We examine household saving in the context of a prescriptive model. Using Survey of Consumer Finances data sets in the 1995-2004 period, 57% of households reported spending less than income. Many effects in the multivariate analysis are consistent with a prescriptive model. We discuss other...

This article describes the current status and trends in the past three decades (1990–2019) of the Journal of Financial Counseling and Planning (JFCP). Since its first issue published in 1990, JFCP has become a major research outlet in consumer finance. The journal publishes cutting-edge,...

Cryptocurrency has been increasingly popular with investors in US financial market. Using the 2018 National Financial Capability Study Investor survey, this study examined the association between investment literacy and cryptocurrency investment. About 13% of investors invested in cryptocurrency...

This study estimates the adequacy of retirement wealth of pre-retirement households using a 1995 national sample of households. Retirement wealth is projected using planned retirement age and portfolio allocation. Retirement needs are estimated from expenditure functions, and 52% of the...

The distinction between subjective and objective risk tolerance is illustrated by expected utility analyses of portfolios. Optimal portfolios were derived for one, 5, and 20 year investment horizons for 6 major financial asset categories. The important aspects of objective risk tolerance are the...

This article uses 69 years of real rates of return for six types of financial assets to find efficient portfolios for saving for college, in terms of mean and minimum accumulations. Small stocks are in every efficient portfolio. For 10 and 15 year time frames, the portfolio that was the safest...

Effects of financial and demographic variables on risk tolerance were estimated for households with an employed respondent in the 1992 Survey of Consumer Finances. Logistic regression analysis showed that female headed households were less likely to be risk tolerant than otherwise similar...

We identify and present original analyses of four methodological issues related to using Survey of Consumer Finances (SCF) datasets and illustrate these issues with recent articles published in this journal. The issues are: recognizing that the respondent is not necessarily the household head,...

This article focuses on the effect of race and ethnicity on financial risk tolerance. Blacks and Hispanics are less likely to be willing to take some financial risk but more likely to be willing to take substantial financial risk than Whites, after controlling for the effects of other variables....

The optimal proportion of a household's investment portfolio that should be in risky assets such as stocks depends on what proportion of total wealth, including human wealth, the investment portfolio represents. This article estimates the total wealth of households in the U.S. Survey of Consumer...