The Financial Consequences of Change

People change over their lifetime, so do their circumstances. Past research has documented how momentary situational circumstances--for instance, momentary resource scarcity, financial literacy, current needs, etc.--affect financial decision-making. However, the effects of changing circumstances on these decisions have received less attention. Consumers tend to resist change because of the uncertainty it creates. Uncertainty increases the desire for control, including control over one's finances. This session ties together four papers about how consumers react to actual, perceived, and expectations of change. Together, the insights from this session calls attention to financial behaviors that arise as consumers cope with change and uncertainty. In this session, we aim to create a dialogue about the financial consequences of change and interventions consumers can practice to mitigate them.