ArticlePDF Available

Abstract

The New Psychology of Money is an accessible and engrossing analysis of our psychological relationship to money in all its forms. Comprehensive and insightful, Adrian Furnham explores the role that money plays in a range of contexts, from the family to the high street, and asks whether the relationship is always a healthy one. Discussing how money influences what we think, what we say, and how we behave in a range of situations, the book places the dynamics of high finance and credit card culture in context with traditional attitudes towards wealth across a range of cultures, as well as how the concept of money has developed historically. The book is split into four sections: Understanding Money. What are our attitudes to money, and how does nationality, history and religion mediate those attitudes? Money in the Home How do we grow up with money, and what role does it play within the family? What role does gender play, and can we lose control in dealing with money? Money at Work. Are we really motivated by money at work? And what methods do retailers use to persuade us to part with our money? Money in Everyday Life. How do we balance the need to create more money for ourselves through investments with the desire to make charitable contributions, or give money to friends and family? How has the e-revolution changed our relationship to money? Radically updated from its original publication in 1998, The New Psychology of Money is a timely and fascinating book on the psychological impact of an aspect of daily life we generally take for granted. It will be of interest to all students of psychology, economics and business and management, but also anyone who takes an interest in the world around them.
The Psychology of Money
Adrian Furnham
Professor of Psychology
e-mail: A.Furnham@ucl.ac.uk
SOME DEFINITIONS
Psychologist:
Man who goes to a strip show and looks at the
audience.
Psychology:
Study of the id by the odd.
Psychologists’ greeting each other:
“You’re fine; how am I?
Business guru
Word used by journalists because they can’t spell
charlatan.
Business consultant:
A simple organism designed to translate bullshit
into air-miles.
Psychologist:
The next person you start talking to after you start talking
to yourself.
Psychologist:
A professional who asks you a lot of expensive questions
your partner asks you for nothing.
Psychologist:
A person who studies the problems of others in an attempt
to understand their own problems.
Psychiatrist:
A doctor who can’t stand the sight of blood.
Psychotherapy:
The art of teaching people how to stand on their own feet
while reclining on couches.
Psychoanalysis
The science that enables us to correct faults by confessing
our parent's shortcomings.
Is Money a Taboo Topic?
Rich people, who dictate etiquette, eschew
discussing their money lest the poor figure out
how to get it for themselves. Or because friends
and relatives might want it or become envious of it.
It is superstitious to talk of money: it means it
could be taken away.
Boasting about money could encourage envious
others to inform tax authorities.
On some levels we know our attitudes to money
reveal a lot about us which we would rather keep
private.
Five topics
1. Money at work
2. Emotional associations of money.
3. Learning about money.
4. Money pathology.
5. Money behaviour today.
Motivators
Promotions
opportunities
Opportunity for
personal growth
Recognition
Responsibility
Achievement
Promote job
satisfaction
Hygiene factors
Quality of supervision
Pay
Company policies
Physical working
conditions
Relations with others
Job security
Prevent job
dissatisfaction
Herzberg’s Two-Factor Theory
Herzberg’s two-factor theory suggests that job satisfaction and job dissatisfaction
stem from different sets of factors. These are labelled motivators and hygienes,
respectively.
MONEY AS A MOTIVATOR
More a de-motivator if salary is not “market-place”
competitive.
(Hygiene factor, not a motivator)
Very short term effect because
Adaptation: effect disappears rapidly
Comparison: now against a different group
Alternatives: other things (security) worth more
Increased worry: taxation, burglary
Motivation
Intrinsic
Extrinsic
Kohn: Direct, specific, monetary rewards reduce motivation to do
creative work.
Eisenberger: All behaviour is positively shaped by (monetary) rewards.
Does intrinsic motivation decrease with extrinsic rewards?
But all jobs have a mix of intrinsically and extrinsically interesting features
and levels of difficulty.
Intrinsic motivation is increased by a sense of mastery, competence, skill
acquisition, control and self determination.
