Researchers sought the factors that would explain why some people have a greater propensity to save than others.

To find an answer, they used a longstanding survey of Dutch households with extensive information on not only demographics but also wealth and savings.

The researchers then added their own survey questions to get the necessary data. In total, more than 1,200 households were surveyed.

Here is a synopsis of the findings:

• Age: At the individual level, the willingness to save generally decreases as a person gets older until age 60, when savings patterns flatten and then increase.
• Economic Hardship Early in Life: Savings rates are the highest among the Dutch post–World War II generation, who grew up in an economically difficult period.
• Financial Savings Behavior in Youth: Those whose savings habits were stimulated by parents or grandparents tend to be better savers throughout their lifetime. Working during youth also leaves a lasting effect on savings behavior later in life. The study’s authors opine, “One can teach children the value of money in a way that affects decision making later in life.”
• Interest in Financial News: This interest has greater relevance for explaining savings behavior than the level of education and numeric ability.
• Household Administration: Though the term is not defined, respondents who described themselves as keeping a tight household are more willing to postpone current spending to save for future needs.
• A Sense of Control: A person who believes they can influence their financial outcomes is more willing to set aside money now for future spending. The “personal locus of control” also has a greater impact than what generation a person belongs to. It may also be more important than financial literacy in developing strong savings habits.
• Optimism Regarding the Economy: Those whose are optimistic about future economic conditions tend to be more willing to postpone current consumption, whereas those who are pessimistic are more likely to spend now.

Source: “Household Financial Planning and Savings Behavior,” Dirk Brounen, Kees G. Koedijk and Rachel A.J. Pownall, Journal of International Money and Finance accepted manuscript.

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