A penny saved is a penny earned: How money-view and self-view jointly influence consumer financial behaviour

The prior literature suggests that money offers symbolic or exchange values, thereby directly or indirectly motivating behaviours (i.e., money as a direct or an indirect behavioural incentive). Building on this distinction, the current research argues that the way consumers perceive the value of money (i.e., money-view) affects their preferences for financial strategies in enhancing their financial positions. Specifically, our finding shows that consumers tend to prefer financial strategies that focus on financial gains (vs. losses) when they perceive money as a direct (vs. indirect) behavioural incentive (Study 1). We further show that consumers are more motivated to enhance their financial positions, that is, have a higher hypothetical savings rate (Study 2) or a higher self-reported savings rate (Study 3), when there is a fit between their preferences for financial strategies predicted by their money-views (e.g., direct or indirect) and by their self-views (e.g., independent or interdependent). This research contributes to existing knowledge on the psychology of money as well as consumer financial behaviour. Practically, the results offer valuable guidance in the development of more effective personal finance management.