The Trade-Off Dilemma in all business
Cost (£/$)
Time (speed) Quality
If it is Quick and Cheap ..it is probably of poor Quality
If it is Quick and Good Quality ..it is probably going to be very Expensive
If it is Cheap and Good Quality ..it will probably take a very long time to make
Latent Functions of Work
Work is a source of activity
It keeps people occupied, interested and active
Work structures time
It gives daily life reference points; regularities
Work gives an opportunity for social interaction
It gives one a friendship and social support network
Work provides a source of identity
It gives people a sense of your status in society and values
Work provides a source of creativity and mastery
It provides the feeling that one has achieved something worthwhile and
useful
Work gives a sense of purpose
It makes people feel needed and stops alienation
Incentives
Merit pay/pay for performance
Bonus system
Individual vs Group Equity + Equality
Emotional differences between men’s and women’s reactions to
money
In the past year, can you recall associating money with any of the following?
Women
(%) Men
(%) Women
(%) Men
(%)
Anxiety 75 67 Distrust 23 25
Depression 57 46 Sadness 22 20
Anger 55 47 Respect 18 19
Helplessness 50 38 Indifference 16 16
Happiness 49 55 Shame 13 9
Excitement 44 49 Love 10 13
Envy 43 38 Hatred 8 7
Resentment 42 31 Spite 9 8
Fear 33 25 Reverence 2 5
Guilt 27 22 None 2 5
Panic 27 16
My mother said only poor people went to heaven.
My father said only criminals were wealthy.
My parents warned me not to let anyone know we had
money or they would jinx us.
My parents said I was a popular kid because they were rich
enough to have a house with a tennis court. They told me
quite plainly that if one was without money, one would be
without friends.
My parents told me I had to grew up to be a success, or,
being financially unsuccessful themselves, they would end
up ‘charity cases’.
(Matthews, 1991, pp.70-1)
My mother always said a smart woman doesn’t ever let a
man know she's capable of making money.
My father always said there was a ‘secret’ to making
money, but that no one in our family knew what it was.
Making lots of money was something of which only ‘other
people’ were capable.
My parents, who were quite well off, never let me spend a
dime without my begging and pleading. They said I must
never forget that we could ‘wake up poor in the morning’.
Sometimes I would like awake at bedtime, afraid to close
my eyes for fear I would wake up hungry and cold.
(Matthews, 1991, pp.70-1)
Pocket Money/Allowance
When to start a system
Agreement about rules:
- How much
- When paid
- What covered
Related to chores
Increase over time
Advice + Help
Money Madness
Security
Emotional life jacket, security blanket, method of
starving off anxiety (compulsive saver, self denier).
Power
Money can be used to acquire importance, domination
and control (manipulate, godfather).
Love
Money can buy affection, loyalty, self worth (love
buyers, sellers and stealers).
Freedom
Money buys time to pursue whims and interests free
one from daily routine and restrictions.
Money as Security
A.The Compulsive Saver
For them saving is its own reward. They tax themselves and no amount of
money saved is sufficient to provide enough security.
B.The Self-denier
Self-deniers tend to be savers but enjoy the self-sacrificial nature of self-
imposed poverty. They may spend money on others, to emphasize their
martyrdom. Psychoanalysts point out that their behaviour is often a
disguise for envy, hostility and resentment towards those who are better
off.
C.The Compulsive Bargain Hunter
Money is fanatically retained until the situation is “ideal” and then joyfully
given over. The thrill is in out-smarting others – both those selling and
those paying the full price.
D.The Fanatical Collector
Obsessed collectors accumulate all sorts of things, some without much
intrinsic value. They turn to material possessions rather than humans as
potential sources of affection and security.
Money as Power
A. The Manipulator
These people use money to exploit others’ vanity and greed.
Manipulating others makes this type feel less helpless and
frustrated. Their greatest long-time loss is integrity.
B. The Empire builder
They have (or appear to have) an overriding sense of
independence and self-reliance. Repressing or denying their
own dependency needs, they may try to make others
dependent on them. Many inevitably become isolated and
alienated, particularly in their declining years.
C. The Godfather
They have more money to bribe and control so as to feel
dominant. They often hide an anger and a great over-sensitivity
to being humiliated – hence the importance of public respect.
But because they buy loyalty and devotion they tend to attract
the weak and insecure. They destroy initiative and
independence in others and are left surrounded by second-rate
sycophants.
Money as Love
A. The Love Buyer
Many attempt to buy love and respect: those who visit
prostitutes; those who feel unloved not unlovable and
avoid feelings of rejection and worthlessness by
pleasing others with their generosity.
