?
CONSUMER SAVINGS-RELATED FINANCIAL DECISION-MAKING THROUGH ECONOMIC-PSYCHOLOGICAL THEORIES
Consumer savings-related financial decision-making plays a crucial role in individual well-being and the broader economy. This paper examines the significance of consumer financial decisions, particularly in Russia, where economic volatility and low saving rates have led to financial instability and reliance on social welfare. Despite efforts to stimulate long-term savings, many Russians struggle to accumulate sufficient resources for retirement or emergencies. This article aims to provide a systematic review of existing literature on the theories influencing consumer long-term savings-related financial decision-making, focusing on psychological and economic determinants. Economic theories on consumer long-term saving behaviour include the life-cycle theory and discounting models. Economic-psychological theories on consumer long-term saving behaviour consider approach by G. Katona as well as prospect theory. Consumer socialization theories on consumer long-term saving behaviour describes A. Bandura’s theory to the social learning and the role of parents and social environment in learning kids to save. Psychological behavioral theories on consumer long-term saving behaviour are represented by the behavioral life-cycle theory. The theoretical analysis reveals several factors that may predict long-term consumer savings decisions, categorized into subjective economic, socio-demographic, psychological, and socio-cultural factors. Understanding these factors can help policymakers and individuals make informed decisions to improve long-term financial well-being.