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Handbook of Consumer Finance Research pp 69–81Cite as

Applying Behavior Theories to Financial Behavior

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Abstract

This chapter discusses how two behavior theories can be applied to financial behavior research. The theory of planned behavior (TPB) is a motivational theory designed to predict and understand human behavior. The transtheoretical model of behavior change (TTM) is a multi-stage theory designed to guide people toward positive actions stage by stage. This chapter first discusses how to define financial behavior and then reviews the two theories and their applications to financial behavior. Finally, it discusses issues relevant to future research to better understand and predict financial behavior and to assist consumers to develop positive financial behaviors that improve their quality of life.

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Author information

Authors and Affiliations

  1. Department of Human Development and Family Studies, University of Rhode Island, Transition Center, Kingston, RI 02881, USA

    Jing Jian Xiao

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  1. Jing Jian Xiao
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Editors and Affiliations

  1. University of Rhode Island Transition Center, 2 Lower College Rd., Kingston, RI 02881, USA

    Jing Jian Xiao Ph.D.

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© 2008 Springer Science+Business Media, LLC

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Xiao, J.J. (2008). Applying Behavior Theories to Financial Behavior. In: Xiao, J.J. (eds) Handbook of Consumer Finance Research. Springer, New York, NY. https://doi.org/10.1007/978-0-387-75734-6_5

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