The Role of Behavioral Economic Factors on Saving Decision: The Case of Gen-Y in Thailand
DOI:
https://doi.org/10.55164/ecbajournal.v16i3.265763Keywords:
Self-Control, Mental Accounting, Saving, Generation YAbstract
Thailand has consistently faced the problem of insufficient savings, which can be partly attributed to behavioral economics. This study employs the behavioral life cycle theory to explore how behavioral economic factors, namely self-control and mental accounting, impact the saving decision among young adults in Thailand. The study surveyed 367 Thai Gen-Y individuals and used Tobit regression to estimate the effects of both mainstream and behavioral economic factors on their saving behavior and intentions. The findings indicate that behavioral economic factors affect Thai Gen-Y's saving decisions differently. While mental accounting only influences saving intentions, self-control significantly increases both saving intentions and behaviors. Based on these findings, nudging policies that address self-control problems, such as implementing automatic saving programs, may be effective in improving the saving habits of Thai Gen-Y.
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