Applying behavior theories to financial behavior

Document Type

Article

Date of Original Version

12-1-2008

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. © 2008 Springer Science+Business Media, LLC.

Publication Title, e.g., Journal

Handbook of Consumer Finance Research

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