Factors influencing adult savings and investment: Findings from a nationally representative sample

Abstract

This study explored a longitudinal data set of over 5766 adults examining factors that influence adult savings and investment. Data were collected at birth, in childhood (at age 11) and adulthood (at ages 33 and 50 yrs) to examine the effects of family social status, childhood intelligence, adult personality traits, education and occupation, and personal financial assessment on adult savings and investment. Results from structural equation modelling showed that parental social status, educational qualifications and occupational prestige, trait Conscientiousness, personal financial assessment and gender all had significant and direct effects on adult savings and investment, accounting for 26% of the total variance. The strongest predictor of adult savings and investment was their personal subjective financial assessment followed by educational qualifications and current occupational prestige. Limitations and implications are considered.