Jayathirtha, C. & Fox, J. J. (1996). Home ownership and the decision to overspend. Financial Counseling and Planning, 7, pp. 97-106.
Home Ownership And The Decision To OverspendChandrika Jayathirtha,(1) The Ohio State University
Jonathan J. Fox,(2) The Ohio State University
An empirical model of overspending derived from the life cycle savings model was estimated for
home owners and renters. Age, income stability indicators, family structure, marital status and race
appear to have different impacts in the models, implying that the life cycle model may not equally
characterize home owners and renters. Financial professionals need to be aware of the impact of
the housing tenure decision on overall spending and savings. Practitioners can use these results to
encourage clients to reconsider home purchases in light of expected changes in spending patterns
that may impede a clients progress toward other financial goals.
KEY WORDS: Overspending, housing tenure, life cycle savings model, consumer expenditure survey
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1. Chandrika Jayathirtha, Ph.D. candidate, Consumer Sciences Department, The Ohio State University, 1787 Neil Ave., Columbus, OH
43210-1290. Phone: 614-292-4389. Fax: 614-292-7536. E-mail:email@example.com
2. Jonathan J. Fox, Assistant Professor, Consumer Sciences Department, The Ohio State University, 1787 Neil Ave., Columbus, OH
43210-1290. Phone: 614-292-4389. Fax: 614-292-7536. E-mail:firstname.lastname@example.org