Xiao, 1996

Xiao, J. J. (1996). Effects of family income and life cycle stages on financial asset ownership. Financial Counseling and Planning, 7, 21-30.

Effects of Family Income and Life Cycle Stages On Financial Asset Ownership

Jing J. Xiao,(1) University of Rhode Island

This study investigated the effects of income and life cycle variables on the ownership of eleven
household held financial assets, using the 1989 Survey of Consumer Finance. Logistic regression
indicated that life cycle variables, such as household head’s age, marital status, employment status,
and child’s presence, influenced ownership of 11 financial assets. The results can be used to
construct various family life cycle scenarios to improve educational and business programs in
financial planning and counseling.

KEY WORDS: saving, individual investors, family life cycle, financial assets

1. Jing J. Xiao is an Associate Professor, Consumer Affairs Program, College of Human Science and Service, University of Rhode Island, Kingston,
RI 02881. Phone: (401) 874-4036. Fax: (401) 874-2581. E-mail: xiao@uriacc.uri.edu

Acknowledgments: Helpful comments from Suzanne Lindamood, Cara Miller, Carole Prather, Carmen Steggell, session participants of the 1995
AFCPE meeting, and three anonymous referees on the earlier versions of the paper are highly appreciated. This study is supported by Certified
Financial Planner Board of Standards and University of Rhode Island Research Council.

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