The Ant and the Grasshopper: Understanding Personal Saving Orientation

Asset building and wealth creation lead to sound financial health. At the heart of this process is the role of saving. If we can understand factors resulting in good saving behaviors, we can develop strategies that facilitate such actions. Using Kuhl’s (1994) theory of action orientation, we explored the importance of the savings “action” in personal savings. Given the repetitive nature of putting money into savings, the habitual nature is also crucial in understanding how individuals incorporate personal savings in their everyday life. Using four studies, we developed and tested a measurement scale to capture different facets of personal savings orientation.