Newswise — While news media across the country are documenting the changes in personal spending triggered by recent economic turmoil, researchers at the Florida State University College of Business are examining the effects of saving and spending philosophies established prior to the recession on work and home life.
Wayne Hochwarter, Florida State’s Jim Moran Professor of Management, and research associate Christian Ponder examined the saving and spending philosophies of more than 1,500 full-time employees who experienced increased job insecurity over the past 12 months.
“At some point, all of us have been told the importance of saving money for a rainy day,” Hochwarter said. “We were interested in comparing work and home anxiety of both ‘spenders’ and ‘savers’ to see if the message still rings true when faced with work uncertainty.”
Statistically significant results confirmed the value of family thriftiness. Compared to financially conservative individuals (savers), less thrifty employees (spenders):
* Experienced less enjoyment in the tasks they performed at work;* Were less interested in seeking out ways to improve the company;* Had difficulty concentrating on tasks and were more easily distracted;* Reported that completion of job tasks has been repeatedly delayed because of increased job-search activity at work;* More frequently reported that work was “nerve-racking”;* More work-family imbalance;* Were increasingly concerned that future financial obligations will go unmet;* Felt more downhearted and irritable at work; and* More frequently acknowledged having a “shorter fuse” at home.
“The research also confirmed that less-conservative employees set aside fewer financial resources to cushion the family in the event of an emergency or change in work status,” Ponder said.
For example, less-conservative workers indicated they would maintain a comparable standard of living for 10 months, on average, in the event of a layoff, with almost half reporting one month or less. On the other hand, conservative employees reported almost five years of continued lifestyle. Hochwarter concludes that the documented long-term financial status of less-frugal individuals was not surprising but unfortunate.
“Unquestionably, companies will benefit by helping employees recognize the value of thriftiness and teaching tangible financial management skills,” he said. “Our research confirms that doing so may contribute to higher levels of performance and more-stable home relations.”
Despite its confirmed benefits, the researchers recognize that thriftiness is frowned upon in American culture, with those opting to save rather than spend often ostracized by their peers.
“Sadly, our past research shows that society determines an individual’s worth and success more by the accumulation of toys, cars and houses that many are simply unable to afford than by personal character and dedication to one’s family,” Hochwarter said. “Perhaps a silver lining of recent economic woes will be a renewed commitment to the latter rather than the former.”
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