Saving in Cycles: How to Get People to Save More Money

Publication Type:
Journal Article
Psychological Science, 2014, 25 (2), pp. 531 - 537
Issue Date:
Filename Description Size
0956797613512129.pdfPublished Version226.6 kB
Adobe PDF
Full metadata record
Low personal savings rates are an important social issue in the United States. We propose and test one particular method to get people to save more money that is based on the cyclical time orientation. In contrast to conventional, popular methods that encourage individuals to ignore past mistakes, focus on the future, and set goals to save money, our proposed method frames the savings task in cyclical terms, emphasizing the present. Across the studies, individuals who used our proposed cyclical savings method, compared with individuals who used a linear savings method, provided an average of 74% higher savings estimates and saved an average of 78% more money. We also found that the cyclical savings method was more efficacious because it increased implementation planning and lowered future optimism regarding saving money. © The Author(s) 2013.
Please use this identifier to cite or link to this item: