Not women, but men are more prone to emotional money spending, finds study

Whenever it comes to emotional spending, always the women are to be blamed, right? However, a study has revealed that this may not be the case; it can be the total opposite. A recent groundbreaking study conducted by the University of Essex about gender and decision-making has revealed that men may be more prone to letting emotions shape their financial choices as compared to women.

According to the lead researcher, Dr. Nikhil Masters, there is a term called 'emotional carryover effect,' which means how emotions from one situation can influence decisions in entirely unrelated contexts.

The findings of the study further shed light on the gender differences in how emotions impact risk-taking, offering fresh insights into how we navigate high-stakes choices.

Role of emotions in making financial choices

For conducting the study, the researchers involved 186 university students who were divided into three groups, and they were shown videos designed in a way that aroused different emotional reactions. During the analysis, one group watched a calming nature documentary, while another saw a suspenseful scene from the horror classic called 'The Shining,' and a third group saw real news footage from the 1990s, which was about the 'mad cow disease' (BSE) crisis.

After watching the assigned videos, the participants made their financial decisions in scenarios that included risky choices or ambiguous outcomes or uncertain odds.

How are men more prone to emotional spending than women?

According to the study, men who watched emotionally charged videos, like horror or the news, were more cautious in their financial choices as compared to the ones who saw a neutral nature video.

This cautious behaviour was particularly found in men who saw the BSE news footage and in scenarios with ambiguous odds.

While, on the other hand, women's financial decisions remained steady regardless of the video they watched, despite this they reported experiencing similar emotions.

Why are men more affected by their emotions than women?

Dr. Masters, in the study, investigated the differences in emotional intelligence that may play a major role. He explained in the study that women usually score higher in emotional intelligence tests, which could explain why they are better at managing their emotions in decision-making.