PSYCHOLOGICAL AND BEHAVIORAL DETERMINANTS OF HOUSEHOLD FINANCIAL BEHAVIOR

• Sponsoring Institution: National Institute of Food and Agriculture
• Project Status: TERMINATED
• Funding Source: HATCH
• Reporting Frequency: Annual
• Accession No.: 0231529
• Project No.: SD00H447-12
• Project Start Date: Oct 15, 2012
• Project End Date: Sep 30, 2017

Project Director
Cho, SO.

Recipient Organization
SOUTH DAKOTA STATE UNIVERSITY
PO BOX 2275A
BROOKINGS,SD 57007

Performing Department
College of Education & Human Sciences

Non Technical Summary
The low and declining saving rates of American households have been a concern for many policymakers and educators in personal finance field. Many researchers and research projects have found there is a link between people being financially secure and being overall healthy. Inadequate emergency savings were shown to lead to increased anxiety among moderate- and low-income households (Brobeck, 2008), which often led to health problems such as lack of sleep. Many researchers feel that having goals and expectations to save money is a major factor in people being able to feel financially secure or not. Venti (2006) also noted that the decision to plan to save for retirement and then executing the plan is influenced by behavioral and psychological factors. People may fail in planning to save due to information being elusive or unavailable, or to the inability to process information. Even when people have saving plans, they may lack the self-control needed to successfully implement the plan due to time-inconsistent preferences, inertia, or procrastination. This research will examine what motivates people to save and what discourages them from saving, the multiple psychological and behavioral factors including regulatory orientation that affect the savings goals to lead into actual savings behavior. Through a multi-state research team has collected data on general and specific financial behaviors and attitudes related to saving. Individual characteristics were measured using various psychological concepts such as money attitudes, risk tolerance, time preference, self-efficacy and self-control. The data will continue to be explored to better understand people's motivation behind savings and other financial management behaviors. This research can help develop and push forward the goals laid out within South Dakota Agricultural Experiment Station. As one theme of the SDAES's current research priorities, this project focuses on better management of people's personal financial resources to enhance their overall well-being. Education on how different saving goals work and what individual characteristics might work for specific saving goals seem to play a vital role in whether or not a person can reach a set goal. As such, the results from this project can be used for the development of personal finance educational programs delivered by the South Dakota Cooperative Extension Service. Identifying the saving behaviors associated with individual regulatory orientation has implications for both public policy and financial educators. Along with the demographic information, individual differences in their regulatory orientation could be used to devise more effective policies and educational materials toward specific population groups to enhance people's savings.

Animal Health Component

(N/A)

Research Effort Categories

Basic

(N/A)

Applied

(N/A)

Developmental

(N/A)

Classification

Knowledge Area (KA)	Subject of Investigation (SOI)	Field of Science (FOS)	Percent
801	6020	3100	100%

Knowledge Area
801 - Individual and Family Resource Management;

Subject Of Investigation
6020 - The family and its members;

Field Of Science
3100 - Management;

