Category: Financial Security for All

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Behavior Change Among Savings Program Participants

Loibl, C., Grinstein-Weiss, M., Zhan, M. & Red Bird, B. (2010). More than a penny saved: Long-term changes in behavior among savings program participants. Journal of Consumer Affairs, 44, (1): 98-126. http://dx.doi.org/10.1111/j.1745-6606.2010.01159.x.

Brief Description: The study explored the long-term effectiveness of low-income individuals’ participation in a federally funded matched savings program. To collect data, a survey was mailed to former program participants in Ohio, and compared with the responses of a general low-income population sample. The results document that …

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If I Am Taking the Earned Income Tax Credit, Can I Also Claim the Child Tax Credit on My Income Taxes?

If you qualify for both credits, you can take both credits. You may also be able to claim the Child and Dependent Care Credit. Each of these tax credits has its own rules.

See IRS Publication 17 for general information on filing your taxes, Publication 596 for the Earned Income Tax Credit, Publication 972 for the Child Tax Credit, and Publication 503 for Child and Dependent Care Credit for information on who can deduct each type of credit. To receive …

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Renters’ preparation for retirement

James, R. N., & Sharpe, D. L. (2007). Is time running out? Savings and investments of renters nearing retirement age. Financial Counseling and Planning, 18(2), 61-75.

Brief Description: This study explored how renters age 45-64 prepare for retirement without any home equity. Compared with otherwise similar homeowners, renters nearing retirement were less likely to contribute to retirement savings plans (e.g. 401(k)s and IRAs), invested less when they did contribute, and favored short-term convenience accounts (e.g., checking and savings) with …

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How Can I Pick a Good Personal Finance Book?

First, do a search of financial book titles by key words of interest (e.g., mutual funds, bankruptcy, life insurance) through an online book merchant such as Amazon.com. Read the description of the book’s contents and reviews by readers.

Some online merchants will also allow you to view the book covers, table of contents, and even a sample chapter. Of course, you can also walk into a book store and check out financial books in person.

Look at the publication date …

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Determinants of Asset Allocation Strategies for Retirement Saving

Morrin, M., Broniarczyk, S. & Inman, J. J. (2008), Saving for Retirement: The Effects of Fund Assortment Size and Investor Knowledge on Asset Allocation Strategies, The Journal of Consumer Affairs, 42(2), 206-222.

Brief Description: We conducted a decision simulation among 211 adults whose task was to invest in a hypothetical 401(k) retirement plan. We varied the number of mutual funds (3 or 21) offered for investment and assessed investor knowledge with a self-report measure. The results indicate that less …

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Do You Have to Pay Income Tax on a Cash Gift?

Generally, cash or property that you receive as a gift or inheritance is not included in your income. Recipients of gifts do not need to declare them on their income tax return, regardless of the amount.

However, if a cash gift later produces income, such as dividends and capital gains, that income will be taxable and you will receive a 1099 form to indicate the taxable amount.

Donors can give cash gifts up to a certain amount each year without …

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A Framework for Promoting Retirement Savings

Wiener, J. & Doescher, T. (2008). A Framework for Promoting Retirement Savings, The Journal of Consumer Affairs, 42 (2), 137-164.

Brief description: This paper identifies the constructs that influence an individual’s intention to save for retirement. It discusses how and when these factors can be changed by an agent trying to induce an individual to enroll in a retirement plan, increase his or her contribution to a plan, or purchase a particular retirement product. A broad array of psychological theories …

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Impact of Health on Financial Security of Older Americans

Kim, H. & Lyons, A. C. (2008). No Pain, No Strain: Impact of Health on the Financial Security of Older Americans. The Journal of Consumer Affairs; Spring 2008, 42(1), 9-36.

Brief Description: This study investigated the impact that new and existing health problems have on the financial strain of older Americans. Health problems significantly increased the likelihood of financial strain for older individuals, but the effects varied by the measure of financial strain used and how health status is …

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Social and Financial Capital Resources Can Lessen Hardships

Parks-Yancy, R., DiTomaso, N. & Post, C. (2007). The mitigating effects of social and financial capital resources on hardships. Journal of Family and Economic Issues, 28(3), 429-448.

Brief Description: Social and financial capital resources include knowing people who can help one obtain a job, offer cash or help defray expenses when layoffs or other hardships occur. These resources differ by gender and class (income/occupational status). This study found that middle class individuals had ample access to social and financial …

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Banking Experience and Individual Development Accounts

Grinstein-Weiss, M., Yeo, Y. H., Despard, M. R., Casalotti, A. M., and Zhan, M. (2010). Does prior banking experience matter? Differences of the banked and unbanked in Individual Development Accounts. Journal of Family and Economic Issues 31, 212-227.

Brief Description: This study compares the saving performance and program participation of participants who owned bank accounts and those who did not prior to program enrollment in 14 Individual Development Account programs. Banked participants were shown to have higher average monthly net …

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