"Now that most people spend their money electronically -- with billions of payment cards in circulation worldwide -- we can study these spending patterns at scale like never before," says Joe Gladstone of University College London, who co-led the research. "Our findings demonstrate for the first time that it is possible to predict people's personality from their spending."
We all spend money on essential goods, such as food and housing, to fulfill basic needs -- but we also spend money in ways that reflect aspects of who we are as individuals. Gladstone and colleagues wondered whether the variety in people's spending habits might correlate with other individual differences.
Patterns - Differences - Peoples - Kind - Person
"We expected that these rich patterns of differences in peoples spending could allow us to infer what kind of person they were," says Sandra Matz, who co-led the project.
In collaboration with a UK-based money management app, Gladstone and Columbia Business School researchers Sandra Matz and Alain Lemaire received consent and collected data from more than 2,000 account holders, resulting in a total of 2 million spending records from credit cards and bank transactions.
Account - Holders - Personality - Survey - Questions
Account holders also completed a brief personality survey that included questions measuring materialism, self-control, and the "Big Five" personality traits of openness to experience, conscientiousness, extraversion, agreeableness, and neuroticism.
Participants' spending data was organized into broad categories -- including supermarkets, furniture stores, insurance policies, online retail stores, and coffee shops -- and the researchers used a machine-learning technique to analyze whether participants' relative spending across categories was predictive of specific traits.
Correlations - Model - Predictions - Participants - Personality
Overall, the correlations between the model predictions and participants' personality trait scores were modest. However, predictive accuracy varied considerably across different traits, with predictions that were more accurate for the narrow traits (materialism and self-control) than for the broader traits (the Big Five).
Looking at specific correlations between spending categories and traits, the researchers...
Wake Up To Breaking News!