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

Penn collection
The Wharton School::Wharton Pension Research Council::Wharton Pension Research Council Working Papers
Degree type
Discipline
Economics
Subject
Experiential
Material
Saving
Financial decision-making
Versatility
Funder
Grant number
Copyright date
2025-10-28
Distributor
Related resources
Contributor
Donnelly, Grant
Lamberton, Cait
Norton, Michael
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.

Advisor
Date Range for Data Collection (Start Date)
Date Range for Data Collection (End Date)
Digital Object Identifier
Series name and number
WP2025-16
Publication date
2025
Volume number
Issue number
Publisher
Publisher DOI
Journal Issue
Comments
Recommended citation
Collection