How You Think About Money Affects What You Do With It

Money makes the world go round. University of Georgia researchers found that answering three questions can give you insight into your spending and potentially help you modify your behavior in the future.

In the study, researchers found a connection between how participants reported thinking about their finances and their financial behaviors. It also showed that improving financial knowledge, finding motivation to alter spending patterns and reducing anxiety about finances all resulted in increased positive financial behaviors.

The scientists say identifying situations when you’re likely to spend more could help predict triggers, and therefore help you avoid them. In addition, figuring out what drives you to spend or save the way you do can provide the motivation to make lasting changes to budgets.

The three questions you need to answer are: Can you predict the situations when you will spend more than you mean to?; Do you know what you should do differently to manage your money better?; and do you know what motivates you to spend or save the way you do?  (EurekAlert!)