Big-Picture Thinking May Improve Americans' Financial Decision Making, Mitigate Effects of Stress According to New Study from Capital One and The Decision Lab
"We partnered with
The Impact of Stress on our Minds and Money
Study participants were randomly assigned to one of the three conditions of the experiment: an abstract thinking, concrete thinking or control condition and then completed a series of questionnaires aimed at investigating financial attitudes, behaviors, and general and finance-specific stress levels.
The study found that financial stress caused:
- Feelings of fatigue (43%)
- Difficulty concentrating at work (42%)
- Sleep interferences (41%)
Stress is also linked to worse financial attitudes and practices. Even when controlling for household income and FICO scores, Americans who experience higher level of stress are:
- Less likely to save on a regular basis
- Less likely to plan their spending
- Less likely to feel in control
- More impulsive with how they spend their paycheck
- Less likely to agree that success comes to those who work hard
A Playbook of Practical Tips
- Keep your goals in front of you: We have a tendency to discount better future rewards for short-term gains. To overcome this, try keeping your goals front and center, like making them a screensaver on your phone.
- Focus on the values and don't sweat the details: We get lost comparing products to each other and lose track of how the products compare to our core values and goals. Next time you get absorbed in comparing a whole aisle full of different coffee makers or TVs, you can ask yourself: "How will this purchase affect my long-term goals? Is it consistent with what I want in life?"
- Don't punish yourself for the past—be kind to yourself when reviewing purchases: Next time you are thinking about a past purchase you are not happy about, try to accept it, acknowledge that it was a mistake, and formulate a plan to avoid it next time.
"As a professional athlete, I am aware of how stress can cloud my decisions on the field and my finances off the field," said
Leveraging Tools & Services From Capital One For Financial Success
- A free, confidential Money Coaching program, which is offered at Capital One Cafés. Side-by-side with a Certified Coach, create a personalized action plan, so you can better connect your life and money goals. It is open to everyone, whether you are a
Capital Onecustomer or not. Since launching in 2017, 72% of participants have reported reduced stress after attending a session.
- CreditWise from
Capital Oneis a free credit monitoring tool that helps users understand, improve and monitor their credit. Capital Onecustomer or not, anyone can enroll in CreditWise.
For more practical tips for developing a healthy financial mindset, visit https://capital.one/momprn20
The Mind over Money Study was conducted by
About Capital One
View original content to download multimedia:http://www.prnewswire.com/news-releases/big-picture-thinking-may-improve-americans-financial-decision-making-mitigate-effects-of-stress-according-to-new-study-from-capital-one-and-the-decision-lab-300993872.html
Laura Jacobs, Senior Corporate Communications Manager, email@example.com; Annie Ronquillo, Corporate Communications Manager, firstname.lastname@example.org