B. The Love Seller
They promise affection, devotion and endearment for
inflating others’ ego. They can feign all sorts of
responses and are quite naturally attracted to love
buyers.
C. The Love Stealer
The kleptomaniac is not an indiscriminate thief but one
who seeks out objects of symbolic value to them.
They are hungry for love but don’t feel they deserve it.
Money as Freedom
A. The Freedom Buyers
Money buys escape from orders, commands, even suggestions
that appear to restrict autonomy and limit independence. They
want independence not love : in fact, they repress and hence
have a strong fear of dependency urges.
A. The Freedom Fighters
They reject money and materialism as the cause of
enslavement of many. Frequently political radicals, drop-outs or
technocrats, they are often passive-aggressive and attempt to
resolve internal conflicts and confused values. Camaraderie
and companionship are the main rewards for joining the anti-
money forces.
What Causes Money Pathology?
Early Learned Experience:
Growing up in poverty, economic recession or clear economic
comparative difficulty has been suggested as a motive for some
individuals to be driven to secure, in both senses of the word, large
sums of money.
Intergroup Rivalry:
The concept of pity by the rich for the poor; and the envy and hatred of
the poor for the rich provide plenty of opportunity for intergroup
conflict. Threats to security, status, reputation and ego can act as
powerful forces as well as a psychological threat to attempt to control
money.
Ethics and Religion:
Feeling guilty about money and being personally responsible for the
poor is at the heart of many religions. The self-denial, self-deprecation
and guilt associated with certain puritan sects has often been invoked
for the strange behaviour of individuals taught that too much money
acquired “too easily” or displayed too ostentatiously is sinful.
Money Problems are Caused By:
Gambler’s
fallacy: throwing good money after bad
Greed: the ally of manipulator and con artist
Fear: inhibits reasonable risk taking
Envy: it distracts one, may limit opportunity and wastes
psychic energy
Anger: can destroy business relationships and negotiations
Self-concept: believing they do not have the ability to become
rich
Contentment: simply being happy with one’s lot
Honesty: not being prepared to sacrifice certain principles for
gain
Compassion: emotional softness, tenderness and caring that may
lead to poor economic decisions
Sentiment: attachment to traditions, possessions that make people
not value being rich to sufficiently want to achieve it
Are people rational?
Psycho-logical rather than logical.
Prone to inconsistencies
The Rational Saver? - Keynes
Precaution:To build up a reserve against unforeseen
contingencies.
Foresight:To provide for an anticipated future relation between
the income and needs of the individual or his family different
from that which exists in the present (old age, education).
Calculation:To enjoy interest and appreciation – because
larger real consumption in the future is preferable to a present
smaller consumption.
Improvement:To enjoy a gradually increasing expenditure,
since most people look forward to a gradually improving
standard of living.
The Rational Saver? - Keynes
Independence:To enjoy a sense of independence and power
to do things, though without a clear idea of definite intention of
specific action.
Enterprise:To secure a capital mass to carry out speculative
or business enterprise.
Pride: To bequeath a fortune to others.
Avarice: To satisfy pure miserliness.
Eight Causes of Debt
1. Attitudes to/social support for debt:
as society has moved from abhorrence of debt to
acceptance of credit, so modern consumer society
accepts (even encourages) debt.
2. Economic socialisation:
Families that model acceptance of debt perpetuate
it.
3. Social Comparison:
If people compare themselves with a richer
inappropriate reference group, they may easily get
into debt ‘keeping up with the Joneses’.
4. Money Management:
Poor ability to manage money reflects both
disorganised life-style and problematic finances.
Eight Causes of Debt
5. Consumer behaviour:
- inappropriate purchasing patterns (believing luxuries are
necessities) soon causes debt.
6. Time horizons :
- the less realistic a person’s time horizon, the easier it is
for he or she to run into debt.
7. Attitudes to debt:
- clearly, if one is neither worried nor embarrassed by
debt, it is easier to fall into it.
8. Fatalism:
- the more people have an external locus of control the
more they are likely to fall into debt.
Generational differences
Reflect attitudes to and behaviour regarding…
Borrowing, Credit, Debt, Insurance, Spending
Different groups
Traditionalists
Baby boomers
Generation X
Millennials
Cohort and life cycle or real generational
differences
Traditionalists
Conservative savers?
