Featured Research

from universities, journals, and other organizations

Wanna save? Keep it simple, says new research

Date:
September 27, 2011
Source:
University of Toronto, Rotman School of Management
Summary:
If one savings goal is a good thing, two or more should be great, right? Not really. Those who want to save are more apt to keep socking money away and more of it too, if they have just one goal in mind, shows work done in multiple countries.

If one savings goal is a good thing, two or more should be great, right? Not really. Those who want to save are more apt to keep socking money away and more of it too, if they have just one goal in mind, shows work done in multiple countries by two researchers at the University of Toronto's Rotman School of Management.

Related Articles


"If you have only one goal it puts you in a more action-oriented mindset and helps you save more," says Min Zhao, an assistant professor of marketing who co-authored the study with marketing professor Dilip Soman. "Too much thinking about which goal is more important keeps people from acting."

The study looked at a range of different research subjects, including modest households in rural India, middle-income Canadian dads, and working professionals living in Hong Kong.

Results consistently showed that a single savings goal worked better than multiple goals. Individual studies also found single goals worked particularly well when it was harder to save. Having multiple goals resulted in people thinking about trade-offs between goals, rather than focusing on implementing their savings plan.

The findings suggest that financial or savings advisors may want to take a different tack with their clients. Banks sometimes advertise a list of reasons to save, but such a message could "backfire" says the study, because that introduces multiple goals, leading to eventual failure in clients' savings plans.

"The most common mistake is to emphasize numerous reasons to save," says Prof. Zhao. "They should revise their approach."

Of course most of us have more than one thing we need to save for, such as retirement, a child's education and funds for a rainy day. In that case, Prof. Zhao suggests finding a way to integrate seemingly competing goals into a single more abstract goal, such as achieving financial independence or flexibility.


Story Source:

The above story is based on materials provided by University of Toronto, Rotman School of Management. Note: Materials may be edited for content and length.


Journal Reference:

  1. Dilip Soman Min Zhao. The Fewer the Better: Number of Goals and Savings Behavior. Journal of Marketing Research, 2011 (in press)

Cite This Page:

University of Toronto, Rotman School of Management. "Wanna save? Keep it simple, says new research." ScienceDaily. ScienceDaily, 27 September 2011. <www.sciencedaily.com/releases/2011/09/110926132016.htm>.
University of Toronto, Rotman School of Management. (2011, September 27). Wanna save? Keep it simple, says new research. ScienceDaily. Retrieved February 1, 2015 from www.sciencedaily.com/releases/2011/09/110926132016.htm
University of Toronto, Rotman School of Management. "Wanna save? Keep it simple, says new research." ScienceDaily. www.sciencedaily.com/releases/2011/09/110926132016.htm (accessed February 1, 2015).

Share This


More From ScienceDaily



More Mind & Brain News

Sunday, February 1, 2015

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

NFL Concussions Down; Still on Parents' Minds

NFL Concussions Down; Still on Parents' Minds

AP (Jan. 30, 2015) The NFL announced this week that the number of game concussions dropped by a quarter over last season. Still, the dangers of the sport still weigh on players, and parents&apos; minds. (Jan. 30) Video provided by AP
Powered by NewsLook.com
Study Shows Newborn Chicks Count From Left to Right Just Like Humans

Study Shows Newborn Chicks Count From Left to Right Just Like Humans

Buzz60 (Jan. 30, 2015) Researchers for the first time identified human&apos;s innate preference for associating low and high numbers with the left and right respectively in another species. Jen Markham (@jenmarkham) explains. Video provided by Buzz60
Powered by NewsLook.com
Best Mood Elevating, Feel Good Shakes & Smoothies

Best Mood Elevating, Feel Good Shakes & Smoothies

Buzz60 (Jan. 30, 2015) You can elevate your mood by having a meal in a glass. Fitness and nutrition expert John Basedow (@JohnBasedow) offers the best &apos;feel good&apos; smoothies and shakes chock full of depression-relieving ingredients...including apples, berries, lemons, cucumbers, papaya, kiwi, spinach, kale, whey protein, matcha, ginger, turmeric and cinnamon. Video provided by Buzz60
Powered by NewsLook.com
Poll Says Firstborn Is Responsible, Youngest Is Funnier

Poll Says Firstborn Is Responsible, Youngest Is Funnier

Newsy (Jan. 30, 2015) According to a poll out of the U.K., eldest siblings feel more responsible and successful than their younger siblings. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Health & Medicine

Mind & Brain

Living & Well

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins