characteristics of savers and non-savers, future research to determine effectiveness of prescribed treatments for increasing savings behaviors, designing virtual Website (including it in the eXtension Website), desire of both to teach professionals how to improve their tracking of behavioral change - for taking a possible asset-based approach and building validity in the financial planning profession, scheduling of consortium to spread findings. FPA are probably interested in popular press articles; NC 1013 would focus on referred journals and professional meetings to contribute to the science of our profession. It was felt that we would welcome an FPA researcher only as a co-author with at least one NC 1013 member. It was accepted by both that we would always cite each others contributions in all printed material and mass media. Possible additional products emanating from this partnership  annual savings index component; books for new courses in FPA Press  how to document behavioral change; call for additional follow-up research projects and dollars to support them

    Seek a change in day/time of our conference calls so all group members can participate. Get teaching schedules for Michael, Sherman, Teresa, Sharon, Bernadine and Catherine for Summer and Fall 2006 to assist in that decision.

    Meeting adjourned 2:35 pm.

    Accomplishments:

    Impact Statements:
    Last Modified: 18-Oct-2007

    Date of Annual Report: 09/05/2007

    Report Information:
  • Annual Meeting Dates: 07/12/07 to 07/13/07
  • Period the Report Covers: 10/2006 to 09/2007

    • Participants:
    Brief Summary of Minutes of Annual Meeting:
    Annual meeting of NC 1013

    The NC 1013 Economic and Psychological Determinants of Household Savings Behavior research team met on the campus of the University of Minnesota on July 12 -13, 2007.

    In attendance: Bowen, Cathy (cbowen@psu.edu) Pennsylvania State University; DeVaney, Sharon (sdevaney@purdue.edu) Purdue University, IN; Gorham, Elizabeth (gorham.liz@ces.sdstate.edu) South Dakota State University; Gutter, Michael (msgutter@ufl.edu) University of Wisconsin-Madison; Gustafson, Cole (cgustafs@ndsuext.nodak.edu) North Dakota State University; Hayhoe, Celia (chayhoe@vt.edu) Virginia Polytechnic and State University; Mauldin, Teresa (tmauldin@fcs.uga.edu) University of Georgia; Solheim, Catherine (csolheim@umn.edu) University of Minnesota; Porter, Nancy (nporter@clemson.edu) Clemson University, SC; and Douthitt, Robin (douthitt@WISC.EDU) Administrative Advisor

    Absent: Wise, Dena (dkwise@utk.edu) University of Tennessee; Hanna, Sherman (hanna.1@osu.edu) Ohio State University; and Schuchardt, Jane (JSCHUCHARDT@CSREES.USDA.GOV) CSREES-USDA Representative

    The focus of the annual meeting with threefold: funding, revisions to the theoretical framework and questionnaire, and renewal proposal. We welcomed a new member, Dr. Cole Gustafson from North Dakota.

    ACTIVITIES:

    Funding: Over the past several years the research team has submitted proposals for funding to the following: Citicorp, Financial Planning Association, Northwestern Mutual Foundation, and H&R Block. Northwestern Mutual Foundation funded the pilot study. We continue to explore possibilities for funding a nationally representative sample.

    (1) Northwestern Mutual Foundation, which funded the pilot of our questionnaire, is interested in providing additional funding to the project. Michael Gutter will continue to communicate with this contact to see whether they will fund the total project or need to seek additional partners.

    (2) H&R Block was not able to fund the project this year, however, the proposal was well received and will be forwarded into the 2008 funding cycle for consideration. H&R Block is very interested in supporting the exploratory study to test our revised theoretical framework with a sample of their clients. Several members of the research team will work closely with H&R Block contacts to move this process forward.

    (3) Other possible sources: Two other potential funding partners to approach if additional funding is needed were identified: Wachovia and Synovus.

    Theoretical Framework/Questionnaire: Feedback from Prochaska indicated that our instrument did not clearly fit his model. After discussion and presentation by Michael Gutter of the model he has been testing on financial behavior with college students, a model evolved to reflect a broader approach. This theoretical framework would continue to incorporate some psychological determinants but would also capture some socialization determinants as well. The more ecological perspective was preferred by the team. Several team members will work on refining this new approach. Time was then spent reviewing the questionnaire to determine whether or not questions captured the various factors in the revised theoretical framework.

    Renewal Proposal: After discussion of the model and positive response from H&R Block to help fund an exploratory study testing the revised model, the group felt it was appropriate to move forward with a renewal proposal.

    Accomplishments:
    MILESTONES: In the area of funding H&R Block is very interested in supporting an exploratory study using a sample of their clients and Northwestern Mutual Foundation is interested in providing additional support for the data collection of a nationally representative sample.

    For 2007, members of the research team have in press or published one book chapter, 15 articles in refereed journals, 16 articles in refereed conference proceedings, 7 presentations at professional conferences, and 22 extension publications related to the savings behavior project. In addition, seven grants related to this project have been funded.

