I believe that your average person could benefit from any strategy that will simplify their finances. However I don't think people who take an active role in improving their finances will be affected by a single or multiple accounts anyway.
(phys.org)We all know we should save some money for a rainy day. Of course, that's easier said than done when you really, really want that new iPhone. Or that new designer jacket. Or both. But a University of Kansas researcher has a suggestion for people trying to spend less and save more: Consolidate your multiple bank accounts into one main account.
According to new research by KU School of Business assistant professor Promothesh Chatterjee, individuals will save more and spend less when they have a single account compared with multiple accounts. Chatterjee's findings run counter to the conventional wisdom that people should spread their earnings across different accounts to increase their savings. Moreover, his findings have implications for policymakers trying to encourage saving among large populations of people.
"For years, the conventional wisdom has been that spreading your money across various accounts encourages you to save," Chatterjee said. "Nowadays, the average American has multiple liquid accounts, typically a combination of checking and savings accounts. But our research finds this is the wrong strategy to encourage saving. We find that individuals are more likely to save if they have only one primary account, rather than many accounts."
I keep multiple accounts, so money that needs to be used for bills, savings, investments and spending money are separated. I like to know they each account has a purpose and helps me out when it comes to budgeting.
(phys.org)We all know we should save some money for a rainy day. Of course, that's easier said than done when you really, really want that new iPhone. Or that new designer jacket. Or both. But a University of Kansas researcher has a suggestion for people trying to spend less and save more: Consolidate your multiple bank accounts into one main account.
According to new research by KU School of Business assistant professor Promothesh Chatterjee, individuals will save more and spend less when they have a single account compared with multiple accounts. Chatterjee's findings run counter to the conventional wisdom that people should spread their earnings across different accounts to increase their savings. Moreover, his findings have implications for policymakers trying to encourage saving among large populations of people.
"For years, the conventional wisdom has been that spreading your money across various accounts encourages you to save," Chatterjee said. "Nowadays, the average American has multiple liquid accounts, typically a combination of checking and savings accounts. But our research finds this is the wrong strategy to encourage saving. We find that individuals are more likely to save if they have only one primary account, rather than many accounts."
I keep multiple accounts, so money that needs to be used for bills, savings, investments and spending money are separated. I like to know they each account has a purpose and helps me out when it comes to budgeting.
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