Future Orientation and Saving for Medium-Term Expenses

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 510 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.