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The Big Five personality traits, material values, and financial well-being of self-described money managers

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  • Donnelly, Grant
  • Iyer, Ravi
  • Howell, Ryan T.

Abstract

Previous research has linked personality traits, material values, and money management to savings, debt, and compulsive buying. To extend previous research, four online surveys examined the Big Five personality traits and material values of those who manage their money and determined the independent effects of money management on wealth, debt, and compulsive buying. Results suggest that (a) individuals who believe that material possessions can provide happiness manage their money less and (b) highly conscientious individuals manage their money more because they have positive financial attitudes as well as a future orientation. Further, money management is significantly related to increased savings, decreased debt, and less compulsive buying even after controlling for numerous socio-demographic and dispositional variables. In the Discussion we suggest that materialists may experience a ‘pain of knowing’ about their finances because money management may highlight the discouraging implications of their purchasing behavior.

Suggested Citation

  • Donnelly, Grant & Iyer, Ravi & Howell, Ryan T., 2012. "The Big Five personality traits, material values, and financial well-being of self-described money managers," Journal of Economic Psychology, Elsevier, vol. 33(6), pages 1129-1142.
  • Handle: RePEc:eee:joepsy:v:33:y:2012:i:6:p:1129-1142 DOI: 10.1016/j.joep.2012.08.001
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    References listed on IDEAS

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    Cited by:

    1. Brown, Sarah & Taylor, Karl, 2014. "Household finances and the ‘Big Five’ personality traits," Journal of Economic Psychology, Elsevier, pages 197-212.
    2. Brown, Sarah & Taylor, Karl, 2015. "Charitable Behaviour and the Big Five Personality Traits: Evidence from UK Panel Data," IZA Discussion Papers 9318, Institute for the Study of Labor (IZA).
    3. Kirk Warren Brown & Tim Kasser & Richard M. Ryan & James Konow, 2016. "Materialism, Spending, and Affect: An Event-Sampling Study of Marketplace Behavior and Its Affective Costs," Journal of Happiness Studies, Springer, vol. 17(6), pages 2277-2292, December.
    4. Górnik-Durose, Małgorzata E. & Pilch, Irena, 2016. "The dual nature of materialism. How personality shapes materialistic value orientation," Journal of Economic Psychology, Elsevier, vol. 57(C), pages 102-116.

    More about this item

    Keywords

    Money management; Conscientiousness; Materialism; Savings; Debt;

    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles

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