Keywords

financial management behavior

psychological factors

behavioral factors

financial goals

regulatory focus

socialization

information source

Goals / Objectives
Americans that don't have financial planning in place to save money are not only at financial disadvantage, their well-being is also impacted. Inadequate emergency savings were found to lead to increased anxiety, which often link to various health problems including lack of sleep, especially among low- and moderate-income households (Brobeck, 2008). While many studies have identified characteristics of savers and non-savers, the reasons underlying saving have not received as much attention (Bucks, Kennickell, & Moore, 2006). Researchers have found that retirement savings are positively related to age (Grable & Lytton, 1997; Warner, 1996), level of household income (Bassett, Fleming, & Rodriguez, 1998; Poterba, 1996), and level of education (Yuh & Olson, 1997). Although positive relationships are found between demographics and saving, relatively little research has been done on the psychological aspects of planning and saving. However, psychological predispositions are expected to mediate the relationship between demographic variables and saving tendencies (Hershey, 2004). Financial well-being is an important issue especially today during current tough economic times in the United States. What does it take for someone to achieve financial well-being and what are the psychological factors behind doing so Many researchers found that having goals and expectations to save money is a major factor in establishing financial security. Psychological factors that go along with financial wellbeing include: self-control and planning, socialization process and information sources, saving goals, money attitudes and risk tolerance. This project will examine key psychological variables and identify the relationship between them and consumers' financial management behavior. The current research aims to achieve the following objectives: 1. Identify key psychological determinants of household financial behavior. 2. Study the effect of money attitudes, socialization process, saving goals and regulatory orientation on financial behavior, respectively. 3. Examine financial literacy and management behavior among different types of consumers (rural & low-income family, college students, faculty and staff, and family business owner). 4. Investigate the factors affecting financial management behavior within a cross-cultural environment. Expected Outcomes: Examining psychological and behavioral factors that determine a household's financial behavior has implications at the state, regional, and national level. The expected outcomes of this research are: 1. Develop conference presentations and journal papers in the field of family finances, such as Journal of Consumer Affairs, Journal of Family Economic Issues, and Family and Consumer Sciences Research Journal. 2. Seek external funding in the area of financial literacy and education for the population in need. Potential funding agencies include: National Endowments for Financial Education (NEFE), Financial Industry Regulatory Authority (FINRA) Investor Education Foundation, and the Sloan Foundation.  

Project Methods
The multi-state project NC1172: The Complex Nature of Saving: Psychological and Economic Factors team has been working to develop the comprehensive model of savings behavior since 2008. On 2010, the team collected data on how much households save in various forms of saving vehicles and a number of psychological and socio-demographic variables among low and moderate income households in the U.S. This will be the primary source of analyses to better understanding what determines the savings behavior and more broadly, financial management behavior. The questionnaire was modified to measure individual saving goals and personal regulatory orientation. The new version of the survey is being conducted to different set of population: the faculty/staff at higher education institutions across different states. Currently South Dakota and Mississippi have collected over 1,000 members at universities and colleges. Lastly, the NC1172 questionnaire is planned to be implemented in an international setting. Several committee members proposed a cross-cultural study of savings and financial management. The participating countries include Turkey, Malaysia, South Korea, and Singapore. Dr. Cho is responsible for South Korean data collection. The completed study is expected to contribute to the literature on household savings since it is the first study that will examine the savings behaviors and related psychological variables in various countries. In addition to the aforementioned primary data collection, the following datasets will be utilized to examine the savings and other financial behavior among different population. 1. The Survey of Consumer Finances (SCF) reports information about the finances of U.S. families. The information includes the balance sheet, pension, income, and other demographic characteristics of U.S. families. It also has information on the use of financial institutions and savings behavior. The SCF is conducted every three years and outputs important information that is frequently used by a wide array of people and organizations. Participants within the study are randomly selected with the hope that an economically representative population is shown through the families. Typically the sample size is 4,500 families, with oversampled responses from higher-asset households. 2. The New Immigrant Survey (NIS) is a multi-cohort prospective-retrospective panel study of new legal immigrants to the United States. Four institutional settings - RAND, Princeton University, New York University, and Yale University collaborated for this research project.

