How Budgeting Helps Consumers Achieve Financial Goals

Christina Kan, University of Colorado, USA
John Lynch, University of Chicago, USA
Philip Fernbach, University of Chicago, USA
Budgeting is a commonly recommended way to help people manage financial constraints. But how and why does it help? Budgeting consists of both setting a budget and tracking that budget. Budget setting increases the clarity of one’s financial goals. Budget tracking increases pain of paying.
[ to cite ]:
Christina Kan, John Lynch, and Philip Fernbach (2015) ,"How Budgeting Helps Consumers Achieve Financial Goals", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl and Carolyn Yoon, Duluth, MN : Association for Consumer Research, Pages: 74-79.