The Consumption Consequences of Couples Pooling Finances

When couples decide to share their lives, they must also decide how to pool their finances. In this article, we ask: Does the type of bank account from which one spends (joint vs. separate) affect the type of products one chooses to buy (utilitarian vs. hedonic)? Real‐world evidence from analyzing bank transaction records (study 5), as well as data collected from experiments in the field (studies 1 and 2) and lab (studies 3 and 4), converge to support the hypothesis that couple members who spend from a joint bank account are more likely to choose utilitarian (vs. hedonic) products, than those who spend from a separate bank account. We find that these different spending patterns are driven by an increased need to justify spending to one's partner that is experienced when money is pooled together. If a hedonic product becomes easier to justify (study 4), the effect of account type on spending patterns disappears. These findings have important theoretical and practical implications for better understanding financial decision‐making within romantic couples.     

The beneficial effects of prosocial spending on happiness: work hard,make money,and spend it on others?

Previous research has shown that the way people spend their money is as important to happiness as how much money people earn. Specifically, it has been shown that spending money on others contributes more to an individual’s happiness than spending money on oneself. In the present study, we investigated this effect and examined the role of the money’s origin. Students were randomly assigned either to spend a small amount of money on themselves or to spend the money on others. Moreover, half of the participants received the money as a wage, whereas the other half received the money as a windfall. The results replicated previous research indicating that prosocial spenders report greater happiness than do selfish spenders. However, the happiness effect was unaffected by the source of the money (i.e. wage vs. windfall). Implications for well-being and happiness are discussed.     

Misery is not miserly: sad and self-focused individuals spend more

Misery is not miserly: Sadness increases the amount of money that decision makers give up to acquire a commodity. The present research investigated when and why the misery-is-not-miserly effect occurs. Drawing on William James's concept of the material self, we tested a model specifying relationships among sadness, self-focus, and the amount of money that decision makers spend. Consistent with our Jamesian hypothesis, results demonstrated that the misery-is-not-miserly effect occurs only when self-focus is high. That is, self-focus moderates the effect of sadness on spending. Moreover, mediational analyses revealed that, at sufficiently high levels, self-focus mediates (explains) the relationship between sadness and spending. Because the study used real commodities and real money, the results hold implications for everyday decisions, as well as implications for the development of theory. For example, economic theories of spending may benefit from incorporating psychological theories -- specifically, theories of emotion and the self -- into their models.     

Spendthrifts and Tightwads in Childhood: Feelings about Spending Predict Children's Financial Decision Making

Adults differ in the extent to which they find spending money to be distressing; “tightwads” find spending money painful, and “spendthrifts” do not find spending painful enough. This affective dimension has been reliably measured in adults and predicts a variety of important financial behaviors and outcomes (e.g., saving behavior and credit scores). Although children's financial behavior has also received attention, feelings about spending have not been studied in children, as they have in adults. We measured the spendthrift–tightwad (ST–TW) construct in children for the first time, with a sample of 5‐ to 10‐year‐old children (N = 225). Children across the entire age range were able to reliably report on their affective responses to spending and saving, and children's ST–TW scores were related to parent reports of children's temperament and financial behavior. Further, children's ST–TW scores were predictive of whether they chose to save or spend money in the lab, even after controlling for age and how much they liked the offered items. Our novel findings—that children's feelings about spending and saving can be measured from an early age and relate to their behavior with money—are discussed with regard to theoretical and practical implications. Copyright © 2017 John Wiley & Sons, Ltd.     

