Abstract

Why do some individuals experience pain when spending money, even if they can afford it? Although prior research has identified several potential causes for tightwad (vs. spendthrift) tendencies and related money attitudes, gaps remain regarding the effects of one’s childhood environment. This thesis investigates whether childhood socioeconomic status (SES) impacts individuals’ likelihood of experiencing pain of paying in adulthood, and it explores the roles of various family-related factors in this effect. Drawing on Life History Theory, this thesis tests whether lower (vs. higher) childhood SES is associated with more tightwad (vs. spendthrift) tendencies in adulthood. It also explores whether birth order (i.e., being a first vs. second or later child), parental spending tendencies, and parental financial guidance (e.g., teaching their children how to manage money) moderate this effect, as these factors may also be associated with experiencing more or less pain of paying in adulthood. These effects were tested across three studies. Although the hypothesized effects were not significant, exploratory analyses suggested that the relationship between childhood SES and adult spending tendencies is more complex than anticipated. Finally, the implications of the findings and future research directions are discussed.