Affiliation:
1. School of Financial Planning College of Human Sciences, Texas Tech University Lubbock Texas USA
2. Department of Educational Psychology Leadership, & Counseling, College of Education, Texas Tech University Lubbock Texas USA
Abstract
AbstractAn individual might have a net worth of $10,000 and believe they are in great shape financially, while another individual might have $100,000 and feel otherwise. Could personality explain this disparity between perception and reality of their financial situation? This study answers this research question using data from the 2018 Health and Retirement Study (HRS). Findings from this study show that conscientious and extraverted consumers believe they are doing better than they are. Conversely, consumers who exhibit traits relating to neuroticism, openness to experience, and agreeableness think their financial situation is worse than it is. These findings have implications for consumers, professional advisors, and policymakers.
Subject
General Economics, Econometrics and Finance,Sociology and Political Science