The present study examines the effect of financial scarcity on cognitive performance by not only measuring the objective, but also the subjective aspect of scarcity, contrary to earlier research in...Show moreThe present study examines the effect of financial scarcity on cognitive performance by not only measuring the objective, but also the subjective aspect of scarcity, contrary to earlier research in this field. Cognitive performance was measured by means of a cognitive control task and a working memory task. A moderating effect of cognitive load was tested by randomly assigning participants into either a ‘difficult’ or ‘easy’ condition, determining the level of difficulty of the financial scenarios they had to solve. This effect could not be rejected, nor supported. By use of the Psychological Inventory of Financial Scarcity (PIFS), this study finds support for the relationship between subjective financial scarcity and cognitive performance. More specifically, we demonstrate an effect on cognitive control, while no support was found an effect on working memory. This study underwrites the importance of a measurement of subjective financial scarcity and encourages future research to uncover the true impact of the cognitive load in the minds of the poor.Show less