Progress 10/15/12 to 09/30/17

Outputs
Target Audience:Personnel Involved in Financial Education - We are targeting professionals who work toeducatethe public about personal financial management, including student loan decision making, personal saving, retirement saving, and financing housing. College Students and EmergingAdults - this project involves college students and emerging adults who need solid financial management skills but are lacking in the knowledge or skills to make an informed decisions about loans, savings, and general financial practices. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?Throughout the duration of this Hatch project, three graduate students were provided the opportunity for training and professional development. They were Jennifer Jara-Rabara (2012-2014, M.S. student in Journalism and Mass Communication), Julia DeCook (2014-2016, M.S. student in Journalism and Mass Communication), and Wei Gu (2016-2017, M.S. student in Sociology). They providedresearch assistance to this project at various stages. In general, they conducted literature search, summarizing specific findings, data management, and interpretingstatistical findings in words. All of these students had an opportunity to present research at national conferences as a co-presenter with the PI (Dr. Cho). Dr. Cho also provided mentorship to the students and served on two of the three students'thesis committees. Two students have continued theirresearch endeavors and now pursuing PhD degrees in their respective fields of study (one in Journalism, the other in sociology). How have the results been disseminated to communities of interest?Beyond the peer-reviewed journal publications and presentations at national and international conferences, the results of this project have been shared with broader public through media and local group presentations. This project and the PI's career experience were shared withcollege students outside of the PI's institution(South Dakota State University), including College of Saint Benedict & Saint Johns Universityin Minnesota, Duksung Women's University and Korea Univerisyin South Korea, where students were introduced current knowledge and research activities on the personal finance topic, along with the professional/career-related information in the field of personal financial management. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? There has beenan increasing concern over lack of financial well-being among Americans today. This project involved gathering current knowledge through literature, collecting primary data and analyzing secondary data, and disseminating the knowledge about the psychological and behavioral determinants of household financial behavior over the five-year span. As a result of this project, an increased knowledge about individual personalities and cultural differences that affect savings and other financial management behaviors among various sub-populations, including college students, emerging adults, and university employees. Goal 1. Identify key psychological determinants of household financial behavior (100% accomplished). This goal was accomplished and reported on in the previous progress report. We found that risk tolerance level, subjective financial knowledge, and debt concerns were positively associated with repeated accessto alternative financial services, while financial confidence was negatively associated with multiple accessto the alternative financial services. Goal 2. Study the effect of money attitudes, socialization process, saving goals and regulatory orientation on financial behavior, respectively (100% accomplished). We found that individuals with higher levels of distrust and lower levels of anxiety tend to engage in more recommended financial management behaviors. Financial socialization process through child-parent money discussions and through interaction with financial planners were found effective infinancial management behaviors. Through a cross-cultural survey study involving college students, differences inregulatory orientationby culture (Americansversus South Koreans) were observed in that American students exhibited higher level of promotion and prevention than Korean counterparts. This in turn has an impact on the financial capabilities and confidence level. These findingswerepresented at national and international academic conferences, as well as published in peer-reviewed journals. Goal 3. Examine financial literacy and management behavior among different types of consumers (rural & low-income family, college students, faculty and staff, and family business owner) (100% accomplished). Investigations on rural, low-income families and family business owners' financial management behavior have been completed. Survey data were collected to explore financial management behavior of college students and faculty and staff. We identified key predictors of savings behavior among low-to moderate-income families, including money attitudes, risk tolerance level, and financial socialization. A survey of SDSU faculty and staff indicated that younger, higher-incomer respondents engaged in more responsible financial management behaviors. Lastly, financial considerations (i.e., asset structure and number of jobs held) were found to be significant predictors of family business owners' succession decisions.These results were presented at national and internationalconferences and published in peer-reviewed journals. Goal 4. Investigate the factors affecting financial management behavior within a cross-cultural environment (100% accomplished). The cross-cultural survey data were collected in order to comparecollege students' financial management behavior from Catholic University in South Korea and South Dakota State University. We found that current financial status and financial stress negatively affected American students' financial confidence, while these factors were non-significant in explaining Korean students level of confidence about finance. The positive effect of financial literacy and self-efficacy on financial confidence were shared by both samples. The results of this study were presented in June 2017 at the Annual Conference of the Consumer Policy and Education in Seoul, Korea and won the best poster award.

