Financial Mindfulness: A Scale

54 Pages Posted: 2 Oct 2023 Last revised: 26 Mar 2024

See all articles by Emily Garbinsky

Emily Garbinsky

Cornell University - SC Johnson Graduate School of Business

Simon J. Blanchard

Georgetown University - McDonough School of Business

Lena Kim

Cornell University - SC Johnson Graduate School of Business

Date Written: September 6, 2023

Abstract

The concept of mindfulness has enjoyed much resonance among researchers. Despite this past work, we argue there is a need for a domain-specific conceptualization and measure of financial mindfulness. We first define financial mindfulness (FM) as “the tendency to be highly aware of one’s current objective financial state while possessing an acceptance of that state,” and second, develop and validate an 8-item scale to measure individual differences in FM. This article has seven studies, including a field survey administered by a financial services provider to examine actual behavior. Importantly, the FM-Scale is associated with financial behaviors (i.e., sunk cost bias) above and beyond related scales (i.e., money management stress, self-control, and general mindfulness). To the best of our knowledge, our work is the first to provide a succinct way to measure FM that incorporates elements of both awareness and acceptance, highlighting the role of financial acceptance specifically.

Keywords: consumer finance, credit scores, investment preferences, mindfulness, scale development

JEL Classification: G5, G53, D14

Suggested Citation

Garbinsky, Emily and Blanchard, Simon J. and Kim, Lena, Financial Mindfulness: A Scale (September 6, 2023). Georgetown McDonough School of Business Research Paper No. 4564115, Available at SSRN: https://ssrn.com/abstract=4564115 or http://dx.doi.org/10.2139/ssrn.4564115

Emily Garbinsky

Cornell University - SC Johnson Graduate School of Business

Simon J. Blanchard (Contact Author)

Georgetown University - McDonough School of Business ( email )

3700 O Street, NW
Washington, DC 20057
United States

Lena Kim

Cornell University - SC Johnson Graduate School of Business

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