ATTITUDES TOWARDS MONEY

AND WELL-BEING

Grażyna Wąsowicz-Kiryło

IAREP / SABE

Rome 2008

Studies on Well-Being (W-B)

Aim:

• What can be done to enhance the sense of W-B?

• Who can be involved in the process?

Multi-dimensional variable

Wide range of correlates and determinants:

economic, sociological, and psychological

Importance of money

Money Matters

Result, interpretation, doubts:

1. Positive correlation: between countries, lower income brackets.

2. Explanation: diminishing marginal utility of money, and importance of needs satisfied with money.

3. Causality: happy people have more money (?)

4. Negative consequences of wealth (social, health, and psychological).

Money

I. Economic approach

Goods & Services Satisfaction

Income Well-Being

Czapiński, 2004; Furnham & Argyle, 2000

II. Economic-psychological approach:

Money Matters – the Aims of the Presentation

Attitudes towards Money (ATM)

Well-Being

Life Attitudes and Values

Q1

A BA

?

Q1. Does the relationship between income and ATM exist?

Q2. Do the relationships between income and ATM vs. W-B exist? What dimensions of ATM are of major significance in shaping the sense of W-B?

Q3. What are the psychological characteristics of individuals performing ATM that lower W-B?

Q4. What can be done to enhance individual (and group) W-B?

Motives of Financial Behaviors

B

Income

Q2Q3

Study on: Questionnaire 1 Questionnaire 2 n

1 Psycho-Economic Well-Being

Barylska & Wąsowicz-Kiryło, 2006

Money and Me

(Wąsowicz-Kiryło, 2003)

83

2 Have or Be Attitude in Life

Grulkowski, 1996 (Fromm,2000) 100

3 Motivational Domains and Values

Brzozowski, 1986

(Schwartz & Bilsky, 1987)

82

4 Bank Services Suszek & Wąsowicz-Kiryło, 2004 210

5 Investing Kowalski & Wąsowicz-Kiryło, 2005 103

6 Saving Podsiadły & Wąsowicz-Kiryło, 2006 106

The Sources of Data

Poland, 2003-2006

The ATM Dimensions

Dimension Description (high scores)

CONTROL over Money Matters

Prudence with which the individual deals with money matters stemming from a rational and competent attitude to money (budgeting, up-to-date knowledge of tax laws, securing oneself for the future).

Financial WELL-BEING

and Investing Money

Satisfaction from one’s financial situation and making investments (stock market, property, credit and loans for future investments).

Money as a MEANS

Strong orientation towards using money on current spending. Treating money as a means to achieving such goals as a comfortable and interesting life, the developments of hobbies and interests, developing skills, independence, safety of close friends and relatives.

Money as a Source of a Sense of GUILT

Scrupulous (stemming from anxiety) control of expenses resulting from a sense of guilt accompanying spending money (specifying a sum that can be spent, comparing prices, checking receipts).

The Meaning of Money for the

SELF

Emotional, positive attitude to money. Treating money as a criterion of self-esteem and the appraisal of others, a means that can solve all problems, an instrument of control over people.

Q1: Personal Income - ATM

Study: CONTROL GUILT SELF MEANS

1 0.07 - 0.33 ** - 0.003 - 0.13

2 - 0.15 - 0.12 0.24 * 0.10

3 - 0.22 - 0.28 * - 0.06 - 0.003

4 - 0.05 - 0.24 ** 0.07 0.06

5 - 0.15 - 0.38 ** 0.04 - 0.03

6 0.09 - 0.24 * - 0.10 - 0.05

Q2: Income & ATM - Well-Being

Well-Being INCOME CONTROL MEANS GUILT SELF

Financial W-B and Investing: I’m satisfied with my financial situation / I invest money

0.26** # 0.35** # - - -

Study on Psycho-Economic W-B:Financial Freedom: I can afford unplanned purchases

0.31 * - 0.16 0.03 - 0.48 ** 0.02

Financial Security: My financial situation is stable

0.54 ** 0.12 0.11 - 0.45 ** 0.03

Job Safety: I perform work corresponding to my abilities / My work gives me pleasure

0.36 ** 0.24 * - 0.03 - 0.38 ** - 0.25 *

Independence: I assign my life goals independently / I cope well in life on my own

0.31 * 0.12 0.35 ** - 0.27 * - 0.13

Self-Confidence: I’m satisfied with the person I am / I feel appreciated by the people who are important to me

0.18 0.04 0.09 - 0.20 p=0.07

- 0.28 *

# average Pearson’s r – six studies

Q3A: ATM - Life Attitudes & Values?

Studies on: GUILT SELF

Have or Be Attitude in Life - 0.09 - 0.67 **

Motivational Domains and Values:

Security

national and family security, a world at peace, responsible

0.24 * - 0.05

Restricted Conformity

clean, self-controlled, obedient, polite

0.23 * 0.28 *

Enjoyment

comfortable life, pleasure, happiness, cheerful

- 0.05 0.18 *

Achievement

a sense of accomplishment, social recognition, an exciting life, ambitious, capable

- 0.18 0.26 *

Pro-Social Concern

equality, salvation, loving, helpful, honest, forgiving

0.03 - 0.43 **

Q3B: ATM - Motives of Financial Behaviors?

Studies on: GUILT SELF CONTROL

Bank services (n=172)

Profit 0.12 - 0.04 0.23 **Safety Reasons 0.20 * - 0.02 0.22 **

Possibility of a quick loan / overdraft 0.06 0.16 * - 0.10

Investing (n=49) - factor motives

HEDONISM I like challenges / It gives pleasure to me

0.23 0.62 ** 0.37 *

PRAGMATISM Money should bring profit

0.22 0.19 0.47 **

Saving (n=56) – factor motives

SELF-RELIANCE In money matters I can only count on myself

- 0.16 0.12 0.43 **

FUTURE I want to reap benefits from it in the future

0.004 0.40 ** 0.34 *

ALTRUISM I want to ensure my children a good financial start

0.02 0.19 0.43 **

SAFETY Lack of savings gives rise to anxiety in me

- 0.30 * 0.11 0.14

Summary of the Main Results

INCOME

GUILT

Psycho-EconomicW-B

SELF

Safety

To Have, Enjoyment, Achievement, Hedonism

- .4 - (.3 to .5)

H: +

+ (.3 to .5) + (.1 to .3)

- .3

H:Self-IdentitySelf-Esteem

PsychologicalW-B

H: - H: -

Social values

H: ?

- .4 + (.3 to .7)

- .2

Q4. What can be done?

1. Economic socialization of children - school and bank programs: cognitive attitude; money as a means to economic ends, and social support; group decision making.

2. Economic socialization of parents – social marketing tools.

Memories (Matthews, 1991, pp. 70-71) Consequences

“My parents, who were quite well off, never let me to spend a dime without my begging and pleading. They said I must never forget that we could ‘wake up poor in the morning’. Sometimes I would lie awake at bedtime, afraid to close my eyes for fear I would wake up hungry and cold.”

GUILT associated with spending money

„My parents said I was a popular kid because they were rich enough to have a house with a tennis court. They told me, quite plainly, that if one was without money, one would be without friends.”

SELF-esteem based on money

Money as means to non-economic ends (get friends)

“My father always said a man should never let a women know he has money or she’ll find a way to take it away from him.”

Money as a mystery and a subject of NOT joint decision making

3. Attitude change - financial therapy and counseling: myths about money, break off the ‘money – emotions’ relation