The association between saving disposition and financial distress: A genetically informed approach

Alexandros Giannelis; Emily A Willoughby; Robin Corley; Christian Hopfer; John K. Hewitt; William G. Iacono; Jacob E Anderson; Aldo Rustichini; Scott I. Vrieze; Matt McGue; James J Lee

doi:10.1016/j.joep.2023.102610

The association between saving disposition and financial distress: A genetically informed approach

Alexandros Giannelis, Emily A Willoughby, Robin Corley, Christian Hopfer, John K. Hewitt, William G. Iacono, Jacob E Anderson, Aldo Rustichini, Scott I. Vrieze, Matt McGue, James J Lee

Research output: Contribution to journal › Article › peer-review

3 Scopus citations

Abstract

Saving disposition, the tendency to save rather than consume, has been found to be associated with economic outcomes. People lacking the disposition to save are more likely to experience financial distress. This association could be driven by other economic factors, behavioral traits, or even genetic effects. Using a sample of 3,920 American twins, we develop scales to measure saving disposition and financial distress. We find genetic influences on both traits, but also a large effect of the rearing family environment on saving disposition. We estimate that 44% of the covariance between the two traits is due to genetic effects. Saving disposition remains strongly associated with lower financial distress, even after controlling for family income, cognitive ability, and personality traits. The association persists within families and monozygotic twin pairs; the twin who saves more tends to be the twin who experiences less financial distress. This result suggest that there is a direct association between saving disposition and financial distress, although the direction of causation remains unclear.

Original language	English (US)
Article number	102610
Journal	Journal of Economic Psychology
Volume	96
DOIs	https://doi.org/10.1016/j.joep.2023.102610
State	Published - Jun 2023

Bibliographical note

Funding Information:
This work was supported by the National Institute on Drug Abuse, USA at the National Institutes of Health [ DA042755 , DA046413 , DA005147 , DA013240 , DA036216 , DA037904 , DA032555 , DA035804 , DA011015 , DA012845 , DA038065 ]; the National Institute on Alcohol Abuse and Alcoholism, USA at the National Institutes of Health [ AA009367 , AA023974 ]; and the National Institute of Mental Health, USA at the National Institutes of Health [ MH066140 ]. All authors read and approved the final manuscript.

Publisher Copyright:
© 2023 Elsevier B.V.

Keywords

Genetics
Income
Saving
Twins

PubMed: MeSH publication types

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10.1016/j.joep.2023.102610

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title = "The association between saving disposition and financial distress: A genetically informed approach",

abstract = "Saving disposition, the tendency to save rather than consume, has been found to be associated with economic outcomes. People lacking the disposition to save are more likely to experience financial distress. This association could be driven by other economic factors, behavioral traits, or even genetic effects. Using a sample of 3,920 American twins, we develop scales to measure saving disposition and financial distress. We find genetic influences on both traits, but also a large effect of the rearing family environment on saving disposition. We estimate that 44% of the covariance between the two traits is due to genetic effects. Saving disposition remains strongly associated with lower financial distress, even after controlling for family income, cognitive ability, and personality traits. The association persists within families and monozygotic twin pairs; the twin who saves more tends to be the twin who experiences less financial distress. This result suggest that there is a direct association between saving disposition and financial distress, although the direction of causation remains unclear.",

keywords = "Genetics, Income, Saving, Twins",

author = "Alexandros Giannelis and Willoughby, {Emily A} and Robin Corley and Christian Hopfer and Hewitt, {John K.} and Iacono, {William G.} and Anderson, {Jacob E} and Aldo Rustichini and Vrieze, {Scott I.} and Matt McGue and Lee, {James J}",

note = "Funding Information: This work was supported by the National Institute on Drug Abuse, USA at the National Institutes of Health [ DA042755 , DA046413 , DA005147 , DA013240 , DA036216 , DA037904 , DA032555 , DA035804 , DA011015 , DA012845 , DA038065 ]; the National Institute on Alcohol Abuse and Alcoholism, USA at the National Institutes of Health [ AA009367 , AA023974 ]; and the National Institute of Mental Health, USA at the National Institutes of Health [ MH066140 ]. All authors read and approved the final manuscript. Publisher Copyright: {\textcopyright} 2023 Elsevier B.V.",

year = "2023",

month = jun,

doi = "10.1016/j.joep.2023.102610",

language = "English (US)",

volume = "96",

journal = "Journal of Economic Psychology",

issn = "0167-4870",

publisher = "Elsevier B.V.",

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T1 - The association between saving disposition and financial distress

T2 - A genetically informed approach

AU - Giannelis, Alexandros

AU - Willoughby, Emily A

AU - Corley, Robin

AU - Hopfer, Christian

AU - Hewitt, John K.

AU - Iacono, William G.

AU - Anderson, Jacob E

AU - Rustichini, Aldo

AU - Vrieze, Scott I.

AU - McGue, Matt

AU - Lee, James J

N1 - Funding Information: This work was supported by the National Institute on Drug Abuse, USA at the National Institutes of Health [ DA042755 , DA046413 , DA005147 , DA013240 , DA036216 , DA037904 , DA032555 , DA035804 , DA011015 , DA012845 , DA038065 ]; the National Institute on Alcohol Abuse and Alcoholism, USA at the National Institutes of Health [ AA009367 , AA023974 ]; and the National Institute of Mental Health, USA at the National Institutes of Health [ MH066140 ]. All authors read and approved the final manuscript. Publisher Copyright: © 2023 Elsevier B.V.

PY - 2023/6

Y1 - 2023/6

N2 - Saving disposition, the tendency to save rather than consume, has been found to be associated with economic outcomes. People lacking the disposition to save are more likely to experience financial distress. This association could be driven by other economic factors, behavioral traits, or even genetic effects. Using a sample of 3,920 American twins, we develop scales to measure saving disposition and financial distress. We find genetic influences on both traits, but also a large effect of the rearing family environment on saving disposition. We estimate that 44% of the covariance between the two traits is due to genetic effects. Saving disposition remains strongly associated with lower financial distress, even after controlling for family income, cognitive ability, and personality traits. The association persists within families and monozygotic twin pairs; the twin who saves more tends to be the twin who experiences less financial distress. This result suggest that there is a direct association between saving disposition and financial distress, although the direction of causation remains unclear.

AB - Saving disposition, the tendency to save rather than consume, has been found to be associated with economic outcomes. People lacking the disposition to save are more likely to experience financial distress. This association could be driven by other economic factors, behavioral traits, or even genetic effects. Using a sample of 3,920 American twins, we develop scales to measure saving disposition and financial distress. We find genetic influences on both traits, but also a large effect of the rearing family environment on saving disposition. We estimate that 44% of the covariance between the two traits is due to genetic effects. Saving disposition remains strongly associated with lower financial distress, even after controlling for family income, cognitive ability, and personality traits. The association persists within families and monozygotic twin pairs; the twin who saves more tends to be the twin who experiences less financial distress. This result suggest that there is a direct association between saving disposition and financial distress, although the direction of causation remains unclear.

KW - Genetics

KW - Income

KW - Saving

KW - Twins

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The association between saving disposition and financial distress: A genetically informed approach

Abstract

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