The Effects of Financial Scarcity on  Working Memory Performance

In this study, we hypothesized that the financial scarcity mindset would lead to a lower working memory performance. Additionally, we also hypothesized that a sudden loss of money would lead to lower working memory performance than it would a longer period of financial scarcity. We experimentally induced financial scarcity by a financial task - the Household task and we operationalized working memory performance as participants’ scores on the backwards Corsi task. In an online experiment, 187 adult British participants were randomly assigned to four groups, which varied both in the amount of income they received and whether they received or did not receive a wealth shock. Although none of our hypotheses were confirmed, significant experimental manipulation results proved this study design is valid to use when experimentally inducing financial scarcity. We discussed the results and proposed that incentivizing people should be taken into consideration in future research and practice,...Show moreIn this study, we hypothesized that the financial scarcity mindset would lead to a lower working memory performance. Additionally, we also hypothesized that a sudden loss of money would lead to lower working memory performance than it would a longer period of financial scarcity. We experimentally induced financial scarcity by a financial task - the Household task and we operationalized working memory performance as participants’ scores on the backwards Corsi task. In an online experiment, 187 adult British participants were randomly assigned to four groups, which varied both in the amount of income they received and whether they received or did not receive a wealth shock. Although none of our hypotheses were confirmed, significant experimental manipulation results proved this study design is valid to use when experimentally inducing financial scarcity. We discussed the results and proposed that incentivizing people should be taken into consideration in future research and practice, as an important factor that might diminish the negative effects of financial scarcity on working memory performance.Show less

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The Effects of Financial Scarcity on Working Memory Performance