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ATTITUDES TOWARDS MONEY
AND WELL-BEING
Grażyna Wąsowicz-Kiryło
IAREP / SABE
Rome 2008
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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
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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
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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
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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
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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.
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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
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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
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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 **
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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
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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
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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