Market Performance: February 19, 2024.

S&P 500 futures inched lower early Tuesday as the market comes off its first losing week in more than a month.

Futures tied to the S&P 500 slid 0.33%, while Nasdaq 100 futures dipped 0.41. Futures tied to the Dow Jones Industrial Average lost 121 points, or 0.32%.

The moves follow a losing week on Wall Street after economic data raised concerns that the Federal Reserve may not begin cutting interest rates as soon, or by as much, as market participants expected this year.

The moves follow a losing week on Wall Street after economic data raised concerns that the Federal Reserve may not begin cutting interest rates as soon, or by as much, as market participants expected this year.

People save more money when their goals fit their personality traits

People whose savings goals align well with their dominant personality traits are more likely to save money, according to research published by the American Psychological Association.

In the U.S. and around the world, savings rates are critically low. In October 2022, the Bureau of Economic Analysis reported Americans save just 2.3% of their income, the lowest in nearly two decades. Although people report wanting to save more money, saving is difficult—in part because it requires people to overcome the psychological hurdle of making a sacrifice in the present to benefit themselves in the future.

Researcher Sandra Matz, PhD, of Columbia University, and her colleagues Joe Gladstone, PhD, of the University of Colorado at Boulder, and Robert Farrokhnia, PhD, of Columbia University, wanted to see if aligning people’s savings goals to their personality traits might make it easier for them to save.

The research was published in the journal American Psychologist.

Previous research by Matz and Gladstone found that people high in agreeableness are less likely to save than others, possibly because they’ve been taught that valuing people and valuing money are at odds with one another, and that “nice people” don’t value money.

Research suggests that the "pain of paying" affects spending and happiness

Aren’t we all feeling the pinch of rising energy bills? That "oh-no" moment when receiving a heating bill makes us question our house's optimal temperature. Maybe you have even considered joining the recent trend of "thermal tourism," which involves taking winter holidays in warmer climates to avoid the cost-of-living crisis.

It is hardly a coincidence that smart meters have reached unprecedented popularity. By showing consumers how much energy they use at any given moment (and just how much they’re paying for it), smart meters have been advertised as an obvious solution to help people understand their energy bills, adjust their behaviour and take control of their spending.

For example, smart meters could help you get your money’s worth by highlighting appliances that use particularly large amounts of electricity. Reducing the use of those appliances and switching to alternative options could help you save significantly!

The Psychology of Paying

Tracking your spending habits—be it through smart meters or detailed bookkeeping—seems like an obvious solution to tackle overspending and make you feel better about your finances. But is that really the case?

One commonly overlooked factor is the psychological complexity of any payment we make. When we part with our hard-earned money, the actual financial cost isn’t the only thing that matters. Indeed, psychologist Dan Ariely argues that consumer experiences are shaped by additional factors, including the hassle of making a payment and the subjective pain of paying.

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