Publications

• Type: Conference Papers and Presentations Status: Published Year Published: 2016 Citation: Cho, S. H., Johnson, C. L., Kiss, D. E., ONeill, B. M., Mountain, T., & Gutter, M. (2016). Symposium: Student Loan Qualitative and Quantitative Data: A Methodological Concern. Annual Conference of the American Council on Consumer Interests, June 8-10, Crystal City, VA.
• Type: Conference Papers and Presentations Status: Published Year Published: 2016 Citation: Kiss, D. E., ONeill, B., Evans, D.E., and Cho, S.H. (2016). Does Borrowing for College Make Sense? Implications from a Mixed-Methods Research Study. Annual Conference of the Family Economics Resource Management Association. March 11-12. New Orleans, LA.
• Type: Conference Papers and Presentations Status: Published Year Published: 2015 Citation: Cho, S. H., & DeCook, J. R. (2015). Millennials Social Media Use and Financial Literacy: A Literature Review. Annual Conference of the Korean Society of Consumer Policy and Education. June 5. Seoul, S. Korea
• Type: Conference Papers and Presentations Status: Published Year Published: 2015 Citation: Cho, S. H., & DeCook, J. R. (2015). Effect of Social Media on Spending Habits among Millennials. Annual Conference of the American Council on Consumer Interests. May 20-22. Clearwater, FL
• Type: Conference Papers and Presentations Status: Published Year Published: 2014 Citation: Cho, S. H., Yeo, J., Wounded-Head, L., and Johnson, C. (2014). Alternative Borrowing Behavior among Emerging Adults. Annual Conference of the Association of Financial Counseling, Planning, and Education. November 19-21. Bellevue, WA
• Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Jara-Rabara, J., & Cho, S. H. (2013). Communicating Personal Finance: What College Freshmen Want. Annual Conference of the American Council on Consumer Interests. April 10-12. Portland, OR
• Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Brown, J., & Cho, S. H. (2013). Financial Literacy and Brand Preference among College Students. Annual Conference of the American Council on Consumer Interests. April 10-12. Portland, OR
• Type: Conference Papers and Presentations Status: Published Year Published: 2012 Citation: Yeo, J., Saboe-Wounded Head, L., and Cho, S. H. (2012). Role of Knowledge and Risk Tolerance in Young Adults Financial Planning Behavior. Annual Conference of the Association of Financial Counseling, Planning, and Education. November 14-16. St. Louis, MO
• Type: Conference Papers and Presentations Status: Published Year Published: 2012 Citation: Griesdorn, T. S., DeVaney, S. A., Lown, J., Cho, S. H., Evans, D. (2012). Financial Risk Tolerance and Savings Behavior. Annual Conference of the Academy of Financial Services. October 1-2. San Antonio, TX
• Type: Journal Articles Status: Published Year Published: 2016 Citation: Johnson, C. L., Gutter, M. S., Xu, Y., Cho, S. H., & DeVaney, S. (2016). Perceived value of college as an investment in human and social capital: Views of Generations X and Y. Family and Consumer Sciences Research Journal, 45(2), 193-207.
• Type: Conference Papers and Presentations Status: Published Year Published: 2017 Citation: Cho, S. H., & Gu, W. (2017). Student Loan, Individual Difference, and Financial Anxiety: A cross-cultural comparison. ACCI, April 21-23, Albuquerque, NM
• Type: Conference Papers and Presentations Status: Published Year Published: 2017 Citation: Cho, S. H., & Kim, K. (2017). Financial Capability and Financial Confidence among Korean and American College Students. Korean Society of Consumer Policy and Education Annual Conference, June 9, Seoul, South Korea
• Type: Journal Articles Status: Published Year Published: 2016 Citation: Cho, S. H., Mountain, T. P., Porto, N., Kiss, D. E., Gutter, M., & Griesdorn, T. (2016). Experimental design to understand the student loan decision: A methodological note. Family and Consumer Sciences Research Journal, 45(1), 65-76.
• Type: Journal Articles Status: Published Year Published: 2015 Citation: Cho, S. H., Xu, Y., and Kiss, D. E. (2015). Understanding student loan decisions: A literature review. Family and Consumer Sciences Research Journal, 43(3), 229-243. doi: 10.1111/fcsr.12099
• Type: Journal Articles Status: Published Year Published: 2015 Citation: 4. Cho, S. H., Chang, K.-L., Yeo, J., Saboe-Wounded Head, L., Zastrow, M., Zdorovtsov, C., Skjonsberg, L., and Stluka, S. (2015). Comparison of fruit and vegetable consumption among Native and non-Native American populations in rural communities. International Journal of Consumer Studies, 39(1), 67-73. doi: 10.1111/ijcs.12153
• Type: Journal Articles Status: Published Year Published: 2014 Citation: Cho, S. H., Loibl, C., Geistfeld, L. V., and Haugtvedt, C. (2014). Motivation for emergency and retirement saving: An examination of Regulatory Focus Theory. International Journal of Consumer Studies, 38(6), 701-711.
• Type: Journal Articles Status: Published Year Published: 2014 Citation: Griesdorn, T. S., Lown, J. M., DeVaney, S., Cho, S-H., & Evans, D. A. (2014). Association between behavioral life-cycle constructs and risk tolerance of low-to-moderate-income households. Journal of Financial Counseling and Planning, 25(1), 27-39.
• Type: Journal Articles Status: Published Year Published: 2013 Citation: Cho, S. H., Yeo, J., and Saboe-Wounded Head, L. (2013). Role of knowledge and risk tolerance in young adults financial planning behavior. Consumer Policy and Education Review, 9(3), 1-19.

