Can't Buy Me Love (or Friendship): Social Consequences of Financially Contingent Self-Worth

D.  Ward; L.E.  Park; K.  Naragon-Gainey; H.  Jung; A.V.  Whillans

Article | Personality and Social Psychology Bulletin | Forthcoming

Can't Buy Me Love (or Friendship): Social Consequences of Financially Contingent Self-Worth

by D. Ward, L.E. Park, K. Naragon-Gainey, H. Jung and A.V. Whillans

Abstract

Although people may think that money improves one’s relationships, research suggests otherwise. Focusing on money is associated with spending less time maintaining relationships (Whillans & Dunn, 2018) and less desire to rely on others for help (Vohs, Mead, & Goode, 2006). But why does focusing on money relate to worse social outcomes? We propose that when people base their self-esteem on financial success – i.e., have financially contingent self-worth – they are likely to feel pressured to pursue success in this domain, which may come at the expense of spending time with close others. Consistent with this idea, results of four cross-sectional studies (N=2,439) and a daily diary study (N=246) revealed that basing one’s self-worth on financial success is associated with greater feelings of loneliness and social disconnection, and this may be related to experiencing less autonomy and spending less time with family and friends.

Keywords: Self-Esteem; Money; Relationships; Welfare or Wellbeing;

Format: Print

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Citation:

Ward, D., L.E. Park, K. Naragon-Gainey, H. Jung, and A.V. Whillans. "Can't Buy Me Love (or Friendship): Social Consequences of Financially Contingent Self-Worth." Personality and Social Psychology Bulletin (forthcoming). (Pre-published online March 19, 2020.)

Using a multi-method approach, we investigate whether income volatility is associated with financial impatience—the preference to receive a small sum of money immediately over a larger sum of money later. We find that experiencing more income volatility—including a higher frequency of either income dips or spikes – is associated with greater financial impatience. Using longitudinal data on biannual income, Study 1 demonstrates that this effect operates above and beyond individual differences in income risk preferences and wealth. Study 2 conceptually replicates these correlational findings with recent month-to-month income volatility and finds that this effect occurs primarily among people who report having little control over their finances. Using a longitudinal field experimental with low-income working women, Study 3 tests for a causal effect of an externally-induced spike in monthly income on changes in financial impatience. In a pre-post test experimental design, participants randomly assigned to receive cash transfers amounting to a median monthly income spike of 29% exhibit significantly greater financial impatience compared to a control condition in which participants receive no cash transfers. We conclude by discussing the implications of these findings for employers and policymakers.

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Can't Buy Me Love (or Friendship): Social Consequences of Financially Contingent Self-Worth

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