Loosening the belt: On the effects of goal-conflict situations on regular savings

Abstract

This paper examines the effect of implementation intentions on consumers' success in pursuing conflicting saving–spending goals. Surveys of participants in a community-based savings programme were conducted to test whether the forming of implementation intentions in specific action plans facilitate the pursuit of the focal savings goal. The intervention had no effect in facilitating the savings goal, suggesting that goal conflict undermines goal commitment above and beyond the influence of commitment mechanisms. Inquiring into the reasons for not saving within the implementation intention group, we found that conflict with spending goals emerged as a partial mediator explaining subjects' failure to enact their savings intentions. Implications for community-based savings programmes are also discussed. Journal compilation © 2009 Blackwell Publishing Ltd.