Progress 10/01/15 to 09/30/16

Outputs
Target Audience:Personnel involved in Financial Education-- We are targeting professionals who work toeducatethe public about personal financial management, including studentloandecisionmaking, personal saving, retirement saving, and financing housing. These professionals are most likely to benefit from knowledge generated by this project, especially for identifying the biases and tendencies in financial decision making. Extension professionals could use the factsheets generated by this projecton student loan behavior trends in disseminating the knowledge and educating the families and students who are affected by student loan. Research community-- We are specifically targeting researchers in the area of behavioral economics and family economics/personal finance. With increased interests in behavioral economics in family finances, we believe that the results of our project will contributeto the collective knowledge in this area of research. These individuals are targeted through peer-reviewed articles, presentations at professional, academic meetings, and through webinars. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?This project allowed the following gratduate student training in social science research. Wei Gu. M.S. student. entire reporting period. Learned skills in survey development and implementation. Helped with data collection of the US-Korea college studentist financial management behavior survey. Entered raw data and generatedtwo data sets - college student consumption and financial behavior data and international faculty job satisfaction data. Analyzed the descriptive results and group differences. This project provided the student with knowledge of the human capital theory, especially in looking at health status as human capital explaining gender wage gap between rural and urban areas (thesis topic). How have the results been disseminated to communities of interest?The results of this project weredisseminated to the research and academic community via one peer-reviewed manuscript publication, three conference presentations, and one workshop. The PI presented to the research community twice (American Association of Family and Consuemr Sciences, American Council on Consumer Interests, and Family Economics Resource Management Association). The paper that the PI co-authored appeared in Family and Consumer Sciences Research Journal. What do you plan to do during the next reporting period to accomplish the goals?Goal 1.Identify psychological determinants of household financial behavior. We plan to publish a peer-reviewed manuscript describing the effect of internal, situational, and behavioral factors onalternative borrowing behavior among emerging adults. The manuscript was submitted to Journal of Financial Counseling and Planning. Goal 2.Study the effects of money attitudes, socialization, saving goals and regulatory orientation on financial behavior. We plan to analyze the College Student Financial Management Behavior data to examine the role of regulatory orientationand socialization on their financial behavior. The results of the study will be presented at aconference forthe American Council on Consumer Interests in April2017. The manuscript will be submitted by mid-2017 to a peer-reviewed journal. Goal 3. Examine financial literacy and management behavior among different types of consumers. The manuscript examining generational differences in college education perception will be published in the Family and Consumer Sciences Research Journal. We will continueour analysis of the international faculty job satisfaction survey and prepare two manuscripts to be submitted to journals in the Organizational Health and Career Psychology field. Goal 4. Investigate the factors affecting financial management behavior within a cross-cultural environment. The US-Korea College Student Consumption and Financial Behavior data will be continously analyzed. Differences in financial literacy, anxiety, social comparison and future expecations among two populations will be examined to better understand cross-cultural differences in financial behavior. We plan to publish twopeer-reviewed manuscripts in national/international journals.

