The Sentimental Savings Study: Using Financial Psychology to Increase Personal Savings

Journal of Financial Planning: October 2019

Executive Summary

• Previous research has demon strated that financial behaviors, such as saving behaviors, are heavily influenced by emotion. This study sought to determine what effect engaging people emotion ally using a sentimental item would have on their saving behaviors. 
• A double-blind, randomized experiment was conducted comparing a financial psychology session to a financial education session. A total of 102 subjects participated in the three stages of the study, providing pre-session, post-session, and three-weekfollow-up data. 
• Previous research has demon strated that financial behaviors, such as saving behaviors, are heavily influenced by emotion. This study sought to determine what effect engaging people emotion ally using a sentimental item would have on their saving behaviors. 
• A double-blind, randomized experiment was conducted comparing a financial psychology session to a financial education session. A total of 102 subjects participated in the three stages of the study, providing pre-session, post-session, and three-week 
• Immediately after the session, the group that received the financial psychology session showed statis tically significant increases in their readiness to save, confidence in their ability to save more, financial satisfaction, and financial health. 
• At the three-week follow-up, the financial psychology group reported a 73 percent increase in their rates of savings from pre session while the financial educa tion group reported a 22 percent increase in their rates of savings rates during the same period.

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