Victims of welfare and state promises
Anti-credit, anti-debt.
Mend and make do stoics.
Baby Boomers
Risk-takers and hedonists.
Investors + achievement-oriented
Idealistic materialists
Future oriented and optimistic
Generation X
Alienated + disenchanted
Now oriented + credit addicts?
Self-absorbed but directionless
Millenials
Materialistic & security conscious.
Parent dependent for longer
Used to long term debt
Financially semi-savvy?
The Seven Deadly Sins of Investing
Confirmation Bias:
Only looking for information and news which is in favour of your ideas
Optimism Bias:
Believing that you are above average and that misfortunes are more likely to
befall others
Illusion of Control:
Overestimation of the control you have over economic affairs thinking that you
can always influence the outcome
Overconfidence in Prediction:
Believing that your prognostication of the future is the best one
Risk and Regret Aversion:
Either being too cautious to invest or to risky to get out (risky shift; Shift to
Caution)
Group Think:
Responding to conformist pressure to think like others
Memory Distortion:
Selective forgetting and memory for past experience in the financial world
What should banks know and do
Acknowledge that many well-educated, sophisticated
adults remain ignorant and embarrassed about money. It
is a thin line between being patronizing, educative, and
perplexing.
Find out what each client thinks about money. What are
the emotional associations and “hot buttons”.
Remember each type needs a different sales strategy and
possibly a different product.
Explain the mythology, symbolism, imagery better –
more psychology, and use it in marketing.
Be confident. You will be somewhere between a
psychiatrist, hairdresser, and gynaecologist because of
your role as confidant.
... Analiz sonucunda 1. faktörün "ideale ulaşmak için bir araç olarak para", 2. faktörün "İlişkiler için bir araç olarak para", 3. faktörün "Somut bir araç olarak para" olduğu sonucuna varılmıştır. Bu iki boyutun Furnham (2014) yapılarına benzer olduğuna bu bağlamda belirtilmelidir. Anahtar Kelimeler: Para tutumu, finansal okuryazarlık, para inançları ...
... A variety of forces and factors can influence the attitudes, beliefs and actions of a individual with regard to money. Different measures of money have been established over the past three decades (Furnham, 2014;Lay & Furnham, 2018). ...
... Money, if and when they attain it, is what many people are searching for, and proud to show off. Money is a significant source of social standing and of financial influence and wealth (Furnham, 2014;Lay and Furnham, 2018). It should be pointed out that these two dimensions are similar to the constructs of Furnham (2014). ...
Article
Full-text available
To develop a scale for money attitudes are of having significance to get an idea regarding many fields ranging from financial literacy skills to economic and demographic characteristics. Therefore, in this study, Money Attitude Scale was developed in Turkish. As for population, 360 individuals (160 male, 200 female) participated for the explanatory analysis in the study. Additionally 200 individuals participated for the confirmatory analysis in the study. The population consists of the students from various departments ranging from Economic to Mathematics to Education in Iğdır University and Ondokuz Mayıs University. As fort he explanatory factor analysis, a scale having 22 items and three factors was created. It was found that the Cronbach Alpha constant was .874. As for the confirmatory factor analysis, χ2 /sd is found to be 1.467, CFI is found to be .960, GFI is found to be .935, IFI is found to be .961, TLI value is found to be .955, RMSEA value is found to be .048 and RMR is found to be .129 indicating that that the structure is at an acceptable level. Neural network analysis show that the most important items for this model are the items belonging factor 3 “Money as a concrete medium” and Factor 2 (“Money as a tool for relationships”) altough they have less items compared to first factor. At the end of the analysis it was concluded that factor 1 should be entitled as “Money as a tool for reaching ideal”, factor 2 was entitled as “Money as a tool for relationships” and factor 3 was entitled as “Money as a concrete medium”. It should be pointed out that these two dimensions are similar to the constructs of Furnham (2014).
... Further compounding these issues is the fact that the topic of money is traditionally a major taboo topic alongside religion, politics, health and death (Taylor, 2014). This is because possessing a huge amount of money communicates the perception of greed, may cause others to be envious and in some situations, raises superstitions surrounding the fear of losing money (Furnham, 2014). As such, issues surrounding money and personal finance are often avoided in courtship, resulting in potential conflict during marriage (Britt & Huston, 2012;Furnham, 2014). ...
