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.

"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 April 20, 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 April 20, 2014).

Share This



More Mind & Brain News

Sunday, April 20, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Study On Artists' Brain Shows They're 'Structurally Unique'

Study On Artists' Brain Shows They're 'Structurally Unique'

Newsy (Apr. 17, 2014) The brains of artists aren't really left-brain or right-brain, but rather have extra neural matter in visual and motor control areas. Video provided by Newsy
Powered by NewsLook.com
Is Apathy A Sign Of A Shrinking Brain?

Is Apathy A Sign Of A Shrinking Brain?

Newsy (Apr. 17, 2014) A recent study links apathetic feelings to a smaller brain. Researchers say the results indicate a need for apathy screening for at-risk seniors. Video provided by Newsy
Powered by NewsLook.com
Are School Dress Codes Too Strict?

Are School Dress Codes Too Strict?

AP (Apr. 16, 2014) Pushing the limits on style and self-expression is a rite of passage for teens and even younger kids. How far should schools go with their dress codes? The courts have sided with schools in an era when school safety is paramount. (April 16) Video provided by AP
Powered by NewsLook.com
Could Even Casual Marijuana Use Alter Your Brain?

Could Even Casual Marijuana Use Alter Your Brain?

Newsy (Apr. 16, 2014) A new study conducted by researchers at Northwestern and Harvard suggests even casual marijuana use can alter your brain. 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:
from the past week

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