A Comparative Study on Money Attitude, and Economic Locus of Control among Earning and Non-Earning Individuals

Abstract

In today’s environment hit by the pandemic, the role of money is not limited to being a medium of exchange but has taken up diverse roles in people’s lives. Money is the same globally but it’s the individual’s attitude towards money that makes it different. Quite often it’s not about the money but about the underlying money attitude that influences one’s choices. This attitude towards money has been learnt over time and is reflected in various other aspects of life. One determinant of attitude towards money is perceived economic locus of control, the degree to which an individual perceives that monetary matters are controlled from their own behavior versus the degree to which they feel monetary matters are controlled by forces outside of themselves. The current research aims to compare and study attitudes towards money and economic locus of control among earning(N=50) and non-earning(N=50) individuals aged 18-30. Standardized measures of attitude towards money and economic locus of control were administered on participants. The findings of the study reveal non-earning individuals perceive uncontrollable chance as more influential on their financial circumstances compared to earning individuals. Non-earning individuals were also found to have higher levels of distrust in their attitude towards money compared to earning individuals. The current study implies the need to incorporate money management, and future financial planning in the curriculum of educational institutions and encourages non-earning individuals to earn money in young adulthood. In addition, workplaces must focus on developing training that equip their young employees with the necessary skills and knowledge in monetary matters.