Impacts
What was accomplished under these goals? Goal 1. Identify psychological determinants of household financial behavior (90% accomplished). We analyzed the 2012 National Financial Capability Study to examine determinants of the access to alternative financial services, such as payday loan, auto title loan, advance tax loan, pawn shop, or rent-to-own purchases.We found that risk tolerance level, subjective financial knowledge, and debt concernwere positively associated with multiple access tothe alternative financial servicesamong emerging adults, while financial confidence wasnegatively associated with the repeated AFS access among emerging adults. The results of this study werepresented at a professionalconference (in Nov2014) and weresubmitted fora peer-reviewed publication. Goal 2. Study the effects of money attitudes, socialization, saving goals and regulatory orientation on financial behavior (80% accomplished). A cross-culturalsurvey on college students' financial management behavior was created and administered in Korea and in the US (SDSU) in 2016. Regulatory orientation was found to explain financial anxiety of college students differently, where presention orientation were positively related to financial anxiety among American college students, not Korean students. The results of this study wereaccepted for poster presentation at the 2017 annual conference of the American Council on Consumer Interests in April. Goal 3. Examine financial literacy and management behavior among different types of consumers (60% accomplished) We identifiedthe generational differences in perception of college value, using the NC 2172 data set on Student Loan Experimental Survey (publication dateDec. 2016). Additionally, I contributed to the development and implementationof a faculty job satisfaction survey at SDSU. Several financial management questions were asked to international and domestic faculty and the data are currently being analyzed. The findings of this research will be presented at aconference in early 2017, and twomanuscripts will be submitted for peer-reviewed publication in 2017. Goal 4. Investigate the factors affecting financial management behavior within a cross-cultural environment (60% accomplished). A cross-cultural survey on college studentfinancial management behavior was created and administered in Korea and in the US (SDSU). The preliminary results were shared at a local community meeting in spring 2016. Compared to Koreancollege students, US collegestudents had more debt and financial stress, but at the same time were more optimistic about their economic future. The findings of this research will be presented at aconference in early 2017, and a manuscript is being preparedfor peer-reviewed publication.

Publications

• Type: Journal Articles Status: Published Year Published: 2016 Citation: Cho, S. H., Mountain, T. P., Porto, N., Kiss, D. E., Gutter, M., & Griesdorn, T. (2016). Experimental Design to Understand the Student Loan Decision: A Methodological Note. Family and Consumer Sciences Research Journal, 45(1), 65-76.
• Type: Conference Papers and Presentations Status: Published Year Published: 2016 Citation: Kiss, D. E., ONeill, B., Evans, D.E., and Cho, S.H. (2016). Does Borrowing for College Make Sense? Implications from a Mixed-Methods Research Study. Annual Conference of the Family Economics Resource Management Association. March 11-12. New Orleans, LA.
• Type: Conference Papers and Presentations Status: Published Year Published: 2016 Citation: Cho, S. H., Johnson, C. L., Kiss, D. E., ONeill, B. M., Mountain, T., & Gutter, M. (2016). Symposium: Student Loan Qualitative and Quantitative Data: A Methodological Concern. Annual Conference of the American Council on Consumer Interests, June 8-10, Crystal City, VA.
• Type: Conference Papers and Presentations Status: Published Year Published: 2016 Citation: Cho, S. H., & Saboe-Wounded Head, L. (2016). SDSU Financial Education Day: How to successfully implement a financial education event on a college campus. American Association of Family and Consumer Sciences annual conference, June 22-25, Bellevue, WA

