The psychology of money

Money is typically defined as a means of exchange - a universal economic force that allows people to fulfil their needs by purchasing goods. Psychological science, however, shows that money may be an end in itself, influencing both social relations and intrapersonal regulations. This chapter provides insight into the psychology of money. We argue that people’s beliefs and behaviours concerning money’s purchasing power and its symbolic meanings go far beyond its understanding as an economic force and diverge from assumptions underlying models developed in economics. We show how people assign subjective value to money, and which factors might affect these valuations. We review studies of the symbolic meaning of money and provide insights into various methods of exploring such a meaning, including money priming and the psychometric measurement of attitudes towards money. Finally, we offer potential new directions for investigating the psychology of money and suggest practical implications of the presented findings.