Age differences in financial decision making
T he benefits of more experience and less negative emotions
Bibliographic Data
| ID | 12166109 |
|---|---|
| Authors | Wiebke Eberhardt (0000-0002-2935-5353, Business Intelligence and Smart Services Institute Heerlen the Netherlands, corresponding author), W Bruine De Bruin (0000-0002-1601-789X, Centre for Decision Research, Leeds University Business School University of Leeds Leeds UK), Jonell Strough (0000-0001-9228-9742, Department of Psychology West Virginia University Morgantown West Virginia USA) |
| Year | 2018 |
| Volume | 32 |
| Issue | 1 |
| Pages | 79-93 |
| Publication date | 2018-08-13 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Behavioral Decision Making (JOURNAL) |
| Journal identifiers | ISSN: 0894-3257 • E-ISSN: 1099-0771 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/bdm.2097 |
| OpenAlex | W2886194887 |
| Language | EN |
| Citations received | 4 |
| References cited | 83 |
The emerging literature on aging and decision making posits that decision‐making competence changes with age, as a result of age differences in various cognitive and noncognitive individual‐differences characteristics. In a national life‐span sample from the United Kingdom ( N = 926), we examined age differences in financial decisions, including performance measures of sunk cost and credit card repayment decisions, and self‐report measures of money management and financial decision outcomes. Participants also completed four individual‐differences characteristics that have been proposed as relevant to financial decision making, including two cognitive ones (numeracy and experience‐based knowledge) and two noncognitive ones (negative emotions about financial decisions). First, we examined how age was related to the four financial decision‐making measures and the four individual‐differences characteristics. Older age was correlated to better scores on each of the four financial decision‐making measures, more experience‐based knowledge, less negative emotions about financial decisions, whereas numeracy and motivation were not significantly correlated with age. Second, we found that considering both the two cognitive and the two noncognitive individual‐differences characteristics increased predictions of financial decision making, as compared with considering either alone. Third, we examined how these four individual‐differences characteristics contributed to age differences in financial decision making. Older adults' higher levels of experience‐based knowledge and lower levels of negative emotions seemed to especially benefit their financial decision making. We discuss implications for theories on aging and decision making, as well as for interventions targeting financial decisions
Cognition · Competence (human resources · Economics · Numeracy · Sample (material · Aging and Gerontology Research · Financial Literacy, Pension, Retirement Analysis · Psychology · Retirement, Disability, and Employment · Social Psychology · Finance
The impact of financial decisions and manager characteristics to firm's financial performance in SMEs
Sunk-cost judgments across the child to adult lifespan
Processing mode and processing contents in older and younger adults’ sunk cost decision-making
Exploring gender differences in the financial literacy decision-making
The Efficient Assessment of Need for Cognition
What and When of Cognitive Aging
Assessing what to address in science communication
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The psychology of sunk cost
The Economic Importance of Financial Literacy
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Bias in cross-sectional analyses of longitudinal mediation.
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Retirement Saving Choices
Age and Self-Relevance Effects on Information Search During Decision Making
Aging and Memory for Numerical Information
Taking the Biggest First
Development and Testing of an Abbreviated Numeracy Scale
No Time to Waste
Age differences in moral judgment
Explaining adult age differences in decision‐making competence
Mental budgeting versus marginal decision making
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Decision‐making Competence, Executive Functioning, and General Cognitive Abilities
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The relationship of materialism to debt and financial well-being
Prevalence and Correlates of Emotional, Physical, Sexual, and Financial Abuse and Potential Neglect in the United States
Financial Literacy and Retirement Preparedness
Age‐Related Differences in Responses to Emotional Advertisements
The moderator–mediator variable distinction in social psychological research
The moderator-mediator variable distinction in social psychological research
Age-related differences and change in positive and negative affect over 23 years
Individual differences in adult decision-making competence
Emotional experience in everyday life across the adult life span
How numeracy influences risk comprehension and medical decision making
Development and Validation of an Internationally Reliable Short-Form of the Positive and Negative Affect Schedule (Panas)
Heart and Mind in Conflict
| Citations per year | 1.33 |
|---|---|
| Citation span | 2023 - 2025 (3) |
| Highly cited | No |