How to ease the pain of payment. 7 studies on the psychology of finance
In UBANK we are interested in everything related to the world of money, including the psychology of finance. And they decided that sometimes it would not be a sin to share with you information about the most interesting scientific experiments and discoveries in this area. After all, they are often not only entertaining, but also useful. Money guides our actions and determines our way of thinking. Depending on how our mind perceives the same amount, it can be squandered, and can become the basis of strategic savings. Western researchers are working hard to deal with all this. And that's what they found.
Silence!
There is a link between talking about money, mentality and the actions of people, at least it was established by researchers from Harvard in conjunction with the David Eccles School of Business at the University of Utah. Psychologists and linguists studied the reaction and follow-up actions of college students who took part in the experiment. One group in the course of role-playing games offered financially-oriented phrases (“She spends money freely”), and the other - neutral (“She walked through the grass”). Representatives of the first group, unlike the second, did not show themselves from the best side: they yulili, deceived, agreed to all sorts of dubious transactions with a conscience - such as obtaining a profitable position during the game of employment in exchange for promises to knock and share inside. Why all? People are more likely to lie or make immoral decisions under the influence of words directly or indirectly related to money. Talking about money makes us ego-centered, ignoring professional ethics and simple human propriety, “even if we are positive and believe that we can distinguish good from bad,” as recognized by Christine Smith-Crow, one of the participants in the study. In general, it is better to earn money - and spend. But talking about them is not worth it.
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The less we know about the mechanics of our payments - how they occur and what they break up taking into account commissions, interest on a loan (if we are talking about a credit card), etc. - the more we spend. In other words, the ease of parting with money is determined by the degree of opacity of expenses. The positive correlation is proven by a series of experiments conducted by the Rothman Business School at the University of Toronto. Author Dilip Soman uses the term “pain of payment” (pain of paying), introduced in the mid-1990s by Israeli consumer behavior expert Ofer Zellermeier. If something is capable of blunting this “pain,” it is only our weak awareness of where the money is flowing.
Not always money is spent in the same way. Of course, if you get by bank cards and rarely resort to cash, you almost do not belong to the conclusion of a study by professors at Canadian University of Guelph and the University of Winnipeg. But in other cases, it is quite applicable: the appearance of money affects our expenses. Dirty money — literally worn, seasoned bills that have passed through many hands — go off noticeably faster than new paperwork. At one stage of the study, subjects were given $ 20 each with the ability to spend them in the store. Old bills flew away, new ones were spent less willingly. The authors also noticed: dirty, wrinkled, sometimes torn bills affect financial behavior in the sense that they push us to a greater risk (subconsciously we want to get rid of them quickly) - for example, the risk of squandering them around the playing table.
Present
Imagine that you received a salary from which you deducted money corresponding to the time taken, but then part of this deduction — say, $ 1,000 — was returned to your account due to the fact that you still worked at that time and the bookkeeping turned this circumstance into your favor. Another situation: you were not credited, but the same $ 1000 was on your account by order of the authorities - as a reward for self-sacrificing work on vacation. In the first case, you get something like a recalculation, and in the second - a bonus. The amount is the same, but we perceive it differently and will spend differently, according to a study by Harvard and the University of Chicago. The “recalculation” should be with you if you are prone to savings, but the “bonus” is likely to be wasted. “All revenues increase a person’s absolute wealth, but consumer decisions can be more based on perceived changes in wealth,” the authors emphasize.
Hourly pay is likely to deprive you of the desire to do something on a voluntary basis and on a voluntary basis. Monthly? You are not lost to volunteer programs or any other activities that do not involve earnings. And all because in the first case, according to a study by Stanford University and the Rothman Business School at the University of Toronto, time becomes a category of economic. Literally: time (every hour) is money that you don't want to give to anyone. While in the second case, time does not have a hard peg to money, respectively, a person has it more freely or even frivolously. “People who are paid by the hour are usually more likely to trade their time than those who receive a fixed monthly salary,” the authors argue. And this means that time, which does not bring money, will be considered the first category of ineptly used, wasted money.
Waitress
Clients leave good tips in restaurants often in order to appear more generous than they are (in their own eyes, or in the eyes of friends, colleagues, and other fellow coworkers). Regardless of the size of the tip, staff, however, take the extra reward for granted, and therefore do not always provide the expected level of service. Therefore, tips in general have little to do with rational financial behavior, say researchers of this phenomenon from Cornell University. Evaluation of the quality of service for participants in experiments who went to restaurants and reported in detail on the results varied to a much greater extent than the size of the tips. People just left some standard amount, because they got used to leave it, equally rewarding for a magnificent, and for a tolerable, and even for terrible service. And this is really meaningless.
Do you like to spend money on your loved ones? In this case, you will not be as happy as you could, say the authors of a study conducted by the Harvard Business School and experts from Canadian University of British Columbia. Already from the name of the work it is clear what the British-Colombian scientists worked for: “Spending money on others promotes happiness” (which in literary translation can sound in Russian as “spending money on others, you will make yourself happier”). What is especially nice is not the amount of expenses. The results of the experiments clearly indicated that the meager amounts - even less than $ 5, taken from our budget plans and spent on someone else - can also change the mood balance just like expensive and ambitious gifts that leave gaping holes in the budget. . Spending money on others will make us feel a bit happier than usual. At least for a few hours on a single day. And a little bit of happiness - isn't that a reason to fork out? At least, you can relax a bit and for a while stop thinking about money.