Progress 10/01/14 to 09/30/15

Outputs
Target Audience:This research project is designed to develop a better understanding of financil decision making and strategies to improve financial well-being of individuals andfamilies. The target audiences for this research include financial education professionals and consumers. During the FY15, the project focused on the student debt decision making from household level. Therefore, the target is students and parents who are affected by student loan. Specifically, those who consider taking out loans, those who are currently accruing the debt, and those who are paying for student loan debt for themselves or others. The results of studies related to student loan decision making would benefit the consumers (students and parents) and policymakers who are affected by the borrowing behavior. The product that was produced during this period was a literature review article on the determinants and consequences of student loan borrowing behavior. This effort is expected to reach a broad spectrum of professionals in acamemia and extension by informing the compiled knowledge on the borrowing for education. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?This project allowed me to work with colleagues who are experts in personal financial decision making. The sub-committee work and regular meetings have provided me to improve leadership and teamwork skills in research. Also, by reviewing literature on student loan borrowing behavior I have developed an organization and effective research collaboration skills. How have the results been disseminated to communities of interest?The results of the student loan literature review have been shared with the colleagues and leadership in the department and the college of Education and Human Sciences at South Dakota State University. Additionally, the knowledge gained by this effort was shared in the Student Debt Task Force work at the University Level. What do you plan to do during the next reporting period to accomplish the goals?Continue analyzing the Student Loan Experiment Data, and write and submit threemanuscripts with the sub-committe members (on methodology, general paper, and cohort effect), andshare the results in academic conferences at national and international level. Formulatehousing and retirement decision making research questions with colleagues, identify data materials, and plan research processwith these two topics.

Impacts
What was accomplished under these goals? With the completed data collection with the experimentally designed survey in theFall of 2014, five different research projects were generated and writing groups were formed. In addition, twoarticlesthat reviewed theliterature on financial decision making werepublished; oneon the student loan decision and another on housing decision making of millennials.

Publications

• Type: Journal Articles Status: Published Year Published: 2015 Citation: Cho, S. H., Xu, Y., and Kiss, D. E. (2015). Understanding Student Loan Decisions: A Literature Review. Family and Consumer Sciences Research Journal, 43(3), 229-243. doi: 10.1111/fcsr.12099
• Type: Journal Articles Status: Published Year Published: 2015 Citation: Cho, S. H., Chang, K.-L., Yeo, J., Saboe-Wounded Head, L., Zastrow, M., Zdorovtsov, C., Skjonsberg, L., and Stluka, S. (2015). Comparison of Fruit and Vegetable Consumption among Native and Non-Native American Populations in Rural Communities. International Journal of Consumer Studies, 39, 67-73. doi: 10.1111/ijcs.12153
• Type: Journal Articles Status: Published Year Published: 2014 Citation: Cho, S. H., Loibl, C., Geistfeld, L. V., and Haugtvedt, C. (2014). Motivation for emergency and retirement saving: An examination of Regulatory Focus Theory. International Journal of Consumer Studies, 38(6), 701-711.
• Type: Conference Papers and Presentations Status: Published Year Published: 2015 Citation: Cho, S. H., & DeCook, J. R. (2015). Effect of Social Media on Spending Habits among Millennials. Annual Conference of the American Council on Consumer Interests. May 20-22. Clearwater, FL

Progress 10/01/13 to 09/30/14

Outputs
Target Audience: This research project is designed to develop a better understanding of financial decision making and strategies to improve financial well-being. The target audiences for this research include financial education professionals and consumers. During the FY14, the project focused on the student debt decision making from household level. Therefore, the target is students and parents who are affected by student loan. Specifically, those who consider taking out loans, those who are currently accrueing the debt, and those who are paying for the debt. The results of studies related to student loan decision making would benefit the consumers (students and parents)and policymakers who are affected by the loan borrowing. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? This project allowed me to work with colleagues who are experts in personal financial decision making. The sub-committee work and regular meetingshave provided me to improve leadership and teamwork skills in research. The involvement with this project allowed me to connect with David Rogofsky at Social Security Administration and learn about about American Life Panel. How have the results been disseminated to communities of interest? The results of the student loan literature reviewwill be shared with the South Dakota State University student debt task force, which was embarked in January 2015. What do you plan to do during the next reporting period to accomplish the goals? Analyze the experimental survey data, write an article and submit to a peer-reviewed journal.

Impacts
What was accomplished under these goals? Incollaboration with researchers at Kansas State University, University ofFlorida, University of Georgia,and University of the Incarnate Word,we have collectedasurvey with experimetal componentvia online.Datawas collectedin thefall 2014. The team compiled a comprehensive review of the research literature on student loan decision making. A manuscriptwas submitted to and acceptedfor the Family and Consumer Sciences Research Journal.

