A meta-analysis of financial self-control strategies: Comparing empirical findings with online media and lay person perspectives on what helps individuals curb spending and start saving

Abstract

Self-control can be assisted by using self-control strategies rather than relying solely on willpower to resist tempting situations and to make more goal-consistent decisions. To understand how self-control strategies can aid financial goals, we conducted a meta-analysis (Study 1) to aggregate the latest research on self-control strategies in the financial domain and to estimate their overall effectiveness for saving and spending outcomes. Across 29 studies and 12 different self-control strategies, strategies reduced spending and increased saving significantly with a medium effect size (d = 0.57). Proactive and reactive strategies were equally effective. We next examined whether these strategies studied in the academic literature were present in a media sample of websites (N = 104 websites with 852 strategies) and in individuals’ personal experiences (N = 939 participants who listed 830 strategies). About half the strategies identified in the meta-analysis were present in the media sample and about half were listed by lay participants as strategies they personally use. In sum, this paper provides a comprehensive overview of the self-control strategies that have been studied in the empirical literature to date and of the strategies promoted in the media and used in daily life, identifying gaps between these perspectives.

Housing safety and health academic and public opinion mining from 1945 to 2021: PRISMA, cluster analysis, and natural language processing approaches

“…Their results showed that although almost all experts opposed this event, many web-based posts supported it. To understand how self-control strategies helped reach financial goals, Davydenko et al ( 47 ) conducted a meta-analysis to aggregate the latest research on self-control strategies in the financial domain and estimate their overall effectiveness for saving and spending outcomes. Their studies highlighted the academic, online media, and lay-person perspectives.…”

Financial self‐regulation

“…How much does media advice overlap with self‐regulation theories and financial decisions research? A coding analyses of a sample of online media articles on saving and spending advice (Davydenko et al., 2021) found that about half of media recommended financial self‐regulation strategies were similar to strategies studied in the academic literature—and about half were different. For example, strategies recommended in the media that reflect academic knowledge were the automatization of savings (Bronchetti et al., 2011; Rabinovich & Webley, 2007) and planning ahead by making shopping lists (e.g., Gilbert et al., 2002).…”

“…For example, strategies recommended in the media that reflect academic knowledge were the automatization of savings (Bronchetti et al., 2011; Rabinovich & Webley, 2007) and planning ahead by making shopping lists (e.g., Gilbert et al., 2002). A sample of lay people reporting their own everyday strategy use also reported financial self‐regulation strategies with limited overlap with the academic literature (Davydenko et al., 2021). Table 1 presents quotes from participants who report their own personal financial strategies (Peetz & Davydenko, 2021).…”

“…Interestingly, one of the most common strategies endorsed in the media and frequently mentioned by lay participants is ‘being a savvy shopper’ (Davydenko et al., 2021), including actions such as using coupons, only buying on sale items, and choosing store brands. Buying cheaper products by definition reduces spending.…”

“…For example, one strategy is to avoid the tempting situation entirely (‘situation selection’, Duckworth, Gendler, et al., 2016), which for financial self‐regulation might mean not entering a shop or avoiding a website that has a tempting sale. In parallel to self‐regulation models, research across economics, marketing, and consumer psychology have studied a variety of situational and cognitive factors that influence financial decisions (see Davydenko et al., 2021, for a review). While not posed as a self‐regulation problem, this research show that specific thoughts and actions can influence saving and spending decisions.…”