... This is because possessing a huge amount of money communicates the perception of greed, may cause others to be envious and in some situations, raises superstitions surrounding the fear of losing money (Furnham, 2014). As such, issues surrounding money and personal finance are often avoided in courtship, resulting in potential conflict during marriage (Britt & Huston, 2012;Furnham, 2014). ...
Article
Full-text available
Financial planning for marriage contributes to happier, more satisfying and longer-lasting unions. However, there is increasing evidence that young Malaysian couples are burdened by excessive debts and have a tendency to overspend on their wedding. Based on the Theory of Planned Behaviour, the current study investigates key factors — financial literacy, attitude towards money, attitude towards debt, financial goals and social influence — that are likely to influence the degree of financial planning for marriage undertaken by married and soon-to-be-married couples. The study also examines the mediating role of financial literacy on the relationships between the aforementioned key factors and financial planning for marriage. The study collected data from a sample of 201 respondents recruited via purposive sampling and used a bootstrapped partial least squares structural equation modelling (PLS-SEM) approach for data analysis. The results showed that (i) financial literacy positively influences financial planning for marriage; (ii) attitude towards money, financial goals and social influence positively influence both financial literacy and financial planning for marriage; (iii) attitude towards debt has a negative influence on financial planning for marriage but no influence on financial literacy; and (iv) financial literacy has a mediating effect. The findings highlight the importance of financial counselling, education as well as discipline in bringing about successful marriages.
... Two inescapable factors complicate the fee-raising process: the power imbalance inherent in the therapy relationship and transference. Patients know at some level of consciousness that they are paying to be loved (Furnham, 2014). This fact increases patients' sense of vulnerability with regard to a proposed/announced fee increase. ...
Article
Full-text available
This paper discusses the experience of psychodynamically oriented therapists in private practice as they contemplate raising their fees. Raising fees stirs up competing self-interest, transference-countertransference reverberations, financial fantasies and realities, ethical concerns, and uncomfortable as well as satisfied self-reflection. These dynamics are discussed under the following categories: exercise of power; incurring guilt; inappropriate entitlement; fear of loss; modeling of self-care; rapaciousness; unconscious factors; and self-esteem. A cautionary case example is provided. Six suggestions are offered to make therapists' contemplation of raising fees less stressful. The author hopes that this article will foster more open discussions among therapists about the tensions involved in raising fees and, in the process, lead to an enhanced understanding, acceptance, and detoxification of the feelings involved.
... Perhaps parents who save tend to explicitly (e.g., direct instructions and explanations) and/or implicitly (e.g., during spontaneous conversations) emphasize the importance of their specific saving goals, and their children who learn from them may, in turn, adopt these goals themselves. As in many countries around the globe (Furnham, 2014;Trachtman, 1999), finances are considered a strictly private (even taboo) issue in Slovenia and are rarely discussed outside the family. Thus, the role of parents might be particularly vital in financial matters. ...
Article
Full-text available
Spending money within the budget, financial planning, and saving represent important positive financial behaviors that contribute to financial satisfaction of emerging adults, which in turn predicts their satisfaction with life. In a mixed method study of Slovenian first-year university students (N = 515) and one of their parents, we qualitatively and quantitatively analyzed multi-informant survey data collected online on their motivation to save money and the factors that influence the students' choice (demographics, parental saving, and parental financial socialization). More than half of the freshmen and their parents saved money, mostly for long-term financial goals, larger investments, financial security in the future, and with self-gratification motives. Saving and the motives for saving were moderately associated within the student-parent dyads: The students whose parents saved tended to save themselves, and the saving motives of parents and their emerging adult children also showed similarities. The role of parents as agents of financial socialization in the students' healthy financial behavior was supported by significant associations between the students' recollection of parental socialization practices (direct financial teaching and financial monitoring) and their money saving. Supplementary information: The online version contains supplementary material available at 10.1007/s10834-021-09789-x.
