Personality traits and financial outcomes

Arbeitspapier

The Big Five personality traits-openness to experience, conscientiousness, extroversion, agreeableness, and neuroticism-are widely used in understanding human behavior. Using data collected from a survey and diary of consumer payment choice, we investigate how the Big Five traits affect three financial outcomes: being unbanked, holding a credit card, and carrying credit card debt. Although each personality trait is correlated with each of the financial outcomes we examine, they mostly become statistically insignificant when we control for demographics and income in regressions. Carrying credit card debt (revolving), however, is significantly affected by conscientiousness, openness, and agreeableness: Credit card adopters who are less conscientious, more open to experiences, or more agreeable are significantly more likely to revolve credit card debt. A machine learning algorithm confirms that conscientiousness is the major factor separating revolvers from other credit cardholders.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Papers ; No. 23-4

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Consumer Economics: Empirical Analysis ; Household Saving; Personal Finance ; Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
• Thema: credit card debt ; consumer payments ; personality traits ; financial behavior ; unbanked

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Greene, Claire ; Shy, Oz ; Stavins, Joanna
• Ereignis: Veröffentlichung
• (wer): Federal Reserve Bank of Boston
• (wo): Boston, MA
• (wann): 2023

Weitere Informationen

• DOI: doi:10.29412/res.wp.2023.04
• Handle: http://hdl.handle.net/10419/280848
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