Are proactive financial self-control strategies more effective in reducing spending than reactive strategies?

Abstract

Self-control strategies help people resist tempting situations and make more goal-consistent decisions. The Process Model of Self-Control and the Preventive-Interventive Model of Self-Control suggest the most effective strategies are those used before a person encounters a temptation. We examined how proactive self-control strategies (used before a spending temptation) and reactive strategies (used during a spending temptation) impact monthly spending. We randomly assigned participants to watch videos about proactive or reactive strategies, and asked them to self-generate and focus on using these types of strategies over the course of a month. Participants who were assigned to focus on proactive strategies reported spending on average $469 less during that month than those who were assigned to focus on reactive strategies. This finding suggests that, in line with self-control theories, strategies employed before facing a spending temptation are more effective for controlling spending than strategies employed when facing a temptation.