Factors affecting UK household financial risk-taking and their implications for consumption of financial investments

Kim, A, Vanheusden, FJ ORCID: https://orcid.org/0000-0003-2369-6189 and Rashid, M, 2025. Factors affecting UK household financial risk-taking and their implications for consumption of financial investments. International Review of Economics and Finance, 103: 104567. ISSN 1059-0560

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Abstract

Household financial risk-taking (FRT) diminishes during economic downturns or periods characterized by high cost of living to preserve household wealth, economic safety and wellbeing, leading to significant reductions in consumption. Yet the exact mechanisms behind these changes in FRT are not understood. The study investigates FRT within households residing in the UK using a structured questionnaire survey on 215 families. The study is designed around the theory of planned behavior. Data are analyzed using confirmatory factor analysis (CFA) and Structural Equation Modeling. Results are validated using bootstrapping. Multiple regression analysis and mean difference tests are conducted to examine sensitivity of FRT to various demographic and social factors. The results indicate profound influence of attitude, subjective norms, and perceived behavioral control, alongside culture, on FRT practices within UK households. We forward that FRT is intentional, utilized in situations where it is deemed safe for the family and eschewed by families with a higher level of behavioral control. Results also imply an urgent need to address effectively the key aspects pertaining to household wellbeing, gender diversity, and power sharing among partners within the family.

Item Type:	Journal article
Publication Title:	International Review of Economics and Finance
Creators:	Kim, A., Vanheusden, F.J. and Rashid, M.
Publisher:	Elsevier
Date:	October 2025
Volume:	103
ISSN:	1059-0560
Identifiers:	Number Type 10.1016/j.iref.2025.104567 DOI S1059056025007300 Publisher Item Identifier 2490563 Other
Rights:	This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
Divisions:	Schools > School of Science and Technology
Record created by:	Jonathan Gallacher
Date Added:	02 Sep 2025 13:22
Last Modified:	02 Sep 2025 13:22
URI:	https://irep.ntu.ac.uk/id/eprint/54276

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