Factors Associated with Households’ Planning Horizons for Making Saving and Spending Decisions

Abstract

This study used the 2010 Survey of Consumer Finances to investigate which demographic factors are associated with households’ planning horizon for making saving and spending decisions. The planning horizon plays an important role in explaining household asset accumulation and financial security. Because of its critical influence, it is important that financial counselors and educators understand how to communicate with their clients to lengthen their planning horizon. The results of the ordinal logistic regression showed that age, race, education, marital status, and gender were related to the length of the planning horizon. Households who have an older White male head, have more years of education, and are married have higher odds of having a longer planning horizon.