Positive thinkers save more money
- World Half Full
- Jan 29
- 3 min read
SCIENCE/LIFESTYLE
Optimism isn’t just good for your mental wellbeing — it could boost your bank account, too. Research across 16 countries has found that people with an optimistic outlook tend to save more, with the effect strongest among those on lower incomes. This mindset shift could be key to improving financial security.
The study, published by the American Psychological Association, found that individuals who scored higher in “dispositional optimism” — the tendency to expect positive outcomes — accumulated more savings over time compared to those with a less positive outlook.
The findings, published in the Journal of Personality and Social Psychology, challenge the idea that optimism leads to financial irresponsibility.
“We often think of optimism as rose-coloured glasses that might lead people to save less for the future,” says lead author Joe Gladstone, PhD, of the University of Colorado Boulder. “But our research suggests optimism may actually be an important psychological resource that helps people save, especially when facing economic hardship.”
Gladstone and colleague Justin Pomerance, PhD, of the University of New Hampshire, analysed data from eight large population surveys in the US, the UK, and 14 European countries, with more than 140,000 total participants. All the surveys included some measure of optimism, asking participants to rate their agreement with statements such as “I’m always optimistic about my future”, “Overall, I expect more good things to happen to me than bad”, or “In uncertain times, I usually expect the best”. The surveys also asked participants to report their income, savings, and in some cases total assets.
Three of the surveys were cross-sectional, meaning participants were surveyed at one point in time. Five were longitudinal, in which they were surveyed more than once over a period of years.
Across all the surveys, the researchers found that participants who were more optimistic reported having more savings, on average. This held true even when the researchers controlled for factors that could influence both savings and optimism, such as age, gender, relationship status, parental status, childhood socioeconomic status, health, employment status and the “Big Five” personality traits —conscientiousness, extraversion, agreeableness, neuroticism and openness to experience.
“After controlling for those variables, the effect size of optimism was similar to what previous research has found for conscientiousness, a personality trait that’s widely recognised for its positive influence on financial outcomes,” says Gladstone. “Optimism also appears to exert a slightly stronger influence on savings behaviour than financial literacy and risk tolerance.”
The effect of optimism on saving money was strongest for people on lower incomes. That makes sense, says Gladstone, because at higher income levels, people often have more ways to save automatically, such as through mortgage payments — which contribute to home equity — and superannuation. Or they can simply save because they don’t need to spend all the money they earn.
“For someone living paycheck to paycheck, saving can feel futile,” Gladstone notes. “But an optimistic outlook may provide the motivation to set aside money despite present challenges.”
The study has implications for financial literacy programs aimed at boosting saving rates, particularly among those on lower incomes. Incorporating optimism-building techniques alongside traditional financial literacy training could prove a powerful combination, according to the researchers.
“Ultimately, a mindset of hope for the future, paired with the skills to manage money wisely, may be key to helping more people build financial security,” says Gladstone.
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