亲社会支出对主观幸福感的影响及其作用机制

亲社会支出是指把钱以送礼或慈善捐款的形式花在别人身上, 而不是自己身上。它不仅可以给接受者带来好处, 还可以对给予者的幸福产生积极影响。亲社会支出对幸福感的影响主要体现在亲社会对象及影响效果两个方面, 其边界条件包括了外部与内部因素。通过自我决定理论、社会规范理论、进化理论及社会交换理论, 可以进一步解释亲社会支出影响主观幸福感的内在机制。未来研究需要检验亲社会支出与幸福感之间的边界条件、探究亲社会支出的长期积极效应及提高亲社会支出研究的生态效度。     

Happiness Runs in a Circular Motion: Evidence for a Positive Feedback Loop between Prosocial Spending and Happiness

We examine whether a positive feedback loop exists between spending money on others (i.e. prosocial spending) and happiness. Participants recalled a previous purchase made for either themselves or someone else and then reported their happiness. Afterward, participants chose whether to spend a monetary windfall on themselves or someone else. Participants assigned to recall a purchase made for someone else reported feeling significantly happier immediately after this recollection; most importantly, the happier participants felt, the more likely they were to choose to spend a windfall on someone else in the near future. Thus, by providing initial evidence for a positive feedback loop between prosocial spending and well-being, these data offer one potential path to sustainable happiness: prosocial spending increases happiness which in turn encourages prosocial spending.     

How accounts shape lending decisions through fostering perceived trustworthiness

We examine the roles of social accounts in influencing lenders’ decisions about loaning money to borrowers. Using field data and a laboratory experiment, we show that lenders will lend money depending on the accounts borrowers tell. In Study 1, field data from a peer-to-peer lending website reveal that two-account combinations (explanation–acknowledgment and explanation–denial) increase the likelihood of favorable lending decisions. A laboratory study helps explain the important role of accounts by unpacking the process of perceived borrower trustworthiness in lending decisions. A final field study assessing the performance of loans 2 years after origination shows that accounts, despite having a positive effect on the loan decision process, negatively predict loan performance. Collectively, the three studies show that accounts facilitate economic exchanges between unacquainted transaction partners because of their role in increasing perceived trustworthiness, but that ironically, accounts can negatively relate to loan performance.     

“电子钱包”让人花钱更多？——手机支付的心理账户效应

为探究手机支付使用者消费增加的现象及其心理账户效应,使用计算机程序对114名被试进行了三项模拟购物实验。实验发现：（1）手机支付组被试的商品消费次数和金额都显著高于现金支付组被试,且这种差异体现在功能型商品的消费上。（2）手机支付时被试不会倾向于对大金额的消费进行控制,对大钱和小钱的花费不存在显著差异。（3）手机支付时收到红包的被试消费次数和金额显著高于账户常规收入的被试,且更多用于享乐型消费。总的来看,手机支付减弱了对大额金钱和意外收入的消费控制,非现金支付让消费者花钱更多。     

Buying Life Experiences for the “Right” Reasons: A Validation of the Motivations for Experiential Buying Scale

Although numerous studies have demonstrated the hedonic benefits of spending money on life experiences instead of material possessions, there has been no attempt to determine how different motivations for experiential consumption relate to psychological need satisfaction and well-being. Across five studies (N = 931), guided by self-determination theory, we developed a reliable and valid measure of motivation for experiential consumption—the Motivation for Experiential Buying Scale—to test these relations. Those who spend money on life experience for autonomous reasons (e.g., “because they are an integral part of my life”) report more autonomy, competence, relatedness, flourishing, and vitality; however, those who spend money on life experiences for controlled (e.g., “for the recognition I’ll get from others”) or amotivated reasons (e.g., “I don’t really know”) reported less autonomy, competence, and relatedness. These results demonstrated that the benefits of experiential consumption depend on why one buys life experiences.     

Monopoly money: the effect of payment coupling and form on spending behavior

This article examines consumer spending as a function of payment mode both when the modes differ in terms of payment coupling (association between purchase decision and actual parting of money) and physical form as well as when the modes differ only in terms of form. Study 1 demonstrates that consumers are willing to spend more when a credit card logo is present versus absent. Study 2 shows that the credit card effect can be attenuated when people estimate their expenses using a decomposition strategy (vs. a holistic one). Noting that credit card and cash payments differ in terms of payment coupling and form, Studies 3 and 4 examine consumer spending when the payment mode differs only in physical form. Study 3 demonstrates that consumers spend more when they are spending scrip (a form of stored value certificate) versus cash of the same face value. Study 4 shows that the difference in spending across payment modes (cash and gift certificates) is attenuated by altering the salience of parting with money through contextual manipulations of the differences between cash and gift certificates.     

