The Life You Save (For): Experiences Dominate Goods in Motivating Savings

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Interdisciplinary Centers, Units and Projects::Penn Population Studies Centers::Population Center Working Papers (PSC/PARC)
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Discipline
Social and Behavioral Sciences
Subject
experiential
material
saving
financial decision making
versatility
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This research was supported by the Wharton Behavioral Lab and Quartet Pilot Research Project Funding awarded to Siyuan Yin. The project described received funding from the TIAA Institute and the Pension Research Council of the Wharton School at the University of Pennsylvania.
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2025-10-29
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Donnelly, Grant
Lamberton, Cait
Norton, Michael I.
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Abstract

Prior research suggests that when consumers think about spending, experiences tend to take priority over goods. But does this experiential dominance extend to motivation to save, which requires long-term planning and constant motivation to achieve their goal in the future? Across two field studies and six preregistered experiments, consumers are more motivated to initiate a savings goal, save toward, and protect their progress toward experiential versus material goals. Further, analyses of real saving behavior further support experiential dominance in success rates and persistence in streaks. We suggest that this effect arises because consumers perceive experiential goals as more versatile, which can be adapted to satisfy more needs and better accommodate the uncertain preferences of their future selves. Supporting this account, we demonstrate that the effect of experiential (vs. material) goals is stronger over a longer goal period and is less subject to goal gradient effects. Further, we reveal the effect is moderated by goal specificity. Together, these findings demonstrate that goals that are either related to or framed in terms of experiences better motivate savings, making both the encouragement of experiential goals and experiential framing a useful tool for policymakers, researchers, and consumers. focusing on promoting saving and improving financial well-being.

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Population Center Working Paper (PSC/PARC), 2025-122
Publication date
2025-10-29
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Yin, Siyuan, Grant Donnelly, Cait Lamberton and Michael I. Norton. “The Life you Save (For): Experiences Dominate Goods in Motivating Savings.” University of Pennsylvania. Population Center Working Paper (PSC/PARC), 2025-122.
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