Locus of control and saving: The role of saving motives

Using data from a longitudinal survey representative of the Dutch population, we analyze relationship between saving and locus control, study underlying mechanisms. Locus control measures extent to which individuals perceive their life outcomes be determined by own actions, as opposed external factors. Those who believe in future turn out save more, both at extensive (decision save) intensive margins (amount saved). We investigate mechanisms behind this relationship. implement mediation analysis examine role motives, distinguishing specific non-specific purposes. The effect is direct, while internal indirect, largely driven (non-specific) motives.