Tightwads and spendthrifts: An interdisciplinary review

Abstract

JEL codes: M31, C91, D14, G41 Consumers rely on a "pain of paying" to help deter their spending. While this is beneficial for some consumers, others experience levels of pain that create problems. "Tightwads" experience too much pain when considering spending and therefore spend less than they would ideally like to spend. By contrast, "spendthrifts" experience too little pain and therefore spend more than they would ideally like to spend. Neither are happy with how they handle money. In the decade since the tightwadspendthrift construct was introduced, much has been learned about what it is and is not (e.g., frugality, greed), what contextual factors are likely to reduce its importance, how it plays a role within romantic relationships, and when it might first emerge in childhood. This paper reviews the wide range of interdisciplinary research relevant to the tightwad-spendthrift construct and proposes several directions for new research. K E Y W O R D Sconsumer financial decision making, credit cards, financial well-being, judgment and decision making, pain of paying, shopping

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