© 2016

Understanding Consumer Financial Behavior

Money Management in an Age of Financial Illiteracy

  • Authors

Table of contents

  1. Front Matter
    Pages i-xvi
  2. Introduction

    1. W. Fred van Raaij
      Pages 1-10
  3. Part I

    1. Front Matter
      Pages 11-11
    2. W. Fred van Raaij
      Pages 13-32
    3. W. Fred van Raaij
      Pages 33-44
    4. W. Fred van Raaij
      Pages 45-61
    5. W. Fred van Raaij
      Pages 63-75
    6. W. Fred van Raaij
      Pages 77-87
    7. W. Fred van Raaij
      Pages 89-101
    8. W. Fred van Raaij
      Pages 103-111
    9. W. Fred van Raaij
      Pages 113-126
    10. W. Fred van Raaij
      Pages 127-141
  4. Part II

    1. Front Matter
      Pages 143-143
    2. W. Fred van Raaij
      Pages 145-157
    3. W. Fred van Raaij
      Pages 159-171
    4. W. Fred van Raaij
      Pages 173-184
    5. W. Fred van Raaij
      Pages 185-194
    6. W. Fred van Raaij
      Pages 195-210
    7. W. Fred van Raaij
      Pages 227-243

About this book


Government policies, marketing campaigns of banks, insurance companies, and other financial institutions, and consumers' protective actions all depend on assumptions about consumer financial behavior. Unfortunately, many consumers have no or little knowledge of budgeting, financial products, and financial planning. It is therefore important that organizations and market authorities know why consumers spend, borrow, insure, invest, and save for their retirement - or why they do not. Understanding Consumer Financial Behavior provides a systemic economic and behavioral approach to the way people handle their finances. It discusses the different types of financial behaviors consumers may engage in and explores the psychological explanations for their behavior and choices. This exciting new book is essential reading for scholars of marketing, finance, and management; financial professionals; and consumer policy makers.


Consumer behavior financial behavior money management spending financial literacy financial illiteracy budgeting saving debt investment financial fraud risk time preference decision-making self-regulation

About the authors

W. Fred van Raaij is Emeritus Professor of Economic Psychology at Tilburg University, the Netherlands. He has worked at Tilburg University and Erasmus University of Rotterdam in the Netherlands, and at the University of Illinois at Urbana-Champaign, USA. His research interests are consumer behavior, environmental concerns and energy saving, the financial behavior of consumers and investors, and the effects of marketing communications.

Bibliographic information

Industry Sectors
Chemical Manufacturing
Finance, Business & Banking
Consumer Packaged Goods


“W. Fred van Raaij seeks to describe the foundations of our financial actions and, in turn, provide direction toward improved public policies, better regulation for consumer protection, and more trustworthy financial practices. … For psychologists, the book offers a handy guide to how economists think about the determinants of financial behaviors … . I also see van Raaij’s book as a supplemental text for graduate courses in finance and as highly recommended reading for professional financial advisers.” (Len Tashman, PsycCRITIQUES, Vol. 61 (46), November, 2016)