Financial Responsibility, Personality Traits and Financial Decision ...

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Table 1— Summary statistics (n=1,721) Section A shows that the 54.17 percent of our respondents is male, and that the average respondent is 57 years of age, lives in a household of 2.40 persons, has 0.62 children and earns 1845 Euros net of tax every month. Besides the age structure, these characteristics coincide strongly with the averages for the Dutch society at large. DHS respondents are older than the average person in the Netherlands, since the panel was constructed in the early 80s and has gradually aged ever since. Here, we also find that spenders are slightly older than the sample average, while savers earn the highest net income. Figure 1— Self reported savers (n=1,721) To briefly highlight some of the demographics of the self reported savers versus spenders, we plot the fraction of savers in our sample across age, gender, household size, and income groups in figure 2. This illustrates the results of section A of table 1 and shows that men do not consider themselves as significantly greater savers than women, but this tendency does increases with age, household size and income. In section B of table 1, we find that the majority of our respondents were born in the era after the second world war; that 25.83 percent of respondents were born into a family that was better off than average; that 53.75 percent received pocket money from their parents at the age of twelve; and that 21.26 percent had parents that saved for their education. These statistics vary across savers and spenders. We find more savers from younger generations, and we find that these savers were more often born into families that were better off than average, with parents that saved more often for their education, and that were more likely to hand out pocket money, when compared to spenders. Section C shows that after youth 39.40 percent of our respondents enjoyed some college education. 27.14 percent of our respondents claim to 10
e good at mathematics, and merely 10.51 percent keeps up with the financial news, and 71.47 percent of our respondents manage the financial administration in the household. We posed each respondent the same six financial literacy questions as used by Lusardi and Mitchell (2007) and 4.18 were answered correctly, on average. This score, on the scale of six, we use as a financial literacy construct throughout our analysis. In Appendix C, we state the scores on each of these six questions separately and we plot the subsamples based on the respondents gender, age, mathematical skills set, and financial interests. Here we find that the variation in this financial literacy construct results mainly from one of the six questions (the one in which we ask respondents on the consequence of a jump in inflation for the value of bonds). When considering these plots, we learn that this question is answered correctly mostly by the respondents that keep up with the financial news, more so than those that are good in math. For the savers in our sample this financial literacy score was only slightly higher, while the overall level of education, financial interest, and mathematical skill set exceeded the sample average more pervasively. Finally, when considering several personality and attitude characteristics across our sample we find that 57.60 percent of our respondents define themselves as religious, 26.79 percent have a left wing political preference, 36.63 percent have positive economic expectations, 62.88 percent keep a tight financial administration and only 9.00 percent like taking financial risks. Across the two sub groups of savers and spenders we find that the self proclaimed savers are more positive about the economic outlook, are more on top of their financial administration and are more likely to vote for centre-leftwing parties during elections. Perhaps the two most noteworthy variables of table 1 are those positioned at the bottom of the table the internal locus of financial control and the 11
Page 1 and 2: Financial Responsibility, Personali
Page 3 and 4: decisions through their understandi
Page 5 and 6: literacy test are 38% more likely t
Page 7 and 8: for their retirement, and thereby r
Page 9: In total, the survey consists of 62
Page 13 and 14: looked at in detail later, and is o
Page 15 and 16: striking are the low scores that we
Page 17 and 18: these two household demographics re
Page 19 and 20: savers, the only interaction effect
Page 21 and 22: References [1] Berman, A. and T. Ha
Page 23 and 24: [19] Modigliani, F., Brumberg,R., 1
Page 25 and 26: Table 1: Summary statistics Total s
Page 27 and 28: Table 3: Robustness test of savings
Page 29 and 30: Table 5: Logit regressions on obser
Page 31 and 32: % Savers 60 50 40 30 20 10 0 Male F
Page 33 and 34: - It is hard to find a good financi
Page 35 and 36: C Financial Literacy Mean Stdev Min
Page 37 and 38: 100% 80% 60% 40% 20% 0% > 1960 1945

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