Having optimism about the future may help people save more money.
Research published in the Journal of Personality and Social Psychology found that people who are optimistic tend to save more money and that was particularly the case for people with lower incomes.
“Across eight large studies involving over 140,000 participants from multiple countries, we found that people who score higher on measures of dispositional optimism—the tendency to expect positive outcomes in life—save more money than those who are less optimistic,” Joe Gladstone, PhD, lead author of the study and a researcher at the University of Colorado Boulder told Theravive.
“More importantly, we discovered that this relationship is stronger for lower-income individuals. For someone with average savings of $8,000, a standard increase in optimism correlates with approximately $1,352 more in savings—a meaningful difference that could provide crucial financial cushioning during emergencies.”
As part of the research, Gladstone and colleagues examined data from eight surveys across the US, UK and Europe. All of the studies included a measure of the optimism of the participants.
Participants were also asked to report their savings, income and in some of the surveys they also reported their total assets.
“We were motivated by a simple question: Why do some people manage to save money, even in the face of financial hardship, while others struggle? Although much research has focused on external factors like income or financial literacy, we wanted to understand how internal psychological traits—specifically optimism—might shape saving behavior,” Gladstone said.
“This question is especially important given the widespread financial insecurity many people face. If optimism helps people save, especially those with fewer resources, it could become a powerful tool for designing more effective financial interventions and policies.”
The researchers found that the participants who were the most optimistic had more savings on average.
“The direction of the relationship was somewhat surprising. Initially, one might expect optimists to save less money—if you’re optimistic about the future, you might feel less need to prepare for rainy days. However, our research consistently found the opposite: optimists actually save more. Even more surprising was how robust this relationship proved to be across different countries, time periods, and income levels, and how it persisted even when controlling for other personality traits like conscientiousness, which is known to influence financial outcomes,” Gladstone said.
He argues that optimism can prove an influential force when it comes to reaching goals.
“Optimism can be powerful because it fundamentally shapes how people approach goal-setting and persistence. Optimistic individuals tend to believe their actions will lead to positive outcomes, which motivates them to engage in future-oriented behaviors like saving. For lower-income individuals who face numerous barriers to saving, optimism may provide the psychological resources needed to maintain focus on long-term goals despite immediate financial pressures,” he said.
“It helps people navigate the psychological challenges of financial scarcity by maintaining positive expectations about the future, which can counteract present bias and short-term thinking often associated with financial stress. Optimism is more than just a feel-good trait—it has practical consequences for financial wellbeing. And for people with lower incomes, cultivating optimism may make a meaningful difference in their ability to build financial security. Financial education programs often focus on skills and knowledge, but our research suggests that fostering a hopeful outlook could be just as important.”
In future research, Gladstone and his team hope to delve deeper into how exactly optimism changes the way people think about money or act with their money. They also hope to test interventions to examine whether optimism can be increased through coaching or training and if that in turn could lead to improved saving patterns over time, particularly for those in economic hardship.
“It’s important to note that while our research shows optimism is associated with increased savings, we’re not suggesting that financial hardship can be overcome through optimism alone,” Gladstone said.
“Structural barriers to saving remain significant, and policy interventions addressing these barriers are essential. However, our findings suggest that psychological interventions may be a valuable complement to structural changes, particularly for those facing economic challenges.”