Big-Picture Thinking May Improve Americans' Financial Decision Making, Mitigate Effects of Stress According to New Study from Capital One and The Decision Lab
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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
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Laura Jacobs, Senior Corporate Communications Manager, firstname.lastname@example.org; Annie Ronquillo, Corporate Communications Manager, email@example.com