Publications

• Type: Journal Articles Status: Published Year Published: 2014 Citation: Griesdorn, T. S., Lown, J. M., DeVaney, S., Cho, S-H., & Evans, D. A. (2014). Association between behavioral life-cycle constructs and risk tolerance of low-to-moderate-income households. Journal of Financial Counseling and Planning, 25(1), 27-39.

Progress 10/15/12 to 09/30/13

Outputs
Target Audience: This project investigated the psychological explanations for consumers' financial decision making. Low to moderate income households' risk tolerance level and how it is related to the behavioral economics concepts were studied. Also, emerging adults' various financial planning behaviors as they relate to knowledge and risk tolerance was investigated. Researchers in consumer economics and consumer psychology were the target audience for the research findings. In addition, the results of the research could be useful in developing education programs targeting young consumers to improve their financial planning behavior. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? I participated in the 2013 Annual Conference for the American Council on Consumer Interests in Portland, Oregon (April, 2013) to present my research findings. One of the presentations was a result of collaborative work with a graduate research assistant. In developing the paper, I provided a training opportunity for her including survey development, analyzing data, and making a presentation material. In addition, I organized and participated in the annual multi-state meeting held in Annapolis, Maryland (August, 2013). I was instrumental in the delivery of a web conference with a consumer psychology researcher from the University of Toronto (Dr. Dilip Soman) on the topic of experimental design. How have the results been disseminated to communities of interest? Results from the research project have been disseminated in the form of peer-reviewed journal aritlces in the Family and Consumer Sciences Research Journal, Journal of Financial Counseling and Planning, and Journal of Consumer Policy and Education. A national webinar was held on Feburary 25th in which the highlights of the research were presented to a diverse audience of practitioners, researchers, and educators. Lastly, research findings on the savings behavior among low to moderate income households and financial planning behavior among young adults were covered at the SDSU Agricultural Experiment Station 2013 Annual Report. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? A Change in Knowledge: This project attempted to examine financial and economic behavior among the vulnerable population such as low to moderate income households and young adults. The data that were collected included a variety of psychological measures such as money attitudes, sociallization, and risk tolerance. The findings indicated that risk tolerance is associated with self-control, mental accounting, and framing. Another publication examined young adults' financial planning behavior from budgeting, to retirement needs calculation and credit management. Using a data from National Financial Capability Study, risk tolerance level and financial knowledge of emerging adults were found associated with engaging in a financial planning behavior. When specifically examined, risk tolerance level was positively associated with investment behavior. Objective financial knowledge was positively associated with whether or not one has a retirement plan. Subjective financial knowledge was positively connected to possessing an emergency fund. By understanding determinants of financial behavior among the vulnerable population, we could develop better strategies to improve financial well-being of South Dakotans.

Publications

• Type: Journal Articles Status: Published Year Published: 2013 Citation: Park, S., Yoon, H. J., Cho, S. H., and Haugtvedt, C. P. (2013). Assessing the provision of nutritional information on quick service restaurant menu item choices for college students. Journal of Foodservice Business Research, 16(4), 329-346.
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2013 Citation: Jara-Rabara, J., & Cho, S. H. (2013). Communicating Personal Finance: What College Freshmen Want. Annual Conference of the American Council on Consumer Interests. April 10-12. Portland, OR
• Type: Conference Papers and Presentations Status: Accepted Year Published: 2013 Citation: Brown, J., & Cho, S. H. (2013). Financial Literacy and Brand Preference among College Students. Annual Conference of the American Council on Consumer Interests. April 10-12. Portland, OR
• Type: Journal Articles Status: Accepted Year Published: 2014 Citation: Griesdorn, T., Lown, J., DeVaney, S., Cho, S. H. and Evans, D. (in press). Risk tolerance and behavioral life cycle theory. Journal of Financial Counseling and Planning, 25(1)
• Type: Journal Articles Status: Published Year Published: 2013 Citation: Cho, S. H., Yeo, J., and Saboe-Wounded Head, L. (2013). Role of knowledge and risk tolerance in young adults financial planning behavior. Consumer Policy and Education Review, 9(3), 1-19.