Spending Patterns Research Articles

The Interplay of Mental Budgeting, Self-Control, and Financial Behavior: Implications for Individual Financial Well-Being

According to behavioral finance, people are not always rational in managing their finances. The financial stability of a person is directly linked with the spending style and pattern of the individual. This research investigates how mental budgeting influences financial behaviors and altogether financial stability, with a focus on the moderating effect of self-control. To explore this, we studied 294 people to see how mental budgeting affects their financial management and well-being, and how self-control plays a role in this process. A self-administered questionnaire was adapted to gather responses of the employees working in various organizations in Lahore. Smart PLS and SPSS were utilized to analyze and measure the responses collected from respondents. This study found that people are able to better manage their finances when they use mental budgeting. Similarly, there is clear evidence that mental budgeting has an association with financial well-being and financial behavior. The path coefficient uncovers the moderating impact of self-control on financial management behavior and financial wellness. These findings suggest that teaching people about mental budgeting and self-control in financial education programs might help them make better financial decisions. This study adds to our understanding by showing how these factors work together to influence financial behavior, highlighting the need for more tailored financial advice that considers both mental budgeting and self-control. This research helps clarify how people can better manage their finances through both mental strategies and behavioral control, contributing valuable insights into effective financial management practices.

Characteristics and spending patterns of high-cost child patients: findings from Fujian in China

BackgroundThe health condition during childhood has been shown to influence an individual’s health and socioeconomic status in adulthood. Understanding the concentration and persistence patterns in children’s healthcare expenditures is crucial for providing risk protection and promoting the well-being of children. Studies regarding the concentration and persistence of health expenditures have focused mainly on elderly individuals in developed regions. To gain insights into factors that contribute to childhood health expenditures, this article examined children with high costs (that is, in the top 10% of the expenditure distribution) and explored the characteristics and spending patterns that distinguished them from other patients in the context of the largest developing economy—China.MethodsBy using a unique individual-level administrative claims dataset over a 5-year observation period, this study identified spending concentrations and the proportion of children whose costs remained high over five years using a linear probability model and logit regression analysis.ResultsTeenagers from 12 to 17 years old were more likely to persist in the high-cost group than any other age groups in the study. Pediatric complex chronic conditions and other severe health ailments were predictive factors for entry into and persistence in the high-cost category. More than half of the total health expenditures were attributed to children in the top 10% expenditure group. In addition, risk protection and healthcare insurance support for high-cost children was found to be inadequate, particularly for children from low-income families.ConclusionsHealthcare support for children impacts individual development and family financial status. This study described the characteristics and spending patterns of children patients in the largest developing country. The fact that over half of total expenditures are concentrated toward 10% of patients makes it valuable to consider relevant support for this group, especially for families whose medical costs are higher than income.

Optimal withdrawal frequency for sustainable retirement withdrawals

AbstractResearchers have studied factors that influence the sustainability of retirement withdrawals (e.g., withdrawal rate, withdrawal rules, volatility, asset allocation, taxes, longevity) for 30 years. The frequency of withdrawal patterns (e.g., annual, quarterly, monthly) has escaped inquiry. This study uses Monte Carlo simulation to show that, despite intuitive reasons to believe that dividing retirement withdrawals into smaller amounts over more frequent intervals might control volatility or sequence of return risk, withdrawal frequency has no effect on retirement withdrawal sustainability. This result is robust to simulated markets characterized by: (1) a random walk, (2) simulated markets that are autocorrelated, (3) historical returns series randomly chosen from historical return records, and (4) historical returns in their original sequence. It also highlights factors (e.g., time in market, matching withdrawals to spending patterns, and maximizing optionality) that can enhance value or increase retiree utility.

Taxation and Consumers’ Spending Patterns in Nigeria: An Autoregressive Distributed Lag and Error Correction Model Approach

This study evaluates the effects of personal income tax and consumption tax on the spending system of consumers in Nigeria. The autoregressive distributed lag (ARDL) model has been employed for the co-integration test. The research additionally employs the Error Correction Model (ECM) to assess the pace at which any divergence from the long run equilibrium can return to normal in the current period. The findings show that Value added tax has an insignificant impact on purchasing power of consumers in both the short and long intervals. However, personal income tax and exchange rate exert substantial positive effect on consumer spending power in the long run but not in the short run. At the 1% level, the ECT coefficient is shown to be significant and unfavourable. This demonstrates a pretty slow convergence rate, with the model pushing itself towards equilibrium by 37% each year. The consequence is that any disequilibrium caused by shocks from the previous year requires 37% adjustment speed to return to long-run equilibrium in the current year. There have been several studies on how consumption tax affects households’ welfare without considering the effects of income tax and ever fluctuating exchange rate alongside these whole scenarios. This study puts all of these issues into consideration and contributes meaningfully to the existing literature that personal income tax is an integral part of the factors that affect households’ spending capacity. The study recommends that proper tax policy to enhance consumers’ spending capacity.

Remittance Dynamics: Unraveling Socio-Economic Impact on Households in Pokhara

This research aims to evaluate the socio-economic implications of remittances on households in Pokhara Valley, Nepal by employing a positivist approach, empirical observation, quantitative analysis, and statistical methods through comparative research design and utilizes statistical tools such as chi-square tests and independent samples t-tests. Quantitative data are collected through structured questionnaires, enabling numerical insights into spending patterns, human capital investments, and agricultural involvement for hypothesis testing. From the findings of this study households receiving remittances demonstrate higher investments in health and education, positively impacting their socio-economic status. However, migration for remittances has led to a decreased labour supply, negatively affecting agricultural involvement. The research concludes by emphasizing the need for further comprehensive research to elucidate the broader socio-economic consequences of remittances on households at the national level. The study holds implications for policymakers, urging measures to encourage remittance investments in domestic development. It recommends addressing import trends and balancing payment deficits by leveraging remittance funds. Additionally, the research suggests for initiatives supporting agricultural production, small industries, and market development to utilize remittance funds for broader economic growth.

Pola Pengeluaran Penerima Beasiswa KIP KULIAH: Prioritas Penggunaan Dana Antara Kebutuhan Esensial dan Gaya Hidup

The KIP college scholarship is one of the government programs to help outstanding students but with poor economic backgrounds. The use of KIP college funds should be used for educational needs as it should be that the money comes from the government. The purpose of this study is to analyze the spending patterns of KIP college recipients between essential needs and lifestyle needs. The method used in this research is quantitative method. In this study used data collection in the form of a closed questionnaire through google form, this questionnaire has been filled in by 103 KIP college student respondents spread from public universities in Indonesia. The results showed that the KIP college scholarship had helped the recipients of the scholarship to meet the costs of living and education, they also had a positive impact on the responsibility and wisdom of the pattern of spending funds that had been given by the government as evidenced by the priority scale of supporting lectures, but there were still some respondents who used KIP college funds to meet lifestyle.

THE EFFECT OF BUY NOW, PAY LATER FINTECH ON TRADITIONAL FINANCIAL SERVICES AND CONSUMER BEHAVIOR IN SAUDI ARABIA

This research investigates the impacts of financial technology (Fintech) on traditional financial services and the emergence of Buy Now Pay Later (BNPL) companies within the Kingdom of Saudi Arabia. Fintech signifies a paradigmatic shift in the financial landscape, utilizing technology to transform banking, payment systems, investment strategies, and lending practices. The BNPL model, recognized for its disruptive nature, enables consumers to divide purchases into interest-free installments, thereby reshaping global consumer spending patterns. This study concentrates specifically on the Saudi Arabian context, where Fintech adoption is experiencing rapid growth. It scrutinizes the factors that influence BNPL adoption behavior among Saudi consumers, addressing a research void in localized studies. A sample of 100 consumer participants responded to an online survey. The statistical analysis underscores the strength, significance, and correlation between financial elements and the factors crucial to the decision-making process for BNPL adoption. The descriptive analysis of Independent Variables (IVs) encompassing Performance Expectancy (PE), Effort Expectancy (EE), Social Influence (SI), and Facilitating Conditions (FC) has provided significant insights into the perceptions of consumers regarding the adoption of Buy Now Pay Later (BNPL) services. The analysis has revealed noteworthy patterns in the data. Performance Expectancy (PE) demonstrates moderate perceptions (Mean = 2.98), indicating a measured belief in the usefulness of BNPL. Furthermore, Facilitating Conditions (FC) registered moderate scores (Mean = 3.04), underscoring the significance of favorable external factors. Collectively, these findings depict a moderate inclination and a generally positive outlook among respondents towards BNPL adoption, providing insights into the factors influencing their adoption behaviors. The research findings contribute to academic comprehension, provide insights for industry stakeholders, and inform the development of policies and regulations within Saudi Arabia's dynamic Fintech ecosystem. Future studies may utilize longitudinal studies, conduct cross-cultural comparisons, and explore technological integration in exploring the BNPL consumer behavior studies.

