Follow Us:
Friday, May 27, 2022

This is the reason why it’s hard to save money

People who find it hard to save money are often impatient and do not think about the long-term consequences of spending money.

By: Indo-Asian News Service | New York |
April 2, 2015 12:24:59 pm
money-main People who find it hard to save money are often impatient and do not think about the long-term consequences of spending money (Source: Thinkstock Images)

 

People who find it hard to save money are often impatient and do not think about the long-term consequences of spending money, suggests a new research.

In the study published in the Journal of Consumer Research, the researchers examined how consumers spend money when they think about the future.

“We have known that being aware of the benefits of not spending and being patient contribute to savings, but our research finds that one or the other is not enough,” said study authors Daniel Bartels and Oleg Urminsky from the University of Chicago Booth School of Business.

Best of Express Premium
What makes KuCoin P2P Trading Platform a Good Choice To Buy Crypto?Premium
Airtel Demonstrates Immersive Video Entertainment On 5G; Recreates Kapi...Premium
Is It A Good Idea To Keep One Account For All Your Financial Transactions?Premium
Touching The Sky : SIMS, Pune Alumni On A Path To Make A DifferencePremium

For the study, consumers were asked to choose between a more expensive product and a cheaper alternative in six different product categories.

When consumers first ranked the categories by importance (prompting them to consider other uses for their money) and read about their future selves (emphasising that their identity was stable over time), they spent less on the categories they had ranked as least important.

Making consumers think about and value the future did not simply make people stingy. It caused them to spend more wisely — to make better financial decisions by focusing their spending only on what was really important to them.

“For consumers to be motivated to save money, they need to both consider the future financial consequences and care enough about their financial future when spending money,” the researchers noted.

Latest Comment
View All Comments
Post Comment
Read Comments

For all the latest Lifestyle News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard

Featured Stories

'Rajiv Kapoor said I may be Raj Kapoor's son but I have nothing': Dalip T...
Shah Rukh Khan reveals wife Gauri Khan's rules inside their home Mannat: ...
Shah Rukh Khan says he has TVs worth Rs 30-40 lakh in Mannat, fan reacts,...
After Express report, IAS officer Sanjeev Khirwar transferred to Ladakh, ...
Two Cannes red carpet looks, one gorgeous Deepika Padukone. No surprise t...
0 Comment(s) *
* The moderation of comments is automated and not cleared manually by indianexpress.com.
Advertisement
Advertisement
Advertisement
X