1. ABOUT THE MAIN BETTER TO HELP UP
Silence!
There is a link between talking about money, mentality and the actions of people, at least it was established by researchers from Harvard in conjunction with the David Eccles School of Business at the University of Utah. Psychologists and linguists studied the reaction and follow-up actions of college students who took part in the experiment. One group in the course of role-playing games offered financially-oriented phrases (“She spends money freely”), and the other - neutral (“She walked through the grass”). Representatives of the first group, unlike the second, did not show themselves from the best side: they yulili, deceived, agreed to all sorts of dubious transactions with a conscience - such as obtaining a profitable position during the game of employment in exchange for promises to knock and share inside. Why all? People are more likely to lie or make immoral decisions under the influence of words directly or indirectly related to money. Talking about money makes us ego-centered, ignoring professional ethics and simple human propriety, “even if we are positive and believe that we can distinguish good from bad,” as recognized by Christine Smith-Crow, one of the participants in the study. In general, it is better to earn money - and spend. But talking about them is not worth it.
')
2. Ignorance Buys Pain Payments
The less we know about the mechanics of our payments - how they occur and what they break up taking into account commissions, interest on a loan (if we are talking about a credit card), etc. - the more we spend. In other words, the ease of parting with money is determined by the degree of opacity of expenses. The positive correlation is proven by a series of experiments conducted by the Rothman Business School at the University of Toronto. Author Dilip Soman uses the term “pain of payment” (pain of paying), introduced in the mid-1990s by Israeli consumer behavior expert Ofer Zellermeier. If something is capable of blunting this “pain,” it is only our weak awareness of where the money is flowing.
3. DIRTY MONEY IN A WALLET NOT DELAYED
Not always money is spent in the same way. Of course, if you get by bank cards and rarely resort to cash, you almost do not belong to the conclusion of a study by professors at Canadian University of Guelph and the University of Winnipeg. But in other cases, it is quite applicable: the appearance of money affects our expenses. Dirty money — literally worn, seasoned bills that have passed through many hands — go off noticeably faster than new paperwork. At one stage of the study, subjects were given $ 20 each with the ability to spend them in the store. Old bills flew away, new ones were spent less willingly. The authors also noticed: dirty, wrinkled, sometimes torn bills affect financial behavior in the sense that they push us to a greater risk (subconsciously we want to get rid of them quickly) - for example, the risk of squandering them around the playing table.
4. BONUS RICHES
Present
Imagine that you received a salary from which you deducted money corresponding to the time taken, but then part of this deduction — say, $ 1,000 — was returned to your account due to the fact that you still worked at that time and the bookkeeping turned this circumstance into your favor. Another situation: you were not credited, but the same $ 1000 was on your account by order of the authorities - as a reward for self-sacrificing work on vacation. In the first case, you get something like a recalculation, and in the second - a bonus. The amount is the same, but we perceive it differently and will spend differently, according to a study by Harvard and the University of Chicago. The “recalculation” should be with you if you are prone to savings, but the “bonus” is likely to be wasted. “All revenues increase a person’s absolute wealth, but consumer decisions can be more based on perceived changes in wealth,” the authors emphasize.
5. TIME - MONEY
Hourly pay is likely to deprive you of the desire to do something on a voluntary basis and on a voluntary basis. Monthly? You are not lost to volunteer programs or any other activities that do not involve earnings. And all because in the first case, according to a study by Stanford University and the Rothman Business School at the University of Toronto, time becomes a category of economic. Literally: time (every hour) is money that you don't want to give to anyone. While in the second case, time does not have a hard peg to money, respectively, a person has it more freely or even frivolously. “People who are paid by the hour are usually more likely to trade their time than those who receive a fixed monthly salary,” the authors argue. And this means that time, which does not bring money, will be considered the first category of ineptly used, wasted money.
6. TIPS - SENSE
Waitress
Clients leave good tips in restaurants often in order to appear more generous than they are (in their own eyes, or in the eyes of friends, colleagues, and other fellow coworkers). Regardless of the size of the tip, staff, however, take the extra reward for granted, and therefore do not always provide the expected level of service. Therefore, tips in general have little to do with rational financial behavior, say researchers of this phenomenon from Cornell University. Evaluation of the quality of service for participants in experiments who went to restaurants and reported in detail on the results varied to a much greater extent than the size of the tips. People just left some standard amount, because they got used to leave it, equally rewarding for a magnificent, and for a tolerable, and even for terrible service. And this is really meaningless.
7. HAPPINESS TO SPEND
Do you like to spend money on your loved ones? In this case, you will not be as happy as you could, say the authors of a study conducted by the Harvard Business School and experts from Canadian University of British Columbia. Already from the name of the work it is clear what the British-Colombian scientists worked for: “Spending money on others promotes happiness” (which in literary translation can sound in Russian as “spending money on others, you will make yourself happier”). What is especially nice is not the amount of expenses. The results of the experiments clearly indicated that the meager amounts - even less than $ 5, taken from our budget plans and spent on someone else - can also change the mood balance just like expensive and ambitious gifts that leave gaping holes in the budget. . Spending money on others will make us feel a bit happier than usual. At least for a few hours on a single day. And a little bit of happiness - isn't that a reason to fork out? At least, you can relax a bit and for a while stop thinking about money.
Source: https://habr.com/ru/post/228163/
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