An empirical model of overspending derived from the life cycle savings model was estimated for home owners and renters. Age, income stability indicators, family structure, marital status and race appear to have different impacts on the models, implying that the life cycle model may not equally characterize home owners and renters. Financial professionals need to be aware of the impact of the housing tenure decision on overall spending and savings. Practitioners can use these results to encourage clients to reconsider home purchases in light of expected changes in spending patterns that may impede a client’s progress toward other financial goals. Key words: overspending, housing tenure, life cycle savings model, consumer expenditure survey.

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