Self-Regulation

Abstract

This is another key chapter, just as chapter 10. Self-regulation is a basic concept for financial behavior. Self-control and self-efficacy are required to perform the continuous process of self-regulation. Self-control is adhering to executing financial plans, intentions, and commitments. Self-efficacy is the competence of executing courses of action required to deal with prospective situations. Are people able to control and regulate themselves not to be impulsive, not to spend too much, save enough, also for retirement, avoid problematic debt, insure their possessions and risks, pay their taxes on time, and not become a victim of financial fraud? Delay of gratification, lack of willpower, and lack of self-control are the major psychological obstacles for successful self-regulation. Formulated in positive terms: do people select the right financial and life goals, and are people consistent and persistent in their goal achievement, and resistent to temptations?