Financial self-regulation

Financial self-regulation includes self-regulation strategies. Such strategies—actions and thoughts promoting financial goals over financial temptations—can intervene at multiple points in the self-regulation process. We discuss financial self-regulation strategies in the context of the process model, highlighting empirically studied strategies shown to increase saving or reduce spending. We then discuss factors linked to strategy effectiveness. Although there is no consensus which specific strategy may be superior, there is evidence suggesting that financial strategies employed ahead of a tempting situation (vs. during the situation), self-generated strategies that fit one's personality, and a wider variety of strategies likely result in more self-regulatory success. We also discuss the limits of financial self-regulation strategies and the circumstances under which strategies may be ineffective.