--Original published at Manami PSY105blog
Summary
A journal of Behavioral Decision Making published by the University of Michigan suggests that 5 to 10-year-old children have the same habits of saving/spending money called “tightwads” and “spendthrifts” as well as the adults do. Firstly, they predicted that children’s tendency of consuming can be measured based on their feeling whether they like to spend money or not. In addition, it was expected that children’s skill of decision making to shop can be educated and improved by understanding when and how children have stable consuming reactions.
In the study if children’s consuming behavior, 225 children at age of 5 through 10-year-old were assigned with almost equal number of boys and girls. Children under age 5 were assumed to lack the ability to explain their feelings accurately. One of participants’ parents also took a questionnaire about the spending/saving tendencies of their children.
There were five tasks for each child participant who assigned randomly. The first task called “ST-TW scales” showed a child two toy characters that said things “I feel mostly good when I spend money” and “I feel mostly bad when I spend money” twelve times. The child was told to choose the one that is more like his/her feelings. In addition, the researchers conducted two tasks to measure inhibitory control and financial understanding using their prior understanding of math. In “Sensitive to opportunity costs”, they asked children to pick from two options: did they want to save money for a new toy as the birthday gift or buy a candy? These four tasks were given participants in random order. Final tasks called “Observed money saving/spending behavior” was conducted to observe whether the child spent a given dollar for the bag of toys or take it home or not.
In the results, researchers found only 5-year-old children have tendencies of money-related behaviors based on their feelings as well as adults do. It was also clear that parents spending/saving habits relate to children’s habits according to ST-TW scales. Besides this, 51 percent of children who decided to spend a dollar for their toy bags had high score of ST-TW scale, which shows they are likely to be spendthrifts from their desire. The researchers also indicate that some children spend money without feeling of pain beyond desire what they want in their journal.
In addition, there were several limitations. For example, although first task’s pictures had emotional words such as happy and boring regarding spending habits, they should have focused on impulsive or careless consuming. Moreover, the research cannot be generalized because they have only 200 results whose participants were mostly white due to the location where the research conducted from the limitations in the journal.
In conclusion, people have spending/saving habits since they were only 5-year-olds. The result may help to design the financial education to children by focusing on how emotions influence on their consuming behaviors.
Citations:
Lisa, W. (2018, September 3). A Spendthrift 5-Year-Old? Researchers Say Yes. Retrieved from https://www.wsj.com/articles/a-spendthrift-5-year-old-researchers-say-yes- 1536026460?mod=searchresults&page=1&pos=9
Craig, E.S. Susan, A. G. Scotto, I. R. (2017, December 28). Spendthrifts and Tightwads in Childhood: Feelings about Spending Predict Children’s Financial Decision Making. Retrieved from https://onlinelibrary.wiley.com/doi/epdf/10.1002/bdm.2071?mod=article_inline
Reflection
In this media production assignment, I focused on five critical questions to choose what is important contents. It was not difficult to figure out whether original research journal tells readers answers of questions accurately thanks to the previous assignment: scholar research critique. I suggested what the study found and how it is measured at first because the result that little kids have similar consuming responses to adults especially their parents have is beneficial to improve financial education. I empathized the associations between “ST-TW scale” and “Observation money spending/saving behavior” because it was the most useful result to support researcher’s prediction as well as the news article, “A Spendthrift 5-Year-Old? Researchers Say Yes,” by Lisa Ward.
I also did not include the detail information of other tasks because they did not have beneficial results and the correlation with the children spending/saving tendencies based on their emotions directly. I added information about participants and limitations of the experiment which news article does not mention by following to some critical questions: how do they selected and assigned participants and are the conclusions generalized to the right populations. It is important to explain why under 5-year-old children were not be assigned and there was no diversity of participants to be generalized. I learned people cannot know what research found in detail sometimes by just reading news articles, although they can catch the brief concept of the research and what was the result. In addition, it was not easy to answer all critical questions clearly and catch attention of readers. It was good to know that even original research journal has a lack of information to answer questions.