Survey shows optimists save more
When you hear the term 'optimistic personality,' you might imagine someone who doesn't think deeply and seriously about the future and doesn't save or invest for it. However, a study conducted by researchers at
A glass half full of money: Dispositional optimism and wealth accumulation across the income spectrum.
https://psycnet.apa.org/doiLanding?doi=10.1037%2Fpspp0000530
Optimism motivates people to save for future despite present challenges, study suggests
https://phys.org/news/2025-01-optimism-people-future.html
A research team led by Joe Gladstone, an assistant professor of financial decision-making at the University of Colorado Boulder, analyzed data from eight large-scale surveys conducted in the United States, the United Kingdom, and 14 European countries to examine the impact of 'dispositional optimism,' or positive expectations about the future, on financial decisions.
A total of more than 140,000 people participated in the eight studies, and participants' optimism was assessed by how much they agreed with statements such as 'I am optimistic about my future,' 'Overall, I expect more good things to happen than bad things,' and 'When the future is uncertain, I usually hope for the best.' Participants were also asked to report their income, savings, and in some cases, total assets.
The researchers found that participants who were more optimistic across all survey results had more savings, on average: For example, a one standard deviation higher optimism score was associated with an increase in savings of $1,352 in households with a median savings balance of $8,000.
The relationship between optimism and savings was found even when taking into account other factors that may affect savings and optimism, including age, gender, partner status, parental status, childhood socioeconomic status, health, employment status, and
'After controlling for these variables, the effect of optimism was similar to that found for conscientiousness in previous studies,' Gladstone said. 'Conscientiousness is widely recognised to have a positive impact on financial outcomes. And optimism appears to have a slightly stronger effect on savings behaviour than financial literacy or risk tolerance.'
The team also found that the association between optimism and greater savings was strongest among people with lower incomes. This may be because higher income levels provide more opportunities for automatic savings, such as paying off a mortgage or saving for retirement. 'For people who live paycheck to paycheck, saving may seem wasteful, but an optimistic outlook may provide an incentive to keep money set aside despite current challenges,' said Gladstone.
'The study has implications for financial education programs and policies aimed at increasing savings rates, especially among the economically vulnerable. The researchers say that incorporating optimism-building techniques into traditional financial literacy training could prove to be a powerful combination,' said PsyPost, a psychology media outlet.
'Ultimately, a hopeful mindset about the future, combined with smart money management skills, may be the key to helping more people achieve financial security,' Gladstone said.
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