... ex., Arnoux-Nicolas et al., 2016;Bendassolli e Gondim, 2014;Borges e Tamayo, 2001) e do dinheiro (p. ex., Baker e Hagedorn, 2008;Furnham, 2014;Moreira e Tamayo, 1999) caracterizá-los como fenômenos multidimensionais, complexos e dinâmicos, exigindo uma compreensão que considere os diversos aspectos da realidade social. Nesse sentido, tendo como fio condutor as mudanças macroestruturais na economia do país já sinalizadas, revisitei a literatura especializada sobre ambas as temáticas, buscando, agora, elementos que indicassem a influência de níveis explicativos mais amplos sobre os fenômenos investigados. ...
Article
Full-text available
The main objective of this thesis is to investigate what functions the meanings of work and money fulfill in the lives of construction workers. Both are characterized as multidimensional, complex, and dynamic phenomena, requiring an understanding that considers the different aspects of social reality. To achieve this goal, I chose a triangulation method — literature review research, administration of structured questionnaires and semi-structured interviews. The results indicated the importance of integrating different levels of analysis in the understanding of phenomena; the influence of macroeconomic contexts in the production of meanings of work and money; the identification of the functions of these meanings in structuring axes (social insertion-inclusion versus social exclusion; achievement and sense of utility versus resignation), which reflected the contradictions experienced in daily life by these workers, derived from the economic crisis in the sector. New research is suggested in which cultural and historical dimensions are included.
... The more an individual is motivated by extrinsic factors the more organizations need to do to satisfy those needs. It seems that while extrinsic factors like the "total remuneration package" tend to attract people to jobs and organizations it does not have the power to retain them (Furnham, 2014). ...
Article
Full-text available
The current study investigates the factor structure of the Work Values Questionnaire (WVQ) which measures how important each of 44 different features of a job are to the respondent. Over 750 international working professionals, primarily from the UK, completed a survey which included the WVQ, and measures of self‐perceived success. Factor analysis (both exploratory and confirmatory) was conducted to extract factors and facets. Structural equation modeling was used to compare model fit, and the extracted facets were regressed on subjective work success. The results show that the scales fit a coherent and interpretable model with two factors and six facets, fitting an intrinsic–extrinsic factorial structure, consistent with previous research. Work values and demographics accounted for between 13% and 17% of the variance in subjective work success. Three facets were significant predictors of work success: the intrinsic facets Affiliation and Recognition were positive predictors, and the extrinsic facet Security was a negative predictor, of perceived work success. Limitations and implications of this research are considered.
... There are many measures of attitudes to money in the literature (e.g., Furnham and Argyle, 1998; Opsahl and Dunnette, 1966; Wernimont and Fitzpatrick, 1972). Tang and his associates investigated the meaning of money based on the ABC model of an attitude with affective, behavioural and cognitive components, and developed several versions of the multidimensional Money Ethic Scale or MES (Tang, 1992; Tang et al., 2000). ...
Article
Full-text available
Demonstrating the equivalence of constructs is a key requirement for cross-cultural empirical research. The major purpose of this paper is to demonstrate how to assess measurement and functional equivalence or invariance using the 9-item, 3-factor Love of Money Scale (LOMS, a second-order factor model) and the 4-item, 1-factor Pay Level Satisfaction Scale (PLSS, a first-order factor model) across 29 samples in six continents (N=5973). In step 1, we tested the configural, metric and scalar invariance of the LOMS and 17 samples achieved measurement invariance. In step 2, we applied the same procedures to the PLSS and nine samples achieved measurement invariance. Five samples (Brazil, China, South Africa, Spain and the USA) passed the measurement invariance criteria for both measures. In step 3, we found that for these two measures, common method variance was non-significant. In step 4, we tested the functional equivalence between the Love of Money Scale and Pay Level Satisfaction Scale. We achieved functional equivalence for these two scales in all five samples. The results of this study suggest the critical importance of evaluating and establishing measurement equivalence in cross-cultural studies. Suggestions for remedying measurement nonequivalence are offered.
