Avoiding Financial Information: The Roles of Fate and Money Beliefs

Abstract

The current research explores the influence of belief in fate on the avoidance of information about one's current financial situation. Building on research in the areas of consumer behavior and consumer decision-making, we explore how implicit beliefs about money impact the relationship between an individual's belief in fate and avoidance of information about current financial situation. We find that fatalism positively predicts a greater likelihood of avoiding current financial information (Studies 1a and 1b). We further find evidence that this effect is mediated by two money scripts, defined as implicit beliefs about money, in particular, avoidant and status scripts (Study 2). In other words, situation avoidance occurs because individuals higher in fatalism have a greater belief in either an avoidant or status script, which further heightens their avoidance of information about their financial situation. Next, we introduce perceived control over money as a moderating factor of the relationship between these money beliefs and situation avoidance (Study 3). We find that the impact of money script on avoidance is weakened when individuals have higher perceived control over money, while lower perceived control further strengthens the relationship between money script and situation avoidance. Finally, the key effect is then generalized to various types of financial contexts (Study 4). We conclude with implications of these findings for theory, policy makers, managerial decision-making, and consumer well-being.