Title: Note on ways of saving: mental mechanisms as tools for self-control?

Authors: Philipp E. Otto, Greg B. Davies, Nick Chater

Addresses: Department of Psychology, University College London, Gower Street, London WC1E 6BT, UK. ' Department of Psychology, University College London, Gower Street, London WC1E 6BT, UK. ' Department of Psychology, University College London, Gower Street, London WC1E 6BT, UK

Abstract: With Keynes (1936), it is part of accepted theory that we have different motives for saving, including the need to secure means for the future. To bridge the gap between motives and observed behaviour, we assume it is necessary to understand how people actually try to achieve their saving goals. A new method of visualising existing saving concepts is introduced, which shows that individuals apply a range of saving strategies to organise their finances. Based on a financial personality survey it is shown how external as well as internal control for saving can be improved systematically.

Keywords: self-control; saving strategies; discounting; mental accounts; financial personality; personal finances; savings.

DOI: 10.1504/GBER.2007.013703

Global Business and Economics Review, 2007 Vol.9 No.2/3, pp.227 - 254

Published online: 22 May 2007 *

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