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Your Spending Habits May Reveal a Lot About your Personality Traits

The researchers also found that those who reported greater self-control spent less on bank charges and those who rated higher on neuroticism spent less on mortgage payments

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money spending habits, personality traits
The researchers also found that those who reported greater self-control spent less on bank charges and those who rated higher on neuroticism spent less on mortgage payments. Pixabay

Everyone spends their money differently as they have varying needs and interests. But, it is interesting to know that a person’s spending habits can reveal a lot about their personality, say researchers.

People spend money in certain categories and this can be used to infer certain personality traits such as how materialistic they are or how much self-control they tend to have. Published in the journal Psychological Science, the study analysed over two million electronic spending records – from credit, debit cards and online transactions – from more than 2,000 volunteers.

Our findings demonstrate for the first time that it is possible to predict people’s personality from their spending, said study co-author Joe Gladstone from the University College London. The participants also completed a personality survey that included questions measuring materialism, self-control, openness to experience, conscientiousness, extraversion, agreeableness and neuroticism.

The researchers used a machine learning technique to analyse whether participants’ relative spending across categories was predictive of specific traits. Overall, the correlations between the model predictions and participants’ personality trait scores were modest.

money spending habits, personality traits
People spend money in certain categories and this can be used to infer certain personality traits such as how materialistic they are or how much self-control they tend to have. Pixabay

Looking at specific correlations between spending categories and traits, the researchers found that people who were more open to experience tended to spend more on flights, those who were more extroverted tended to make more dining and drinking purchases, those who were more agreeable donated more to charity, those who were more conscientious put more money into savings, and those who were more materialistic spent more on jewellery and less on donations.

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The researchers also found that those who reported greater self-control spent less on bank charges and those who rated higher on neuroticism spent less on mortgage payments.

The findings have clear applications in the banking and financial services industries, which also raises potential ethical challenges. For example, financial services firms could use personality predictions to identify individuals with certain traits, such as low self-control and then target those individuals across a variety of domains, from online advertising to direct mail, researchers said. (IANS)

Next Story

Sharing Personality Traits with Your Partner May Not Be a Key to Successful Relationship

Furthermore, apps that match people on compatibility may have it all wrong despite their popularity

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Supportive relationship
Holding Hands in relationship. Pixabay

Are you searching for a partner with whom you can share personality traits? Relax. The key to relationship happiness could be as simple as finding a nice person, a new study has found.

The study showed that despite popular belief, sharing similar personalities may not be as important as most people think, suggesting that it had almost no effect on how satisfied people were in their lives and relationships.

“People invest a lot in finding someone who is compatible, but our research says that may not be the end,” said Bill Chopik, Associate Professor at Michigan State University in the US.

“Instead, people may want to ask, ‘Are they a nice person?’ ‘Do they have a lot of anxiety?’ Those things matter way more than the fact that two people are introverts and end up together,” said Chopik.

For the study, the researchers measured the effects of personality traits on well-being in 2,578 heterosexual couples who have been married for roughly 20 years.

Night-owl women not for long-term relationships: Study
In stress? Remember your romantic partner and keep BP down. pixabay

The findings, published in the Journal of Research in Personality, showed that even among the couples who share similar personalities, having a partner who is conscientious and nice leads to higher levels of relationship satisfaction.

At the same time, having a partner who is neurotic and more extroverted results in lower relationship satisfaction.

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Furthermore, apps that match people on compatibility may have it all wrong despite their popularity, the study suggested.

“When you start to get into creating algorithms and psychologically matching people, we actually don’t know as much about that as we think we do. We don’t know why the heart chooses what it does, but with this research, we can rule out compatibility as the lone factor,” Chopik said. (IANS)