Article
Full-text available
The following article addresses the complex nature of informal exchange in contemporary Russia. I borrow the term “brift” from Abel Polese in order to analyze a hybrid nature of informal transactions that have a ternary nature embodying bribery, gift-giving, and a mechanism of building social capital. While there exists a wealth of studies on informal exchange in Post-Soviet states and modern Russia, the question of how participants of the exchange make sense of the transactions and conditions of the exchange, how they morally and mentally estimate the value and price of the favors, and how they choose appropriate items for reciprocating for the favors still remains understudied. The study addresses this theoretical dilemma and provides a detailed investigation of the meaning-making process intrinsic to this type of informal transactions. The article provides analysis of the in-depth interviews with citizens of St. Petersburg and demonstrates the complexity of the cognitive work of calculating the right price and estimating the proper value and fitness of the items to be used in the brift transactions. This research generally points to the need for a greater sensitivity to intricacies of meaning, practice, and cognitive work that saturate informal exchange, and further calls for a wider acceptance of the concept of brift.
Article
Robert King Merton’s article published in Science popularized the Matthew Effect: “For to everyone who has, more will be given and he will grow rich; but from the one who has not, even what he has will be taken away” (Matthew 25:29). The Matthew Effect prevails at the individual, organization-industry, and country-global levels. This interdisciplinary review connects the Holy Bible with agency theory, tournament theory, corporate social responsibility (CSR), prospect theory, behavioral economics, the psychology of money, and business ethics in the literature. I expand the Matthew Effect, incorporate prospect theory and the love of money (1 Timothy 6:9–10), and develop a multi-level theory of the Matthew Effect in Monetary Wisdoms: Individual decision-makers apply their deep-rooted values (avaricious monetary aspiration, the love of money attitude) as a lens, frame the critical concerns in the immediate and omnibus contexts, and maximize expected utility and ultimate serenity-happiness across people, context, and time at the individual, organization-industry, and country-global levels. The rich (with talents, integrity, character, and wisdom) serve God, enjoying the ultimate joy and happiness. The poor serve mammon, destroying their lives. The rich get richer. The poor get poorer. Scholars of business ethics and CSR must explore this phenomenon in future studies.
Article
Russian academic literature is characterised by a lack of data on the features of the economic behaviour of representatives of the indigenous small-numbered peoples of the North, Siberia, and the Far East of the Russian Federation (hereinafter referred to as ISNPN, the indigenous minorities). Nevertheless, economic, environmental, geopolitical, and social changes in the Arctic region of Russia make it extremely relevant to study the process of transformation of the economic behaviour of these peoples. The article presents the results of a study of the main strategies of economic behaviour of the indigenous peoples (Nenets, Dolgans, Itelmens, Koryaks, Nivkhs, Chukchi, and Evens) and the impact of these strategies on their subjective well-being. In this way, factor analysis made it possible to identify 4 factors that can be interpreted as independent strategies of the economic behaviour of the ISNPN: the saving strategy based on financial knowledge and activity; the strategy of independent financial achievements; the restrictive strategy in the economic sphere based on rationality and independence, and the strategy of hired labour. The article notes that the regression analysis demonstrated particular importance of the saving strategy based on financial knowledge and activity, which makes the greatest contribution to increasing subjective well-being of the indigenous peoples. It has been noted that a peculiarity of the economic behaviour of the ISNPN representatives is the predominance of an orientation towards savings and rationality in almost all identified strategies. The results of the study are summarised in the conclusion, and a deduction about the significant role of increasing financial literacy in improving subjective well-being of indigenous minorities is drawn
Article
Full-text available
The study examines how an economic concept changes when children undergo different kinds of experiences simulated by means of tutorial and critical training. The final sample was composed of 68 third-grade Italian children, subdivided into a control group (given only a pre and post-test interview about buying and selling) and three experimental groups which were taught, by some different training procedures, that the shopkeeper can earn a profit by selling goods at a price higher than that which he paid for them. Results showed that experimental groups progressed, but not dramatically. An analysis of children's reactions during critical training pinpointed some difficulties that must be overcome in order to acquire the notion of profit.
Article
Considers the question of how the payment of fees by clients for psychotherapy and related psychological services influences therapeutic outcomes. Psychoanalytic theory and cognitive dissonance theory suggest that clients who pay for psychotherapy will benefit more than those who pay nothing. This question and related issues are discussed with reference to observations and experimental studies that have explored how fees influence psychotherapy. Presently, sufficient evidence does not exist either to support or refute most of the hypotheses that have been generated, including the one that clients who pay a fee benefit more than those who pay nothing. Explanations for this void in the research literature and suggestions for expanding the understanding of this domain are provided. (29 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)