The life cycle theory and permanent income theory in household financial sustainability

Siti Nur Aqilah Ab Wahab and Minah Japang and Lee, Hock Ann and Nur Shahirah Azman (2024) The life cycle theory and permanent income theory in household financial sustainability.

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Abstract

This article explains the interplay between the Life Cycle Theory (LCT) and Permanent Income Theory (PIT) in the domain of household financial sustainability. By integrating these two prominent frameworks, it offers a comprehensive approach to understanding how households manage their financial activities across their lifetimes. Considering the criticisms of both consumption theories, the article aims to provide valuable insights into distinct aspects of household personal sustainable finance, particularly in the areas of debt management and repayment, assessing sustainable consumption behavior, household expenditure and investment patterns, as well as the utilization and reduction of debt. Integrating these two theories presents a more holistic understanding of household financial sustainability.

Item Type:	Proceedings
Keyword:	Life Cycle Theory, Permanent Income Theory, Household Financial Sustainability, Household Financial Literacy
Subjects:	H Social Sciences > HC Economic history and conditions > HC10-1085 Economic history and conditions H Social Sciences > HG Finance > HG1-9999 Finance > HG179 Personal finance
Department:	FACULTY > Labuan Faculty of International Finance
Depositing User:	SITI AZIZAH BINTI IDRIS -
Date Deposited:	28 Apr 2025 14:55
Last Modified:	28 Apr 2025 14:55
URI:	https://eprints.ums.edu.my/id/eprint/43604

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