The role of personal and cultural values on saving behavior: a cross-national analysis
International Journal of Sociology and Social Policy
ISSN: 0144-333X
Article publication date: 15 November 2024
Abstract
Purpose
This study investigates the relationship between human values and saving behavior, focusing on both personal and cultural values.
Design/methodology/approach
The research utilizes data from the seventh wave of the World Values Survey (2017–2020) covering 67,278 respondents across 48 countries and the Hofstede Insights (2024). The study employs principal component analysis to validate the measurement of personal values and multilevel logit regression to explore the associations between personal (individual level) and cultural (country level) values and saving behavior.
Findings
The findings, grounded in the functional theory of values, indicate that individuals with personal values oriented toward individual goals and survival needs are more likely to save money, whereas those with values centered on social orientation and thriving needs are less inclined to save. On a cultural level, individualistic societies tend to save more, while countries with high levels of uncertainty avoidance are associated with lower saving behavior.
Practical implications
This study provides further evidence that human values are important components of household savings behavior. Policymakers and stakeholders interested in fostering saving behavior should be aware of the role played by personal and cultural values when designing impactful policies and interventions. This process might involve encouraging survival traits and reducing economic uncertainty.
Originality/value
This study provides a comprehensive analysis of how personal and cultural values shape saving behavior across different societies. It contributes to the literature by highlighting the interplay between individual and societal factors in financial decision-making.
Keywords
Acknowledgements
This study was financed in part by the Coordenação de Aperfeiçoamento de Pessoal de Nível Superior – Brazil (CAPES) – Finance Code 001.
Conflict of interest: Luiz Cruz declares no conflicts of interest. Luiz Cruz has received a research grant from the Coordenação de Aperfeiçoamento de Pessoal de Nível Superior – Brazil (CAPES) to develop the research in the USA with other authors. All other authors declare that they have no conflicts of interest.
Citation
Cruz, L.A., Peñaloza, V., Porto, N. and An, T. (2024), "The role of personal and cultural values on saving behavior: a cross-national analysis", International Journal of Sociology and Social Policy, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJSSP-08-2024-0395
Publisher
:Emerald Publishing Limited
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