“An unexamined life is not worth living” Socrates
In this world there are only two tragedies. One is not getting what one wants, and the other is getting it.” Oscar Wilde
It is the preoccupation with possessions, more than anything else, that prevents us from living freely and nobly.” Henry David Thoreau
We are happiest when we feel good about who we are, have meaningful relationships with others, and get involved in our community— and those things can’t come about unless we exercise financial self-control.”
The pursuit of power, personal glory, money, and material possessions (American Dream) has undermined our happiness. Such pursuit comes at the expense of personal growth, good relationships, and service to the community.”
Materialism is an attempt to find meaning in one’s life.
Doing great good is unlikely if your primary focus is seeking personal happiness.”
Attitudes: thinking, feeling, doing
Stage 1 (preconventional): decisions based upon the possibility of punishment
Stage 2 (preconventional): behavior deemed appropriate of it serves the individual’s best interest.
Stage 3 (conventional): decisions based on approval from others; conformity.
Stage 4 (conventional): law and order thinking. Society’s rules about proper behavior and feel obligated to conform.” Little thought given to ethical underpinnings of such social rules.”
Stage 5 (post conventional): recognize the underlying moral purpose of laws and social customs.
Stage 6 (post conventional): moral reasoning based on relavent universal truths. Law is valid only if just.”
Environmental and behavioral programming to improve self-control.
Self-control requires Self-monitoring, clear standards, and capacity to make changes in your thoughts and behaviors.”
Identify a target behavior and record how often, how long, and when the behavior occurs. This helps to get clear grasp on the frequency, timing, causes, and effects of that behavior.”
When you have knowledge of and control over the antecedents and consequences of your target behavior, you can be incredibly successful at making desired changes.
1) how often the behavior occurs 2) what you think prompted the behavior 3) any resulting consequences.”
When clear standards are lacking, are ambiguous, or contradict each other, self-control failures are more likely.”
No product will make you happy for more than a fleeting moment if you are not satisfied with who you are on the inside.”
Not having enough strength to combat one’s impulses is Ego Depletion.
Even with clear goals and close monitoring of your situation you need strength to resist life’s many guilty pleasures.”
Emotion-Focused Coping: Making yourself feel better at the expense of longer term concerns leads to various breaches in your self-control.”
The fewer times we face temptation and have to make a choice, the more potential for self-control we conserve.”
The likelihood of a response (behavior) is highly influenced by the absence or presence of environmental cues associated with that response.”
Couples who have vastly different attitudes about money and material possessions will have a tough time finding the happiness we al desire.
Home: biggest down payment, fixed rate, 15 year term, never take out a home equity loan.”
When your financial house is in order, you can make a real difference in the lives of others.”
Every single thing you do to tweak your environment to avoid unwanted behaviors and encourage desired behaviors and every single time you implement those tweaks, will increase your likelihood of achieving your goals.”
1) identify clearly the desired behavior 2) choose appropriate rewards-reinforcers 3) plan your reinforcement schedule 4) be vigilant against backsliding.”
Marketers have enlisted your friends, family members and acquaintances as a stealth marketing force to sell you the latest goodies .
Word of Mouth, Fourth Wall
The ongoing use of deception and lack of disclosure by WOM marketers will continue to erode the distinction between human interaction and marketing efforts and further the commoditization of human relationships.”
Laggards are somewhat disenfranchised and don’t like change. Tradition bound and are often driven by lack of financial resources. When a laggard ultimately purchases a product, it is likely out of date already, with earlier adopter categories having already moved on to the next generation of the product.”
Laggards may be targets for companies trying to clear their shelves of products the rest of the market has already passed by.
How we pay for purchases might affect our purchasing decisions.
Credit cards- quicker purchases, more likely to buy something, more willing to pay a higher price.”
Form of payment mechanism impacts the recollection of past payments and influences future expenditures.”
The delay built into the billing cycle separates the enjoyment of the purchase from payment, which leads to a softening of the payment’s impact.”
Credit card payments are also less memorable because of the lack of Rehearsal
We overestimate the amount of available wealth, which in turn increases the likelihood of making additional purchases.”
Credit card allow us to shop impulsively, indulge our every whim, and postpone worrying about the consequences until another day.”
Self-actualizing humans have the ability to assess their underlying condition and choose a course of action that enables them to adapt and continue to develop.”
People who reach the peak of self-actualizatkom find themselves in a place where they are driven by an inner voice rather than by lower-level survival needs or the dictates of others.”