Different goals,different predictions: Accuracy and bias in financial planning for events and time periods

Personal spending predictions are sometimes optimistically biased because predictors focus on their current savings goals. The present studies explored the role of savings goals in prediction by comparing spending predictions for time periods and discrete events. Contemplating a concrete event may elicit specific goals that compete with a focus on savings goals. Consistent with this hypothesis, Studies 1 and 2 revealed that participants relied less on savings goals, and were less biased, when predicting event spending rather than weekly spending. Study 3 demonstrated the causal impact of focusing on goals that compete with savings goals: Participants induced to focus on competing goals predicted to spend more money next week, and relied less on savings goals to generate their predictions.     

Factors associated with adolescent saving and spending patterns

This study examined the saving and spending behaviors of 1,619 employed high school seniors from over 1,000 private and public schools across the United States. Students were categorized as savers, necessity spenders, and discretionary spenders based on their responses to the question, "How do you spend the money that you earn?" Associations of student spending and saving patterns with individual and family factors were analyzed. Student savers were from families who saved and planned money use. Students who spent more for necessities were from families with fewer resources and greater financial difficulties. Discretionary spenders felt that money was important and were from families with higher income and socioeconomic status. Findings are discussed in light of the importance of families as socializing agents of their children.     

时间定价对亲社会行为的影响

时间定价就是将金钱价格赋予时间之上,用金钱来衡量时间的价值。已有研究表明,时间定价激活时间经济价值最大化的心理定势,使个体更看重时间的经济回报,花更少的时间帮助他人。但是,时间定价对亲社会行为的影响可能并不仅仅局限于时间利他。本研究通过三个实验,除了考察时间定价对时间利他的影响外,还进一步探讨时间定价对金钱利他的影响。结果显示,时间定价不仅影响个体的时间利他行为,也削弱了金钱利他行为。这表明,时间定价所激活的经济效用心理定势不仅仅局限于时间这一种资源的效用。     

Effects of Gender on Costly Punishment

Women are often believed to be more cooperative and less egoistic than men. In the present study, we examined whether people punish women for failing to live up to these benevolent gender stereotypes. Participants played a prisoner's dilemma game with female and male partners who either cooperated or defected. Participants were offered a costly punishment option. They could spend money to decrease the payment of their partners. In Experiment 1, participants spent more money to punish the defection of female in comparison to male partners, but this effect of partner gender on punishment was indirect rather than direct: Participants were more likely to cooperate with female partners than with male partners, which gave them more opportunity for moralistic punishment. In Experiments 2 and 3, we examined the effects of the participants' own gender on cooperation and punishment of female and male partners. Female participants cooperated more with female partners than with male partners while male participants treated female and male partners equally. We conclude that the effect of facial gender on punishment are indirect rather than direct. The results also showed that women, in contrast to men, tended to make decisions that can be considered more social and less rational from an economic point of view, consistent with social‐role theory and evolutionary accounts. Copyright © 2017 John Wiley & Sons, Ltd.     

Money Imbued With Essence: How We Preserve,Invest, and Spend Inherited Money

The unique nature of inherited money is reflected in financial decisions concerning such bequests. A legacy originates in somber circumstances and bears the distinctive characteristics of the deceased. In four experiments and a survey among inheritors we found that people tended to preserve the inheritance; participants were reluctant to spend the legacy on hedonic goods or risk it by investing in the stock market. Inheritors with a close relationship with the deceased were more likely to seek uses congenial to the personality and the values of the departed. The results are discussed in terms of magical thinking and coping with bereavement.     