Moneymate: A Finance Application

Abstract: Moneymate stands as a comprehensive finance application, simplifying personal finance management with ease and precision. It meticulously tracks daily expenditures, offering insightful visuals and categorizes expenses for effortless analysis of spending patterns. Serving as a centralized hub for financial information, it provides real-time updates on assets and currency values relative to the Indian Rupee, aiding informed decisions on investments and transactions. Beyond mere tracking, Moneymate empowers users with tools for goal setting, savings budgeting, and income optimization, fostering a proactive approach to financial planning. Personalized insights and actionable recommendations further enhance its utility in financial decision-making. With a user-friendly design and powerful functionalities, Moneymate transforms the landscape of personal finance management, simplifying tasks such as daily spending, asset management, currency conversion, and income tracking. Its holistic approach makes it an indispensable companion for individuals seeking control and empowerment over their financial health.

Application of the FP-Growth Algorithm in Consumer Purchasing Pattern Analysis

Technology is currently used in various ways, one of which is businesses engaged in selling daily products. The right marketing strategy makes knowledge of consumer shopping patterns important to study because consumers are the main actors in carrying out transactions. The more diverse the types of goods sold in a company, the more diverse the resulting consumer spending patterns will be. Data mining is an analysis process that is carried out automatically on complex and large amounts of data to obtain patterns or trends that are generally not realized. The FP-Growth algorithm is an alternative algorithm that can be used to determine the data set that appears most frequently (frequent itemset) in a data set. The method used in this research is the FP-Growth method which is implemented in the PHP programming language and MySQL as the database. Designing a data mining program using the FP-Growth method can analyze and manage consumer purchasing patterns based on goods purchased simultaneously. The data processed in this research is transaction data that has been processed into information so as to gain knowledge in calculating stock of goods sourced from the owner of Toko Asra. From testing this method, results were obtained from the 10 transactions in December 2021, by limiting the minimum support value to 0.2 and minimum confidence to 0.75, 33 patterns of consumer shopping habits were obtained, meaning that 33 products were most frequently purchased by consumers. Designing a data mining program using the FP-Growth method can help analyze consumer purchasing patterns based on items purchased simultaneously. The results of frequent itemset calculations can help find a sequence of combinations that can be used as product recommendations in business decision

Luxury brand at the cusp of lipstick effects: Turning brand selfies into luxury brand curruncy to thrive via richcession

A fear of a richcession is on the horizon. The luxury industry must rekindle customer desires and promote brand selfies in order to survive. The narcissist and materialist affluent people upload their selfies along with luxury brand signatures, and this triggers the self-inferential process in the fellow affluent and shapes their luxury preferences. This study investigates this phenomenon, the lipstick effect, and its connection with richcession. A niche group of ultra-rich affluent people was chosen based on their spending patterns, their access to famous personalities, their choice of expensive places, their usage of luxury products, and their postings of selfies with luxury signatures. The study developed a measurement scale via a three-step survey-based approach by analyzing 468 questionnaires. The confirmatory factor analysis (CFA) proposes 27 items of a new scale. The structural analysis was then conducted in order to ensure the scale validity and stability by employing a new dataset of 356 questionnaires. We demonstrated how luxury brand selfies influence luxury signature, and how this in turn affects luxury brand currency and preference.

Money Talks: A Holistic and Longitudinal View of the Budget Basket in the Face of Climate Change and Sustainable Finance Matters

This study presents a holistic and longitudinal view of the household budget basket concerning climate change and sustainable finance matters. It aims to understand their impact on the budget basket by examining the relationship between money, climate change and sustainable finance in a global economy for transition countries. Comprehensive CPI data were collected in Kosovo from 2002 to 2022, and data analysis was performed using statistical methods such as t-tests and proximity matrixes in SPSS. The results show significant differences between the average and desired values within the budget basket, indicating changes in consumer behavior, particularly in food expenditures, budget allocations, and climate change impacts. Interesting patterns emerge, such as correlations between bread, cereals, and meat, and the absence of fish in some purchases. Spending on clothing and other goods also deviates from desired values. These findings highlight the complex relationship between money, climate change, sustainable finance, and consumer spending patterns, and underscore the need to address the gap between expected and desired spending values for the global economy in transition economies. Future research should focus on analyzing household spending and its interaction with other factors to improve personal financial management and promote sustainable financial behavior in a larger number of global economies.

