Gaining Immediate Gratification

Decent Essays
The decision to save enhances well being in the long term but it conflicts with the desire to spend money to gain immediate gratification. The influence of having single versus multiple accounts on individuals savings and spending decisions. We find that individuals save more with a single account than with multiple liquid accounts. Utilizing work on motivated reasoning and fuzzy trace theory, we suggest that multiple accounts engender fuzzy gist representations, making it easier for people to generate justifications to support their desired spending decisions. However a single account reduces the latitude for distortion and hinders generation of justifications to support desirable spending decisions. Across four studies that provide participants with the opportunity to earn, spend and save money, we demonstrate the proposed effect and test the underlying process. …show more content…
The influence of having single versus multiple accounts on individuals savings and spending decisions. We find that individuals save more with a single account than with multiple liquid accounts. Utilizing work on motivated reasoning and fuzzy trace theory, we suggest that multiple accounts engender fuzzy gist representations, making it easier for people to generate justifications to support their desired spending decisions. However a single account reduces the latitude for distortion and hinders generation of justifications to support desirable spending decisions. Across four studies that provide participants with the opportunity to earn, spend and save money, we demonstrate the proposed effect and test the underlying

Related Documents

  • Improved Essays

    Which it can change the way you think and finding their own decisions. Using this technique helped me get through my financial problems. I used to work at Rue21, didn’t care if I own anything or not spending it for important items. A year ago, I bought a whole lot of clothes and shoes just for fun. Of course it sounds silly doing it, but I know it is not an excuse because I chose to spend my money for unnecessary items.…

    • 740 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    I listen to you every day, every night and every morning, and you never say nothing new” (as cited in Hansberry 1959, p 34). If W. Younger is not trying to get the approval of investing in a liquor shop than he incessantly talks about money. This includes the insurance check or if it is rational to spend said check on his sister’s schooling. Orbuch (2010) states that “7 out of 10 couples report that money causes tension in their relationship.” (p 1).…

    • 1370 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    Dave Ramsey is a businessman who is famous for his financial advice on getting out of debt. Ramsey himself had gone into debt and ended up filing for bankruptcy. He started teaching classes and giving advice after he had financially recovered. His advice and ideas have helped many people get out of debt, while also helping them save up for the future. Dave Ramsey has taught me countless ideas over the past two weeks, some of which include not using credit cards, having separate bank accounts, and starting to save early in life.…

    • 538 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    It is greatly likely that the amount of monetary funds one has and behavior are linked in a cause-and-effect relationship. The more impoverish a child is, the more likely they are to develop negative behavior about the outside world and vice…

    • 1555 Words
    • 7 Pages
    Improved Essays
  • Superior Essays

    At times, the reading could leave one feeling slightly perplexed, and aside from the contradicting encouragements, readers would certainly gain a little more perspective on money from this piece. Whenever someone reads the title, “Yes, Money Can Make You Happy,” they may start reading the article under the impression that its main purpose is shallow and or pointless, only to quickly realize that the article’s true purpose is to exploit money’s misinterpretations and the fact that it can help someone to help themselves, and in more ways than one may expect. Proclaiming that an article such as this one could alone alter an individual’s thought process on how to correctly spend money would be dishonest, but it could unquestionably cause one to reevaluate their…

    • 1227 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    First, the Great Depression affected how people act, work, and live. Also, the Great Depression affected how grateful people should be with their money and how they save. The Great Depression effected people in America. The first way the Great Depression affected Americans is how they act, work, and live.…

    • 714 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    When it comes to money, happiness is temporary because money will eventually end if no effort to save is involved. The continuous accumulation of “stuff” can and will quickly drain all funds from checking, savings, and credit card accounts. Ramsey and Ramsey stated that “stuffitis is a deadly disease where the bearer has an insatiable desire for only good stuff.” This is also a point where items such as clothing, vehicles, jewelry, housing, furniture, etc. are all top of the market type of things that are gained at any means necessary. Continuing on, the desire to have more stuff is not actually benefiting the person making the purchases, but the business or organization receiving the funds.…

    • 789 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Book Review Summary In Raising Financially Confident Kids Hunt seeks to equip readers to prepare their children for the reality of managing money, and how to do so without getting into debt. American society, the credit card industry, and advertisers, all strive to turn children into materialistic consumers who spend money without a second thought. Hunt describes her own childhood and how she utilized money and products to feel better. Carrying this same idea into adulthood she spent more than she had to attempt to not only make herself happy, but her husband and kids.…

    • 1669 Words
    • 7 Pages
    Improved Essays
  • Superior Essays

    Sanders 1 Kyra Sanders Montgomery Comp I T/TR 6, October 2015 Poverty in the United States Poverty is one of the most devastating and major issues in which the world faces every day. One does not realize how easy it is to fall into the poverty category. More than 1 million people live in poverty today. Poverty is being poor, unfit, and not being able to purchase the necessities in order to survive. The loss of a job, an illness, or a sudden death in a family can lead to poverty.…

    • 912 Words
    • 4 Pages
    Superior Essays
  • Great Essays

    Budget Analysis Assignment

    • 1580 Words
    • 7 Pages

    For this budget exercise, I found that the category I will spend most of my money on is other car expenses as I am going to buy a car next month. My projected spending for that category is 3700 dollar from September to December which represents about 33 percent of my budget. I don’t’ have spending input from January to August because I have yet to have a car. Following other car expenses, my biggest expenses are miscellaneous where I will spend 1,563 dollars which represent 14 percent of my budget. When I break it down I have already spent 520 dollars from January to August and I am expected to about 1043 dollars from now until the end of the year.…

    • 1580 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    There are many reasons on why saving and budgeting is great to have. Knowing how to finance money is important and many people don 't know how to begin or when. In the book, Personal Finance for teenagers and college students By Tamsen Butler the author explains many ways to create a personal finance. This book is recommended for everyone but mostly concentrates in teenagers and college students. Throughout the book the reader can gain more knowledge on maintaining a budget they wish or a savings account to start and so much more.…

    • 798 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Mark Twain once said, “The worst loneliness is to not be comfortable with yourself.” As a person who struggles with depression and low self-esteem, I find this quote to be very easy to relate to. With this mindset, it can be difficult to have a positive outlook not only on life, but on myself. This essay gives me a chance to explore the parts of myself that I am proud of and examine the people and events that have shaped me. Three words I would use to describe myself are logical, open-minded, and responsible.…

    • 796 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    We all like to spend money and not care about the after effects. Some people over spend, while others under spend their money. It is all about what that money really means to you. Do you care enough to save up for a better future, or do you want temporary happiness now? Can you earn the money you spend very quickly, or does it take time for you to accumulate what you spent in a jiffy?…

    • 1460 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    The Maslow’s Hierarchy of needs is a theory in which people use to motivate themselves to moving a step up in their life. Using this can make a person achieve certain needs. Sometimes making a list of things you think you need to achieve these goals and sticking with it. The list will consist of five steps physiological needs, safety needs, social needs, esteem needs, and self-actualization needs. Each of these play a great part in what is most important when it comes to living a life in which you want the best for yourself.…

    • 1214 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    “Spend your money wisely!” is a lesson often preached in life, but it is easier said than done. I am at the point in my life where every cent matters as I am enrolling in postsecondary. Tuition costs are unbelievable and student debt will have me working for years to pay them off. It is times like these when I look back at when I was careless and lived lavishly. I would often think to myself, “Was that purchase really necessary?…

    • 995 Words
    • 4 Pages
    Improved Essays