Africa and the prospects of deliberative democracy

Preoccupation with multiparty aggregative democracy in Africa has produced superficial forms of political/electoral choice-making by subjects that deepen pre-existing ethnic and primordial cleavages. This is because the principles of the multiparty system presuppose that decision-making through voting should be the result of a mere aggregation of pre-existing, fixed preferences. To this kind of decision-making, I propose deliberative democracy as a supplementary approach. My reason is that deliberation, beyond mere voting, should be central to decision- making and that, for a decision to be legitimate, it must be preceded by deliberation, not merely the aggregation of pre-existing fixed preferences. I agree with arguments that when adequate justifications are made for claims/demands/conclusions, deliber- ation has the potential to have a salutary effect on people's opinions, transform/ evolve preferences, better inform judgments/voting, lead to increasingly ‘common good’ decisions, have moral educative power, place more burden of account-giving on public officers, and furnish subjects/losers/outvoted with justifications for collec- tively binding decisions. I argue that a deliberative turn in politics in Africa will have a mitigating effect on tribal and money politics.     

Bonus of rebate?: the impact of income framing on spending and saving

All income increases a person's absolute wealth, but consumption decisions may be based more heavily on perceived changes in wealth. Change is computed by comparing a current state with a former state, and we predicted that people would be more likely to spend income framed as a gain from a current wealth state than income framed as a return to a prior state. Four experiments confirmed this prediction on people's memory for spending of a government tax rebate (Experiment 1), on unobtrusive self‐report measures of spending an unexpected windfall (Experiments 2 and 3), and on actual spending on items for sale in a laboratory experiment (Experiment 4). These results can be explained, at least in part, by the reference points implied in the framing of income (follow‐ups to Experiments 1 and 4). Discussion focuses on implications for the consumption of other commodities, assessments of risk, and government tax policies. Copyright © 2006 John Wiley & Sons, Ltd.     

Saving for your future self: The role of imaginary experiences

Despite increased longevity, many people fail to save the funds necessary to support their retirement. In an attempt both to elucidate and remedy this failing, research exploring the “future-self continuity” hypothesis has revealed that temporal discounting is decreased and saving increased when connections between one’s current and future self are strengthened. Here, we explored the possibility that a basic component of mental imagery – spatial visual perspective – may be an important determinant of people’s decisions to spend now or save for the future. The results of two experiments supported this prediction. Rates of saving were enhanced when a distant-future event was generated from a third-person vs. first-person vantage point, an effect that was mediated by visual bodily awareness during mental imagery.     

Framing, Uncertainty, and Hostile Communications in a Crisis Experiment

During times of crisis, do cognitive processes shape leaders’ procurement decisions in predictable ways? Drawing on psychological literature, we propose four factors that may have a substantial influence on how much money leaders engaged in ongoing disputes allocate to their military: (1) striving for superiority versus striving for parity in military resources; (2) uncertainty regarding the characteristics of weapons systems; (3) ambiguity regarding the overall capacities of weapons systems; and (4) the tone of messages that adversaries send to one another. The effects of these factors are investigated using a laboratory simulation that combines both experimental and quasi‐experimental elements. The results indicate that striving for superiority has a significant effect on defense spending, as does the tone of an opponent’s message. By way of contrast, neither uncertainty nor ambiguity exerts a statistically discernable impact on the level of defense spending.     

Inventor perseverance after being told to quit: the role of cognitive biases

We find that approximately one third (29%) of independent inventors continue to spend money and 51% continue to spend time on projects after receiving highly diagnostic advice to cease effort. Using survey data from actual inventors, this paper studies the role of overconfidence, optimism, and the sunk‐cost bias in these decisions. We find that inventors are more overconfident and optimistic than the general population. We also find that optimism and past expenditures increased perseverance after being told to quit, while overconfidence in judgment ability had no effect. After being told to quit, optimists spend 166% more than pessimists and those having already spent, for example, $10 000 spend another $10 000. Copyright © 2007 John Wiley & Sons, Ltd.