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Savers and borrowers: strategies of personal financial management

Livingstone, Sonia and Lunt, Peter (1993) Savers and borrowers: strategies of personal financial management. Human Relations, 46 (8). pp. 963-985. ISSN 0018-7267

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Identification Number: 10.1177/001872679304600804

Abstract

Saving and borrowing are traditionally and stereotypically thought of as opposites, with different motivations and consequences. Through a questionnaire survey of economic position, practices, and attitudes, the present paper examined the relation between saving and borrowing among British respondents. While saving and borrowing were found to be determined by different economic, social, and psychological factors, they did not describe mutually exclusive strategies of financial management. Saving regularly could also be distinguished from having savings. In all, six strategies were identified (combining saving or not saving, borrowing or not borrowing, and having or not having savings). Each combination was found to have specific discriminating characteristics. Savers and borrowers were found to have different psychological motivations, seeing debt either as a failure or as a normal part of everyday life. Many people retained savings or carried on saving at the same time as having debts: they were found to feel more in control and optimistic about their financial position than those who had debts but no savings. A further group had neither debts nor savings: they adopted an inflexible approach to financial management. Each group of people with different financial management strategies was illustrated by a case study.

Item Type: Article
Official URL: http://journals.sagepub.com/home/hum
Additional Information: © 1993 The Tavistock Institute
Divisions: Media and Communications
Subjects: B Philosophy. Psychology. Religion > BF Psychology
H Social Sciences > HG Finance
Sets: Departments > Media and Communications
Date Deposited: 15 Dec 2016 12:31
Last Modified: 19 Feb 2019 23:26
URI: http://eprints.lse.ac.uk/id/eprint/68633

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