Expense Tracker App

Abstract: The expense tracker application presents a comprehensive solution for efficient financial management and savings optimization. With a user-friendly home page showcasing transaction summaries and interactive graphs, users gain immediate insights into their spending patterns. The dedicated savings page facilitates goal-setting and progress tracking, enhancing financial discipline. Additionally, the app features an expense updating mechanism for real-time data accuracy. Future iterations will incorporate machine learning algorithms to provide personalized recommendations and predictive insights, further empowering users to make informed financial decisions. With its intuitive interface and future-proof design, the application emerges as a pivotal tool in navigating the complexities of personal finance, fostering proactive savings habits and financial well-being.

INFLATION AND ITS EFFECTS ON CONSUMER BEHAVIOR AND ECONOMIC POLICIES

In Uzbekistan, inflation exerts a profound influence on consumer behavior and shapes the country's economic policies. This article explores the unique dynamics of inflation in Uzbekistan, its impacts on consumer behavior, and the corresponding economic policy responses. Inflation alters the purchasing power of Uzbek consumers, impacting their spending patterns and savings decisions. As prices rise, consumers may prioritize essential goods and services, adjusting their consumption habits accordingly. Such shifts in consumer behavior have significant implications for businesses and market dynamics within the country. Understanding the interplay between inflation, consumer behavior, and economic policies is essential for policymakers and stakeholders in Uzbekistan to navigate the complexities of the economy effectively.

Funding Social Services: Addressing Local and Regional Development Challenges

This study examines the evolution of social service financing at the regional and local levels within Poland's market economy, highlighting not only the challenges in financing but also the efficiency concerns that could be addressed within public sector entities to foster socio-economic development. Through analytical and empirical methods, this research evaluates the impact of governmental units on socio-economic growth, focusing on an analysis of financial capabilities and spending patterns of local governments. Previous studies indicate that the growth of social services in Poland's market economy has been driven largely by the efforts of public sector organizations, emphasizing their role in encouraging development. Looking ahead, the research identifies the potential for enhanced collaboration with third-sector entities and a shared responsibility for addressing both economic and social issues.

Has the Consumer Perception Changed? An Overview of Consumer Behavior towards Organized Retail Sectors in Kolkata, India

The research paper focuses on the change of consumers’ perception towards purchasing different commodities in the organized retail outlets of Kolkata. The study revealed that the behaviour of a consumer towards a particular outlet mainly depends upon factors like product availability, spending pattern, sales man services, store layout etc. The research shows that currently a large section of consumers is attracted towards the organised retail outlets because of wide range of services like variety of payment options provided by the store, visibility of the billing counter, wide range of brands availability, quality of the products, and better service at the store have majorly attributed to preference of organized retail store over the unorganized outlets. Also, parameters like visibility of display of MRP, discount offers, quality of service at the organized store, trolley service facilities etc. are some of the reasons of inclination of consumers towards organized retail stores as compared to traditional retail formats. The study has found mostly the younger generation consumers are tending to have a tendency towards making new experiences mainly for groceries and have an urge to make spontaneous purchases compared to older generation of consumers. Apart from the positive aspects, the study also observed a bunch of constraints that restricts a consumer from going to an organized retail store which are the factors like lower budget, inability of the lower income group of people due to financial constraints, lack of advertisements, unavailability of low-priced products, most of the necessary products being easily available in the traditional markets, illiteracy etc. are some of the major constraints found in the study which have contributed to 19.48% of variance and has been further renamed as consumers perception by using the Principle Component Analysis (PCA) method.

