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Planned behavior with saving and borrowing intentions - how do consumers make ends meet?

Author

Listed:
  • Eriksson, Kent

    (Department of Real Estate and Construction Management, Royal Institute of Technology)

  • Hermansson, Cecilia

    (Department of Real Estate and Construction Management, Royal Institute of Technology)

  • Malmström, Malin

    (Luleå University of Technology)

  • Sanctuary, Mark

    (Division of Accounting, finance and changes, Department of Industrial Economics and Management, Indek School, KTH Royal Institute of Technology, Stockholm, Sweden.)

  • Weng, Hsu-Chi

    (Department of Real Estate and Construction Management, Royal Institute of Technology)

Abstract

The ability to make ends meet has long been a critical issue tied to individuals’ financial well-being. This study proposes and analyzes a structural model to explain the antecedents of making ends meet behavior, grounded in the Theory of Planned Behavior. Data were collected through a survey of bank customers from a large Swedish retail bank (N=14,617). Structural equation modeling results reveal that social learning, financial confidence, and risk attitude collectively shape behavioral intentions to save and borrow. Saving intention positively contributes to the ability to make ends meet, while borrowing intentions decreases this likelihood. Additionally, the study finds that financial information received through social surroundings differently affects saving intention and borrowing intention. To account for demographic and socioeconomic factors, group analysis was conducted across gender and income groups to evaluate the model’s applicability. The results show that the proposed antecedents significantly influence making ends meet behavior across these groups, although the magnitude of effects varies. These findings offer valuable insights for public policy and financial institutions, highlighting the behavioral determinants that can enhance individuals’ ability to achieve financial stability.

Suggested Citation

  • Eriksson, Kent & Hermansson, Cecilia & Malmström, Malin & Sanctuary, Mark & Weng, Hsu-Chi, 2025. "Planned behavior with saving and borrowing intentions - how do consumers make ends meet?," Working Paper Series 25/3, Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance.
    • Handle: RePEc:hhs:kthrec:2025_003
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    More about this item

    Keywords

    Theory of Planned Behavior; making ends meet; saving; borrowing; social learning; financial confidence; risk attitude; structural equation modeling;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth

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