Speaking of Psychology Encore - Tightwads and spendthrifts: How emotions drive our shopping behavior, with Scott Rick, PhD
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Nov 27, 2024 Scott Rick, an associate professor at the University of Michigan's Ross School of Business, dives into the emotional forces that influence our shopping habits. He explores why some people effortlessly spend while others struggle, dissecting the concepts of tightwads and spendthrifts. Rick reveals how events like Black Friday play with our emotions and why 'retail therapy' might not be as effective as we think. He also touches on the development of spending behaviors in children and the tensions between financial personalities in relationships.
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Tightwads vs. Frugal People
- Tightwads experience emotional pain when spending, unlike frugal people who enjoy saving.
- Spendthrifts overspend and regret it, while unconflicted consumers find a balance.
Early Spending Habits
- Spending habits emerge early in childhood, influenced by parents and financial experiences.
- A "tightwad-spendthrift scale" for kids aged 5-10 reveals similar spending patterns to adults.
Opposites Attract, Then Clash
- People often enter relationships with their financial opposites, finding it initially attractive.
- However, these "fatal attractions" often lead to conflict and dissatisfaction later.