Materialism, Quality of Life & Financial Planning

1. Materialism, Quality of Life & Financial Planning Tim Kasser, Ph.D.

2. Advertisements

3. Political Discourse • “…the American people have got to go about their business. We cannot let the terrorists achieve the objective of frightening our nation to the point where we don’t conduct business, where people don’t shop” (reported in The New York Times, October 12, 2001)

4. Materialism’s allure • The percentage of incoming American First-year college students reporting it is “very important” or “essential” to be “financially well-off”: • 42% in the mid 1960s • 75% in the mid 2000s

5. Messages of Materialism Can purchase happiness Important to work and consume Life is meaningful and people are successful to the extent they have money, possessions, and the right image

6. Is this true? • Psychological costs • Social costs • Ecological costs • Financial costs

7. Measuring Materialism • Survey methods (e.g., Belk, 1985, Richins & Dawson, 1992) • Rate agreement with statements • Sample Items • My life would be better if I owned certain things I don’t have. • I like to own things that impress people. • I like a lot of luxury in my life. • I would rather buy something I need than borrow it from someone else.

8. Measuring Materialism • Values strategy (e.g., Kasser & Ryan, 1993, 1996) • Rate many goals, guiding principles, (e.g., family, spirituality, fun, etc.) • Sample materialistic items • You will have a job that pays well • You will have many expensive possessions • You will achieve the “look” you’ve been after • You will be admired by many people • Examine relative importance of goals • All of us are somewhat materialistic

9. Happiness

10. Higher: Anxiety Depression Physical Symptoms Unpleasant emotions Drug & Alcohol Use Lower Self-actualization Vitality Life Satisfaction Pleasant Emotions Diminished HappinessKasser & Ryan, 1993, 1996, 2001; Sheldon & Kasser, 1995, 1998, 2001

11. Types of people Middle & High School students College Students Adults Business People Countries Australia Denmark Germany Hungary India Russia Singapore S. Korea United Kingdom Found in many samples

12. Social Behavior

13. Social Behavior • Care less about: • Being helpful and loyal • Mature love and true friendship • Social justice and equality • Schwartz (1996) • More manipulative and competitive • McHoskey (1999); Sheldon et al., (2000) • Less pro-social and more anti-social behavior • Cohen & Cohen (1996); Kasser & Ryan (1993); McHoskey (1999)

14. Social Behavior - PrimingVohs et al. (2006) Unscramble sentences Control sentence: “cold it desk outside is” Money sentence: “high a salary desk paying”

15. Social Behavior - PrimingVohs et al. (2006) Unscramble sentences Control sentence: “it is cold outside” Money sentence: “a high paying salary”

16. Time spent helping

17. # Pencils Gathered

18. Ecological Behavior

19. Ecological Outcomes • Care less about the environment • Saunders & Munro (2000); Schwartz (1994) • Fewer pro-environmental behaviors • Brown & Kasser (2005); Gatersleben et al. (in prep); Kasser (2005); Richins & Dawson (1992) • More greed and consumption in resource-dilemma games • Kasser & Sheldon (2000); Sheldon & McGregor (2000)

20. Ecological Footprint • Number of acres people use to support their lifestyle • Transportation, food, housing • Brown & Kasser (2005) • Higher materialism, higher Ecological Footprint

21. Financial Behavior

22. Financial Behavior • Three options for money • Spend • Save • Share

23. Spending(Richins & Dawson, 1992) • If imagine a $20,000 windfall, high materialists spend $3,445 on buying for self vs. $1,106 for low materialists

24. Spending(Kasser et al. 2009) • In 92 adults, materialism associated with habits of: - using cash card, - going shopping to lift spirits - spending money one doesn’t have - buying because of the brand

25. Spending(Brown, Kasser et al., 2009) • 83 adults kept track of all spending behaviors >$5 for 3 weeks

26. Spending(Brown, Kasser et al., 2009) • 83 adults kept track of all spending behaviors >$5 for 3 weeks • Controlling for income, materialism associated with - More frequent discretionary purchases - More $ spent on necessary purchases

27. Saving(Kasser, 2005) • In sample of 206 adolescents, materialism associated with saving less of imaginary $100 windfall

28. Saving(Kasser et al., 2009) • In sample of 92 adults, materialism associated with: - Less thrifty personality - Losing sleep thinking about $ - Not following budget

29. Sharing(Richins & Dawson, 1992) • Imaginary windfall of $20K, high materialists give away $1822 vs. $4413 for low materialists

30. Sharing(Vohs et al. 2006) • Unscramble money vs. neutral sentences

31. Sharing(Vohs et al. 2006) Unscramble money vs. neutral sentences Gave subject $2 in quarters

32. Sharing(Vohs et al. 2006) Unscramble money vs. neutral sentences Gave subject $2 in quarters Asked for donation to University Student Fund

33. Amount Donated

34. Two-fold Strategy

35. Two-fold Strategy Materialism

36. Two-fold Strategy Materialism Causes

37. Two-fold Strategy Materialism Causes

38. Two-fold Strategy Materialism Causes Healthy Values

39. Two-fold Strategy Healthy Values Causes Material- ism

40. Causes of Materialism(Kasser et al. 2004) • Social Modeling • Higher if friends, parents, peers care • Higher if more television • Higher if live under neo-liberalism • Insecurity • Higher if cold parenting, divorce • Higher if poverty • Higher if thinking of death

41. Healthy ValuesGrouzet, Kasser et al. (2005) • Assessed aspirations in 11 domains • e.g., Spirituality, Hedonism, Affiliation, Health, etc. • >1800 College students in 15 nations • Circular Stochastic Modeling • Adjacent goals are consistent • Opposing goals are conflictual

45. Intrinsic ValuesKasser & Ryan (1996) • Self-acceptance “I will follow my interests and curiosity where they take me.” • Affiliation “I will express my love for special people.” • Community Feeling “I will help the world become a better place.”

46. Happiness • More happiness • More life satisfaction • Higher vitality • Less depression • Less anxiety • Fewer physical symptoms

47. Social Behavior • More prosocial behavior • More empathy • More cooperation • Less antisocial behavior

48. Ecological Behavior • More environmentally friendly behaviors • Lower Ecological Footprint • Less consumption in forest dilemma game

49. Two-fold Strategy Healthy Values Causes Material- ism

50. Avenues for Change • Conversations with clients - Responses to Insecurity - Voluntary Simplicity • Policy changes - Advertising - Indicators of Progress