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 December 18, 2014 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 December 18, 2014).

Share This


More From ScienceDaily



More Mind & Brain News

Thursday, December 18, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Yoga Could Be As Beneficial For The Heart As Walking, Biking

Yoga Could Be As Beneficial For The Heart As Walking, Biking

Newsy (Dec. 17, 2014) Yoga can help your weight, blood pressure, cholesterol and heart just as much as biking and walking does, a new study suggests. Video provided by Newsy
Powered by NewsLook.com
1st Responders Trained for Autism Sensitivity

1st Responders Trained for Autism Sensitivity

AP (Dec. 16, 2014) More departments are ordering their first responders to sit in on training sessions that focus on how to more effectively interact with those with autism spectrum disorder (Dec. 16) Video provided by AP
Powered by NewsLook.com
Guys Are Idiots, According To Sarcastic Study

Guys Are Idiots, According To Sarcastic Study

Newsy (Dec. 12, 2014) A study out of Britain suggest men are more idiotic than women based on the rate of accidental deaths and other factors. Video provided by Newsy
Powered by NewsLook.com
Believing in Father Christmas Good for Children's Imaginations

Believing in Father Christmas Good for Children's Imaginations

AFP (Dec. 12, 2014) As the countdown to Christmas gets underway, so too does the Father Christmas conspiracy. But psychologists say that telling our children about Santa, flying reindeer and elves is good for their imaginations. Duration: 01:57 Video provided by AFP
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