Your Money or Your Life: Behavioral and Emotional Predictors of Money Pathology

Abstract

This study sought to examine self-reportedemotional and behavioral correlates of money pathology,defined as inappropriate behavior with respect to moneyand associated material goods. In all, 267 British adult subjects completed a battery ofquestionnaires including Rubinstein's (1981) extensivePsychology Today survey on money and Forman's ipsativemeasures that describe five Money Pathology Scales(miser, spendthrift, tycoon, bargain hunter, gambler),an overall pathology scale combining the five and hisshort moneysanity measure. The former measure was factoranalyzed and selected factor scores regressed on to the moneysanity measure along withdemographic measures in order to attempt to establishwhich individual difference factors best predicted thedifferent types of money pathology. Thus females were more extravagant, prone to depression, but lesslikely to take moral risks for money, while richer, moreright-wing people tended to be more materialistic. Thosewith overall less “money sanity” tended more to believe luck and dishonesty were moreimportant in making money; were self-denying andeconomically pessimistic, and had powerful negativeemotions like anger and anxiety around money. Multiple regressions on to the money types showed thatbetween 15 and 30% of the variance could be explainedand accounted for, by the selected independent variables(demographic, religious and political belief, illness, and more general attitudes towardwealth). Demographic variables like age, and negativeemotions about money were consistent predictors of moneypathology. Results are discussed in terms of the small, but growing literature on the psychologyof money (Furnham, 1997; Furnham & Argyle,1998).