Why Do Households Lack Emergency Savings? The Role of Financial Capability

Despard, Mathieu R.; Friedline, Terri; Martin-West, Stacia

doi:10.1007/s10834-020-09679-8

Cited by 64 publications

(49 citation statements)

References 67 publications

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“…Others may not have sufficient savings to cope with income loss brought on by the functional implications of HNC, or other financial emergencies. A report by the Board of Governors of the Federal Reserve System found that over a third of U.S. households experienced a health emergency and/or job loss in the prior year and nearly half could not cover unexpected expenses of $400 or more 35,36 . This potential unpreparedness for treatment‐related expenses coupled with significant OOPE may impact future cost‐conscious decision making 37 …”

Section: Discussionmentioning

confidence: 99%

“…A report by the Board of Governors of the Federal Reserve System found that over a third of U.S. households experienced a health emergency and/or job loss in the prior year and nearly half could not cover unexpected expenses of $400 or more. 35,36 This potential unpreparedness for treatment-related expenses coupled with significant OOPE may impact future cost-conscious decision making. 37 Of note, annual OOPE alone were not a predictive metric of patient-reported subjective financial toxicity.…”

Section: Risk Factors For Financial Toxicitymentioning

confidence: 99%

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The cost of cure: Examining objective and subjective financial toxicity in head and neck cancer survivors

et al. 2021

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Background Little is documented regarding objective financial metrics and their impact on subjective financial toxicity in head and neck cancer (HNC) survivors. Methods In a cross‐sectional analysis, 71 survivors with available claims data for HNC‐specific out‐of‐pocket expenses (OOPE) completed a survey including patient‐reported, subjective financial toxicity outcome tools: the Comprehensive Score for financial Toxicity (COST) and the Financial Distress Questionnaire (FDQ). Results Worse COST scores were significantly associated with lower earnings at survey administration (coefficient = 3.79; 95% CI 2.63–4.95; p < 0.001); loss of earnings after diagnosis (coefficient = 6.03; 95% CI 0.53–11.52; p = 0.032); and greater annual OOPE as a proportion of earnings [log10(Annual OOPE:Earnings at survey): coefficient = −5.66; 95% CI −10.28 to −1.04; p = 0.017]. Similar results were found with FDQ. Conclusion Financial toxicity is associated with particular socioeconomic characteristics which, if understood, would assist the development of pre‐treatment screening tools to detect at‐risk individuals and intervene early in the HNC cancer survivorship trajectory.

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Section: Discussionmentioning

confidence: 99%

Section: Risk Factors For Financial Toxicitymentioning

confidence: 99%

The cost of cure: Examining objective and subjective financial toxicity in head and neck cancer survivors

et al. 2021

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“…Households with higher financial knowledge or perceived high financial knowledge are more likely to establish an emergency fund (Babiarz & Robb, 2014). Conversely, another study found that subjective financial knowledge and financial confidence, rather than objective financial knowledge, consistently predict the household status of having an emergency fund from several separate years of National Financial Capability Surveys (Despard et al, 2020). A study focused on millennials found there is a positive relationship between financial knowledge and engaging in beneficial short-term and longterm financial behaviors (Kim et al, 2019).…”

Section: Financial Knowledgementioning

confidence: 97%

Attributes of Households that Engage in Higher Levels of Family Financial Planning

Wann

Burke-Smalley

2021

J Fam Econ Iss

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This research uses data from the 2018 National Financial Capability Study to investigate the attributes of households that engage in higher levels of family financial planning. Greater levels of financial planning are evidenced when households report more positive responses in planning for retirement, saving for emergencies, and establishing a will. Based on an ordinal logistic regression, various demographic attributes, objective and subjective financial knowledge scores, frequency of participation in financial education, and the frequent use of financial websites or apps to help with financial tasks are positively related to higher levels of family financial planning. The results have implications for financial literacy education and the development and marketing of websites and apps for personal finance.

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“…It is natural to set aside a portion of one's earnings for future aspirations and emergencies. Sufficient savings reduces unexpected social and financial shocks (Despard et al, 2020), (Gaisina & Kaidarova, 2017). Banks and Post Offices are common financial institutions for savings.…”

Section: Savings Behaviourmentioning

confidence: 99%

Determinants of Financial Wellness of Rural Households in the Hill Districts of Uttarakhand: An Empirical Approach

2022

IJFB

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The study examines significant contributors to financial wellness for rural households in the hill districts of Uttarakhand. The study takes a sample of 666 respondents through multi-stage stratified random sampling from Self-Help Groups (SHGs) and Cooperatives members, and all are small and marginal farmers. A field survey was conducted using a structured questionnaire. Except for financial knowledge and numeracy, all other constructs, such as cash management, savings behavior, risk-credit management, financial attitudes, and financial wellness, were measured on a seven-point Likert scale ranging from strongly disagree to strongly agree. Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), and Structural Equation Modelling (SEM) were conducted on 628 valid samples using SPSS 23 and AMOS 23. The results from the analysis revealed that cash management, savings behavior, and financial attitudes significantly contribute to financial wellness. The study found that households have the reasonable financial knowledge and financial numeracy skills. The study also found that savings behavior has a mediating effect on the relationship between cash management and financial wellness. The study is useful for rural development stakeholders and policymakers to strategically focus on financial inclusion programs.

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Why Do Households Lack Emergency Savings? The Role of Financial Capability

Cited by 64 publications

References 67 publications

The cost of cure: Examining objective and subjective financial toxicity in head and neck cancer survivors

The cost of cure: Examining objective and subjective financial toxicity in head and neck cancer survivors

Attributes of Households that Engage in Higher Levels of Family Financial Planning

Determinants of Financial Wellness of Rural Households in the Hill Districts of Uttarakhand: An Empirical Approach

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