Behavioral and Psychological Drivers of Sustainable Saving and Financial Resilience among Community Households

Abstract

Sustainable saving behavior and financial capability are critical foundations of household financial resilience, particularly in resource-constrained community settings. This study examined the behavioral and psychological drivers of sustainable saving behavior and financial capability specifically budgeting, saving practices, debt management, and investment behavior and analyzed how these dimensions shape the financial resilience of community households in the Municipality of Tago, Surigao del Sur, Philippines. Anchored in social cognitive theory and behavioral economics, the study integrates structural financial practices with psychological factors such as risk perception, decision fatigue, self-control, and emotional management in financial decision making. A quantitative descriptive research design was employed, involving 300 household financial decision makers selected across barangays. Data were collected through a structured survey instrument measuring financial capability domains and resilience indicators. Findings revealed a structurally imbalanced configuration of financial capability. Households demonstrated strong debt management characterized by prudent borrowing and repayment discipline; however, budgeting systems, institutionalized saving behavior, and investment engagement were weak and underdeveloped. The results indicate that financial decisions are largely defensive and risk-averse, shaped by heightened concern over indebtedness but constrained by limited forward-looking planning, cognitive strain in managing scarce resources, and low confidence in coping with uncertainty. Correspondingly, the overall level of financial resilience was low, with households reporting limited ability to absorb financial shocks, manage unexpected expenses, recover quickly from financial disruptions, or proactively prepare for future risks. The findings confirm that financial resilience does not emerge from isolated financial strengths but from the balanced integration of planning, saving, borrowing, and investing behaviors supported by psychological readiness and institutional access. Sustainable saving behavior and financial capability among community households remain fragmented and insufficient to generate adaptive financial stability. Strengthening budgeting routines, protected savings mechanisms, investment literacy, and psychologically informed financial capability interventions is essential to transform defensive financial practices into comprehensive and sustainable household financial resilience