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People save more when they feel powerful

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IANS Washington
Last Updated : Jun 26 2014 | 12:49 PM IST

While most people believe education, upbringing, and self-control are major contributors to a person's savings habits, researchers have found that people save more when they feel powerful.

In five studies, the researchers found that when made to feel powerful, the amount of money someone is willing to save for the future increases.

"People who feel powerful use saving money as a means to maintain their current state of power," said Emily N. Garbinsky from Stanford University in the US.

In one study, some participants were made to feel powerful and were asked to sit in a tall chair.

Other participants were made to feel powerless and were asked to sit on a low ottoman chair.

All participants were asked to respond to some questions and were then given the option to either collect their study compensation in cash or to put it in a lab savings account.

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Results showed that the individuals who sat in the tall chair saved more of their money than those who sat on the low ottoman chair.

The findings appeared in the Journal of Consumer Research.

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First Published: Jun 26 2014 | 12:40 PM IST

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