    Plans for 2007-2008: 1. Work with H&R Block to carry out an exploratory study testing our proposed theoretical framework. 2. Write and submit renewal proposal. 3. Continue to work with potential funders for a study based on the new model and a nationally representative sample

    Impact Statements:
    1. In 2007, according to current research, revisions were made to the model and questionnaire to reflect the addition of variables in this new model. Committee members are meeting with funders to conduct preliminary tests of the new model. Once the results are analyzed, the committee will seek additional funding for a nationally representative sample that would be large enough for the number of variables included in the model. A large sample size will be sought for the complex analyses needed to address our primary research questions. The sample size will be consistent with those of other national data sets.
    Last Modified: 07-Sep-2007

    Date of Annual Report: 07/30/2008

    Report Information:
  • Annual Meeting Dates: 07/30/08 to 07/30/08
  • Period the Report Covers: 10/2007 to 09/2008

    • Participants:
    Brief Summary of Minutes of Annual Meeting:
    A final meeting of NC 1013 was held at the Holiday Inn Select in Orlando, Florida on July 30, 2008

    Participating: Jan Andersen, Sharon DeVaney, Robin Douthitt, Michael Gutter, Teresa Mauldin, Jane Schuchardt, Cathy Bowen, Liz Gorham, Cole Gustafson. Absent: Celia Hayhoe, Catherine Solheim, and Dena Wise. Guest: Yoshi, graduate student from University of Washington

    Focus of meeting: (1) Discuss policies in use of questionnaire by members of committee and individuals not on the committee (2) Discuss status of Consumer Federation of America (CFA) proposal and Money Management International Financial Education Foundation (MMI) inquiry (3) Discuss strategies for moving forward under NC 1172 (4) Share plans and current activities of members in attendance (5) Reports from Cooperative State Research, Education, and Extension Service (CSREES) Representative and Administrative Advisor

    Use of Questionnaire. (a) Committee members are to inform the committee that they intend to utilize the questionnaire using the method developed by NC 1030 (b) Non- committee individuals are to provide a short description (3-pages) of how the questionnaire will be used, including theoretical framework, timeline, description of sample, and intended methodology. Review process is specified in the cover letter in the posted copy of the instrument on National Information Management Support System (NIMSS) Website. The full committee will review request. Non-committee individuals must clearly attribute the questionnaire to NC 1013.

    Discussion of Status of Consumer Federation of America proposal. CFA is willing to allow us to use the America Saves participants as possible respondents to our questionnaire to test out our model and different methodologies (mail and web-based). It does not appear that they can provide any funding. Several concerns were identified, including privacy issues of America Saves participants, costs of mailing the questionnaire to even a small sample, and need to reduce the number of questions in the questionnaire. Two subcommittees were identified to discuss these issues. One subcommittee is to follow up with CFA regarding America Saves privacy statement, incentives, and funding of a mail questionnaire. The second subcommittee is to focus on which questions might be eliminated from the questionnaire but allow for the testing of the theoretical model.

    Money Management International Financial Education Foundation. MMI has responded that they are interested in a program evaluation component. This would be a significant change from the original proposal. There will be follow up with Steve Bucci to determine if this is a direction of interest to members of the committee.

    Strategies for moving forward with NC 1172. Potential members for the NC 1172 were identified. In addition, announcements will be sent through traditional means as well as through the Agricultural & Applied Economics Association (AAEA) newsletter. Sharing of station activities All in attendance shared information about their research/outreach efforts. Because of the relevance of Michael Gutters study of college students to our theoretical model much of the discussion focused on how those research findings might help the subcommittee reviewing the questionnaire.

    Milestones The renewal proposal was approved and the research group will become NC 1172 in October 2008. The research team worked with two individuals from H&R Block to focus a proposal for funding. Unfortunately, H&R Blocks restructuring ended the opportunity to submit a proposal in that their foundation. The NC 1013 team published their major efforts of the past several years, a questionnaire, to the NIMSS website. During the past year, the committee members published 23 articles in refereed journals, 28 articles in refereed conference proceedings, 12 presentations at professional conferences, and 32 extension publications related to the savings behavior project. In addition, 3 grants related to this project were funded. See attached listing for more detail on the work of committee members.

    Impact The NC 1013 committee has developed a model that recognizes the complexities of savings behavior and a questionnaire to test the model. Existing theories have not adequately addressed the complexities and research is needed to better understand the savings behavior using a more comprehensive ecological model.


    URL: Copy of minutes

    Accomplishments:
    Outputs: The NC 1013 team published their major efforts of the past several years, a questionnaire, to the NIMSS website.

    During the past year, committee members published 23 articles in refereed journals, 28 articles in refereed conference proceedings, 12 presentations at professional conferences, and 32 extension publications related to the savings behavior project. In addition, 3 grants related to this project were funded. Research conducted by committee members has provided more insight to a more comprehensive model to be tested.

    Activities: The renewal proposal was approved and the research group will become NC 1172 in October 2008. The research team worked with two individuals from H&R Block to focus a proposal for funding. Unfortunately, H&R Blocks restructuring ended the opportunity to submit a proposal in that their foundation.

    Milestones: Existing theories have not adequately addressed the complexities of the focus of this committee; research is needed to better understand the savings behavior using a more comprehensive ecological model.

    Impact Statements:
    1. The NC 1013 committee has developed a model that recognizes the complexities of savings behavior and a questionnaire to test the model. Existing theories have not adequately addressed the complexities and research is needed to better understand the savings behavior using a more comprehensive ecological model.
    Last Modified: 15-Oct-2008
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