Understanding Consumer Financial Behavior: Money Management in an Age of Financial Illiteracy

by W. Fred Van Raaij

Government policies, marketing campaigns of banks, insurance companies, and other financial institutions, and consumers' protective actions all depend on assumptions about consumer financial behavior. Unfortunately, many consumers have no or little knowledge of budgeting, financial products, and financial planning. It is therefore important that organizations and market authorities know why consumers spend, borrow, insure, invest, and save for their retirement - or why they do not. Understanding Consumer Financial Behavior provides a systemic economic and behavioral approach to the way people handle their finances. It discusses the different types of financial behaviors consumers may engage in and explores the psychological explanations for their behavior and choices. This exciting new book is essential reading for scholars of marketing, finance, and management; financial professionals; and consumer policy makers.

Genres: Nonfiction, Psychology, Finance

301 pages, Paperback

First published March 23, 2016

Reviews

[Richard · Rating 3 out of 5]

This book is essentially a literature review of behavioral economics research on consumer financial behavior (saving, spending, paying taxes, etc.). There are many brief findings from many studies, but fewer large conclusions.

One warning note - Van Raaij doesn't usually present findings that disagree with one another. I don't know if that's because behavioral economists tend to agree, or if he selected the presented studies using some criteria.