Behavioural Characteristics and Financial Distress

Table 1: Distribution of samples by Degree of Struggle (%)

UK Ireland Total

a constant struggle, while 1.6 per cent in the Irish sample and 2.2 per cent of the British
sample report that they are falling behind with some of their bills and credit commitments.
Only 1 per cent of the British sample report that they have fallen behind with many of
their bills and credit commitments, while the corresponding figure for Ireland is less than
1 per cent.

3.1.2 Questions on Behavioural Characteristics

The Financial Capability Survey differs from a number of other household surveys that
collect financial information in asking questions about behavioural characteristics, such as
respondents’ level of self control, time preference and whether or not they are well organised
with their money.

Self-Control and Time Preference

Time preference in financial decision-making is generally thought to capture an individual’s
choice of whether to spend their money now, or delay gratification for later, for example by
saving, (Walker, 1996). Similarly, self-control is thought to be an important influence on a
person’s financial decisions. Several studies have found that a preference for the future and
self-control have a positive impact on saving and financial ‘coping’ (Groenland and Nyhus,
1994; Lea et al., 1995). In the Financial Capability Survey, respondents were asked their
degree of agreement or disagreement with the following statements:

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