The consumption expenditure response to unemployment: Evidence from Norwegian households

This paper examines heterogeneity in household income and consumption responses to unemployment, using granular administrative tax data from Norway. On average, unemployment results in a significant, lasting income reduction, accompanied by a decrease in consumption expenditures of between one-third to one-half of the income loss. We find that households with greater liquid assets at the outset experience less of a decline in consumption, whereas those with higher levels of debt encounter a more substantial decrease. Notably, also the interaction of liquid assets and debt holdings matters for the consumption response. While households with larger initial liquid asset holdings on average respond less, the analyses show that this is not the case among households that simultaneously hold substantial amounts of debt, thus adding to a more nuanced view of the importance of household heterogeneity for economic outcomes. Furthermore, our investigation into heterogeneity across family composition and child age uncovers distinct patterns in consumption responses, highlighting the varied impacts of unemployment. Lastly, we find that spending patterns, as indicated by the marginal propensity to consume (MPC), become more pronounced during recessions.

Balancing Act: Exploring the Relationship between Inflation and Consumer Behaviour

This study investigates the intricate relationship between inflation and consumer behaviour in the contemporary economic landscape. Through a comprehensive analysis, we explore the impact of inflation on consumer spending patterns, considering demographic influences and adaptive strategies employed by individuals. The research utilizes regression analysis, ANOVA, and qualitative survey data to unravel the complexities of this relationship. Findings reveal a significant positive correlation between inflation rates and specific consumer spending categories. Demographic factors collectively exhibit a noteworthy influence on how diverse groups respond to inflation, emphasizing the need for targeted strategies. Additionally, the prevalence of adaptive strategies, with a focus on savings adjustments, highlights practical measures consumers adopt to navigate economic challenges. The study contributes valuable insights for businesses, policymakers, and researchers seeking to understand and navigate the dynamics of consumer behaviour in the face of inflationary pressures.

Key Factors that Influence Post Pandemic Online Purchase Intention of Generation Y and Z in Malaysia

As the Movement Control Order (MCO) was imposed in Malaysia in March 2020, many small and medium enterprises (SMEs) have engaged in online platforms to sustain their business. However, there have been significant changes in consumer trends and spending patterns accompanied by rapid digital adoption since MCO. Consumers’ shopping habits have changed as a result of MCO, and they maintained this habit even after MCO. Therefore, this research examined the key factors that influence post-pandemic online purchase intention in Malaysia, which include influencer marketing, live streaming commerce, loyalty programs, and online shopping experience. The theory of Planned Behaviour (TPB) model was used to explain consumer behaviour. 30 sets of surveys were used to carry out the pilot test. Purposive sampling was used to collect 384 sets of data from 5 states with the most e-commerce users in Malaysia which included Selangor, Kuala Lumpur, Johor, Pulau Pinang, and Perak. Cronbach’s Alpha was used to determine the reliability of the variables. Pearson Correlation Analysis was used to measure how 2 sets of data were related. Multiple Regression Analysis was used to describe relationships between variables. The result showed that loyalty programs and online shopping experience have a significant relationship with online purchase intention while influencer marketing and live-streaming commerce have no significant relationship with online purchase intention. The online shopping experience has the strongest influence on online purchase intention. In this regard, this study will provide profound insights to online purchase intention of generation Y and Z in Malaysia.

Exploring the Reactions of Bottom of The Pyramid Consumers when Protecting Consumer Rights

Supposedly the popular belief that customers actively participate in market activity is not always the case. This is primarily due to marketers' poor consideration of consumer rights protection and a lack of awareness about the issue among both marketers and consumers. This is especially evident in developing-country markets like Sri Lanka, where certain consumer segments, such as those at the Bottom of the Pyramid (BOP), face limited consumption opportunities, making them vulnerable. As a result, the goal of this study is to investigate BOP customers' attempts to act against violations of consumer rights in an environment defined by constrained spending patterns. In-depth interviews were conducted with twenty participants from vulnerable populations in Sri Lanka's southern province. The participants were chosen using a non-probabilistic snowball sampling method, and the data was analyzed thematically. According to the study, there are two basic categories of attempts exhibited by the Bop population when acting against the violation of consumer rights. The expressive approach and the silent approach are the two approaches. Under each approach, sub-themes were identified. Although a consumer protection mechanism exists, it does not always provide adequate protection to consumers in the BOP sectors, adding to greater vulnerability and disparities in the marketplace. Keywords: BOP consumers, Consumer rights, Vulnerability

Patterns of Advance Child Tax Credit Receipt and Spending among Children with Retired or Disabled Household Members

Patterns of Advance Child Tax Credit Receipt and Spending among Children with Retired or Disabled Household Members