Agreeableness was associated with lower
savings, higher debt, and higher default rates.
Kind-hearted,
caring people may be more likely to suffer financial hardship, new research
shows.
A study
done by the American Psychological Association determined
that people who are more agreeable tend to face greater economic difficulties,
especially those at lower income levels.
The
study notes that past research has found personality traits linked to financial
habits, like neuroticism predicting higher debt rates or increased compulsive
buying, and conscientiousness tied to debt avoidance and increased
savings.
Since
agreeableness has previously been linked to lower income and credit scores,
researchers were curious if the trait was tied to other financial indicators
and why that might be, according to a news release on the
study.
With
the “big five” personality traits — agreeableness, neuroticism, extraversion,
conscientiousness and openness — in mind, researchers used surveys and data
from more than 3 million people to look for connections to financial outcomes,
per Newsweek.
It pays to be nice…or does it? New research
indicates that those who are more agreeable may be at greater risk of
bankruptcy and other financial hardships: https://t.co/3itUowTG2tpic.twitter.com/eu6O25JP0H
—
American Psychological Association (@APA) October 12, 2018
Study
co-author Joe Gladstone said agreeableness was
associated with lower savings, higher debt, and higher default rates.
“This
relationship appears to be driven by the fact that agreeable people simply care
less about money and therefore are at higher risk of money
mismanagement,” Gladstone said.
The
connection was much stronger for those with lower incomes, “who don’t have the
financial means to compensate for the detrimental impact of their agreeable
personality,” he continued.
Another finding: People who were more agreeable as children had
a greater chance of financial problems down the road. They also discovered
agreeable people were associated with a greater risk of bankruptcy.
“…While
there are many contexts in which being trusting and cooperative might produce
positive outcomes, agreeableness also has the potential to undermine the
pursuit of self-interest in situations of conflict and negotiation,” the study
notes.
Dr.
Alan Southern, senior lecturer in Management School at the University of
Liverpool in the U.K., told Newsweek the study perpetuates the myth that a lack
of entrepreneurial drive leads people to become poor.
Where
those who are financially savvy reside was at the heart of a recent Wallet Hub study.
The
study took into account residents’ median credit scores, credit card debt and
annual savings account averages, and found Massachusetts, New Hampshire, North
Dakota, Minnesota and Connecticut to be the top five savviest states.
Mississippi,
Arkansas, West Virginia, New Mexico and Oklahoma were ranked the least savvy.
No comments:
Post a Comment