Household Finance

Household Finance

SIF163 Household Finance

Project Manager: Mike Gallmeyer

BoV Approved: Summer 2019

The purpose of this proposal is to build research infrastructure in the field of household finance.

Project Dates: 12/01/2019 – 11/30/2022

Funding Awarded: $219,585

Executive Summary

How do people spend their money and why do they make the choices to buy certain things, save, etc.? Those are the questions a team from McIntire is seeking to answer. Their goal is to help students and others understand their choices and examine how they spend their money. They hope that their research will help both current students and generations to come, and will help establish UVA as a leader in household finance research.

Current Status: Active

Progress

The PAC performed the first annual review for this award in December 2020 and was pleased with the progress that the project team has made with achieving the milestones and metrics. The Global Financial Crisis and COVID-19 highlighted the importance of understanding better how household balance sheets, through both borrowing and investing, are related to the larger economy, and also whether financial institutions provide the right mix of investing and credit options to households. The project team had the opportunity to pivot in terms of the datasets they had the opportunity to acquire, and is in the process of purchasing this data and planning research projects. They developed a course on real estate finance over summer 2020 that will be offered in spring 2022. The crux of this research program in household finance is to build infrastructure for researchers on Grounds to answer questions related to this growing research area and to provide recommendations to policymakers.