Microsoft Word Ed Horwitz Post Dissertation Fina docx

 Financial Condition  
Financial condition is represented in the financial literacy model (Figure 4.2) as a 
component of other influences. Before individuals engage in retirement planning behaviors, their 
present financial needs are typically addressed. Additionally, keeping track of spending and 
proper budget management has been associated with retirement savings (Lusardi & Mitchell, 
2011). There were several financial condition questions used from the survey that were found to 
influence financial behaviors in historical literature (Seay & Robb, 2013; Lusardi & Mitchell, 
2011). Questions were selected to control for financial economic condition and money 
management factors related to retirement preparedness behaviors. A total of eight questions were 
included for analysis and were asked as follows: 

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1.  Income: What is your household’s approximate annual income, including wages, 
tips, investment income, public assistance, and income from retirement plans, 
etc.? 
2.  Work Status: Which of the following best describes your current employment or 
work status? 
3.  Spending Compared to Income: Over the past year, would you say your 
household’s spending was less than, more than, or about equal to your 
household’s income? Please do not include the purchase of a new house or car, 
or other big investments you may have made. 
4.  Difficulty Covering Expenses: In a typical month, how difficult is it for you to 
cover your expenses and pay all of your bills? 
5.  Emergency Fund: Have you set aside emergency or rainy day funds that would 
cover your expenses for 3 months, in case of sickness, job loss, economic 
downturn, or other emergencies? 
6.  Income Shock: In the past 12 months, have you (or your household) experienced a 
large drop in income which you did not expect?  
7.  Checking Account: Does your household have a checking account? 
8.  Homeownership status: Do you or your spouse/partner currently own your home?