Navigation Links
Money Matters
Date:8/15/2008

Studies suggest why some people save while others spend

FRIDAY, Aug. 15 (HealthDay News) -- Can't save money? Spending too much? Both? Don't blame just the economy or old habits.

Psychologists and marketing experts have found that the time frame of your savings goals, plus your sense of well-being and your spending style, could all play a role in your personal cash flow situation.

"Some people think, 'We have no incentive, that's why we don't save,' " said Leona Tam, an assistant professor of marketing at Old Dominion University in Norfolk, Va., who was expected to present her study findings at the American Psychological Association's annual meeting, Aug. 14-17, in Boston.

But Tam has found that the ability to save money has more to do with whether people focus on short-term goals -- planning to save money next month -- rather than long-term goals -- planning to save next year. Those who focus on short-term goals do better, she said.

Tam asked 678 adults to estimate how much they could save in the next month, and then how much they could save in a specific month in the future, or the next year. The participants always saved closer to the estimate -- or even more -- for their next-month goal, and fell short for a specific month in the future.

"Savings are significantly lower for people who estimate higher for a future time frame," she said. "They think they can actually save more in the future," compared to the very near future. "That could explain why most of us don't save enough."

The solution? Set short-term savings goals, Tam said, to close the gap between estimated and actual savings.

A second study scheduled for presentation at the meeting found that your consumer "type" and your sense of well-being affect your spending habits.

In past research, study author Miriam Tatzel, a professor of psychology at Empire State College, State University of New York, found four consumer "types," based on attitudes about money and how materialistic people are. Her new study involved 329 adult college students, on average 38 years old.

"Value Seekers" are materialistic but tight with money, while "Big Spenders" are materialistic and loose with money. "Non-Spenders" are tight with money but not materialistic, while "Experiencers" are loose with money and not materialistic, she wrote.

Tatzel then gathered information about well-being to gauge which types of spenders are happiest. The least happy are Big Spenders, who often have credit-card debt. The happiest are the Experiencers, she said.

The discovery that Experiencers are happiest doesn't surprise Tatzel. "Studies in the literature show that when people reflect on how they spend money, money spent on experiences tends to leave a stronger feeling of being happy than money spent on objects," she said. Spending on travel, workshops or education, for instance, gives a happier feeling than spending on a car for these people.

And a third study found that impulse buying results in either feelings of guilt or shame, and guilt is more productive.

Sunghwan Yi, a professor at the University of Guleph in Ontario, Canada, asked 222 college students how they felt after buying something on impulse. Those who felt guilty used healthy coping techniques, such as making a plan to reduce impulse buying. Those who felt shame used avoidance responses, such as denial, the study found.

More information

For more on how finances can affect your mental well-being, visit the American Psychological Association.



SOURCES: Miriam Tatzel, Ph.D., professor of psychology, Empire State College, State University of New York; Leona Tam, Ph.D., assistant professor of marketing, Old Dominion University, Norfolk, Va.; presentations, American Psychological Association annual meeting, Aug. 14-17, 2008, Boston


'/>"/>
Copyright©2008 ScoutNews,LLC.
All rights reserved

Related medicine news :

1. Photo: Sisters Forgo Birthday Gifts in Effort To Raise Money To Cure Canine Cancer
2. AmeriPlan Offers Affordable Money-Saving Discount Healthcare Programs for the Uninsured and Underinsured
3. Age-old money matters: Positivity in older adults leads to balanced investments
4. New Report: Increasing Mississippis Cigarette Tax Will Reduce Smoking, Save Lives and Save Money
5. CVS/pharmacy Makes It Easier for Consumers to Save Money and Track Spending with Health Savings and Flexible Spending Accounts
6. Volkswagen Partners With Legendary Rock Band The Who To Raise Money for Teenage Cancer Trust Charity
7. Hip replacement improves function, saves money, at any age
8. Economy and Money Top Causes of Stress for Americans
9. Eva Longoria Parker Participates in 5k Run/Walk to Raise Money for Children With Cancer and Offers Support to Univision Talent Fernando Del Rincons Cancer Diagnosis
10. New Latent TB Drug Saves Lives, Money
11. Rifampin: Latent TB treatment saves time money and lives
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:5/26/2017)... MN (PRWEB) , ... May 26, 2017 , ... A ... U.S. states with the healthiest seniors are located in the Midwest. With the average ... more and more people are concerned with both the quality and affordability of where ...
(Date:5/26/2017)... , ... May 26, 2017 , ... After raising nearly ... Top gadget will continue to be available at a discounted crowdfunding price on ... stress wherever they are, I also wanted to bring a fidget toy to the ...
(Date:5/26/2017)... ... May 26, 2017 , ... Dr. Alex Rabinovich, a highly-skilled oral surgeon specializing ... blog post on insurance options. If a Bay Area patient has to search for ... and money. Visiting an in-network provider for a second opinion can ensure a patient ...
(Date:5/26/2017)... , ... May 26, 2017 , ... “Just What Happened in the Garden of Eden”: ... the Garden of Eden” is the creation of published author, Penelope Colt, mother, trader, horse ... family moved to NYC when she was three. At six, they moved to Dayton, ...
(Date:5/24/2017)... ... May 24, 2017 , ... In modern research, success ... appropriate instruments for research and understanding the basic principles that were designed to ... on innovations in stereo microscopy for brightfield and fluorescence typically used in laboratories ...
Breaking Medicine News(10 mins):
(Date:5/4/2017)... May 4, 2017  DarioHealth Corp. (NASDAQ: DRIO), a ... big data solutions, today announced that it is teaming ... STI Technologies Limited to lower diabetes healthcare costs in ... innoviCares card, which is available throughout all provinces and ... will be eligible for additional savings when shopping for ...
(Date:5/3/2017)... 2017 A Catheterization Laboratory is an ... facility. Commonly referred to as cath lab, this ... imaging technology to give physicians visual access to ... spaces, a team of physicians perform life-saving procedures ... intervention, congenital heart defect closure, stenotic heart valves, ...
(Date:5/3/2017)... Pa. , May 3, 2017  West ... in innovative solutions for injectable drug administration, announced ... Scientific Affairs and Technical Services, and Diane ... workshops and offering presentations focused on West,s expertise ... injectable products, as well as providing commentary on ...
Breaking Medicine Technology: