Featured Research

from universities, journals, and other organizations

Money in the bank: Why does feeling powerful help people save more?

Date:
June 25, 2014
Source:
Journal of Consumer Research, Inc.
Summary:
In a materialistic culture, saving money is a challenge many of us face long before our retirement years. While many people think education, upbringing, and self-control are major contributors to a person’s savings habits, a new study reveals that people save more when they feel powerful.

In a materialistic culture, saving money is a challenge many of us face long before our retirement years. While many people think education, upbringing, and self-control are major contributors to a person’s savings habits, a new study in the Journal of Consumer Research reveals that people save more when they feel powerful.

Related Articles


“We were interested in knowing whether the decision to save or not save money was affected by how someone was feeling during the time they were making a savings decision,” write authors Emily N. Garbinsky (Stanford University), Anne-Kathrin Klesse (Tilburg University), and Jennifer Aaker (Stanford University).

Across five studies, the authors found that when made to feel powerful, the amount of money someone is willing to save for the future increases. In one study, some participants were made to feel powerful and were asked to sit in a tall chair. Other participants were made to feel powerless and were asked to sit on a low ottoman. All participants were asked to respond to some questions and were then given the option to either collect their study compensation in cash or to put it in a lab savings account. Results showed that the individuals who sat in the tall chair saved more of their money than those who sat on the low ottoman.

Another study revealed that making people feel powerful only increases saving when they are told they will be saving money to keep it or when they are not given a specific reason to save. In other words, making people feel powerful only motivates them to save money when the purpose of saving is to accumulate financial resources, and not when the purpose of saving is to spend those resources later.

Companies offering financial services like retirement planning can use these results to help their customers prepare for the future, including the creation of more effective intervention strategies. Consumers can also use the results to better understand their own personal relationships with power and money.

“People who feel powerful use saving money as a means to maintain their current state of power. When saving no longer affords individuals the opportunity to maintain power, the effect of power on saving disappears,” the authors conclude.


Story Source:

The above story is based on materials provided by Journal of Consumer Research, Inc.. Note: Materials may be edited for content and length.


Journal Reference:

  1. Emily N. Garbinsky, Anne-Kathrin Klesse, and Jennifer Aaker. Money in the Bank: Feeling Powerful Increases Saving. Journal of Consumer Research, October 2014

Cite This Page:

Journal of Consumer Research, Inc.. "Money in the bank: Why does feeling powerful help people save more?." ScienceDaily. ScienceDaily, 25 June 2014. <www.sciencedaily.com/releases/2014/06/140625132112.htm>.
Journal of Consumer Research, Inc.. (2014, June 25). Money in the bank: Why does feeling powerful help people save more?. ScienceDaily. Retrieved January 27, 2015 from www.sciencedaily.com/releases/2014/06/140625132112.htm
Journal of Consumer Research, Inc.. "Money in the bank: Why does feeling powerful help people save more?." ScienceDaily. www.sciencedaily.com/releases/2014/06/140625132112.htm (accessed January 27, 2015).

Share This


More From ScienceDaily



More Mind & Brain News

Tuesday, January 27, 2015

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

City Divided: A Look at Model Schools in the TDSB

City Divided: A Look at Model Schools in the TDSB

The Toronto Star (Jan. 27, 2015) Model schools are rethinking how they engage with the community to help enhance the lives of the students and their parents. Video provided by The Toronto Star
Powered by NewsLook.com
Man Saves Pennies For 65 Years

Man Saves Pennies For 65 Years

Rooftop Comedy (Jan. 26, 2015) A man in Texas saved every penny he found for 65 years, and this week he finally cashed them in. Bank tellers at Prosperity Bank in Slaton, Texas were shocked when Ira Keys arrived at their bank with over 500 pounds of loose pennies stored in coffee cans. After more than an hour of sorting and counting, it turned out the 81 year-old was in possession of 81,600 pennies, or $816. And he&apos;s got more at home! Video provided by Rooftop Comedy
Powered by NewsLook.com
How Technology Is Ruining Snow Days For Students

How Technology Is Ruining Snow Days For Students

Newsy (Jan. 25, 2015) More schools are using online classes to keep from losing time to snow days, but it only works if students have Internet access at home. Video provided by Newsy
Powered by NewsLook.com
Weird Things Couples Do When They Lose Their Phone

Weird Things Couples Do When They Lose Their Phone

BuzzFeed (Jan. 24, 2015) Did you back it up? Do you even know how to do that? Video provided by BuzzFeed
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