Meeting extrinsic goals is contingent upon the approval of others, and their pursuit often results in anxious and unhappy people. Distract people from understanding psychological needs.
Extrinsic goals are symptomatic of a more insecure personal style and that certain people address these insecurities through purchasing , consuming, and displaying material possessions.”
The potentially negative impact of winning the lottery on interpersonal relationships is an important reason why lottery winners are not happier than the rest of us.”
A person may or may not be happy with good social relationships but without good social relationships the chances of achieving happiness are remote.”
Highly materialistic people prefer to own and keep things instead of renting or borrowing or discarding objects; they tend to be envious of what others have and to become upset when others have things they don’t.”
Spending money on gifts for friends or donating to charity increases one’s happiness.”
A materialistic spouse is a better predictor of a couple’s financial problems than is the couples income.”
As an important socialization agent, the family— if it doesn’t do it’s job well— can produce insecure offspring that cling to possessions as a source of security and self-esteem.
Children express lower levels of materialism when mothers provide them a secure supportive environment.@
Insecure people may be more susceptible to the daily marketing onslaught whose primary job is to foster insecurities and then provide consumer remedies for such ailments.
When threatened economically or reminded of mortality, we gravitate to extrinsic goals and materialistic impulses.
If we can foster a feeling of insecurity or self/doubt, a sale is soon to follow.”
The desire for more is useful only in a resource-strapped environment. It is not well suited for the consumer culture.
General cognitive ability is only 50% genetics during adolescence but it increases to 80% by the age of 65.
Our ability to control our impulsive behavior has generic roots. Materialism is an elemental personality trait.@
Sensation seekers search out novelty in an unconscious attempt to increase their dopamine levels. MAO-B is biological force behind desire for novel, varied and thrilling sensations and experiences.”
Materialism is positively related to sensation seeking. Materialistic people get a thrill or high from buying possessions.”
Pentecostal church- prosperity gospel. Name it and claim it theology. Oral Roberts after WWII
Henry Ward Beecher early 19th century Prosperity Gospel.
You can’t solve the problem of wealth creation through debt creation.” Louis Hyman
Community Reinvestment Act 1977
Martin Seligman: H=S+C+V
Our escalating consumption does not bring us closer to the so called good life; it only speeds up the treadmill.”
1995 Easterlin Paradox
The new dream was the dream of instant wealth won in a twinkling by audacity and good luck.
The promise that wealth could be obtained overnight, that boldness and luck were at least as important as steadfastness and frugality.”
California Gold Rush 1848
Industrial Revolution increased output.
By 1900, nearly 1,200 catalogs took the latest products to even the remotest outposts.”
Standardized products can be bought and sold to anyone regardless of social standing. Americans joined consumption communities in which the common thread was the consumption of the same brands.”
Advertising and buying in credit are most responsible for today’s consumer culture.”
The new culture speaks to us, only of ourselves, our pleasures, our life. It does not say pray, obey, sacrifice thyself, respect the king, fear thy master. It whispers Amuse thyself, take care of yourself.”
Henry Ford- father of mass consumption
Americans have come to consider their standard of living as a somewhat sacred acquisition, which they will defend at any price. This means that they would be ready to make an intellectual or even moral concession in order to maintain that standard.” André Siegfried
1931: phrase American Dream by Truslow Adams
The higher wages being offered to workers were not intended to create more well-rounded people, by increasing their leisure and the chances to make good use of it, but to provide Americans with the time and money to expand their powers as consumers.”
The use of credit became nearly universal when the last vestiges of control were lifted with the conclusion of the Korean War. Regulation W during WWII
Mortgage debt helped make people comfortable with debt in general. The home was the nexus that connected the cars, television, furniture and myriad appliances.”
Vance Packard, Thorstein Veblen, Herbert Marcuse
We work to buy things we’re told we need and are enslaved to meaningless jobs in their endless pursuit.
Eventually Baby Boomers of the 1960s would have to grow up, possibly graduate, find jobs, start families, and buy into the values of the prevailing culture.”
People seemed to need particular products and apparel to communicate with others and to feel part of a larger group.”
1960s : repeal of Blue Laws that banned shopping on Sundays
1970: Stagflation- combination of high inflation, stagnant economy, and high unemployment
Internet Dot-Com boom lasted 5 years. Most of us were burned. 2000
This pattern of increasing homeownership followed by a loosening of credit standards and a spike in foreclosures would play itself out with the 2008 mortgage crisis.”
The 300 year old Protestant worth ethic to breakup with the cultural protests of the 1960s which questioned and discarded many traditional American virtues.”