Cultivating Financial Mindfulness: A Dual-Process Theory
This chapter considers the cultivation of financial mindfulness in relation to a dual-process mental model, i.e., reflexive and reflective, of influences on financial attitudes and behaviors. In the proposed dual-process model, the reflexive system is energizing, passionate, impulsive, and automatic; in excess, it produces selfish, materialistic financial behaviors. The reflective system is thoughtful and deliberate; in excess, it produces financial inaction and indecision. A functional money relation obtains with moderate levels of, and balanced (λ), reflexive and reflective influences. Although sparse, evidence suggests that cultivating mindfulness strengthens a witnessing self that aids in balancing and integrating the reflexive and reflective systems. Eastern and Western paths to cultivating financial mindfulness have similarities and differences. Eastern, i.e., Buddhist, paths emphasize meditation; Western paths, largely based on psychotherapy, emphasize counseling and therapy that are sometimes combined with mindfulness exercises. Although largely unexplored, the relation of financial knowledge to mindfulness is a potentially fertile and important topic for future exploration.
Thanks to the Institute of Management Accountants (IMA), the Gatton College of Business, and the Von Allmen School of Accountancy for financial support related to the work described herein. Thanks also to an anonymous reviewer, Tim Kasser (Knox College), Tim Miller (University of Kentucky), Jason Bergner (University of Kentucky), Candace Witherspoon (University of Kentucky), and Doug Lamdin (Editor) for thoughtful comments on previous drafts.
- Abelian, M. E. (2006). Trends in psychotherapy research. New York: Nova.Google Scholar
- Aristotle, & Rackham, H. (1926). The Nicomachean ethics. London: W. HeinemannGoogle Scholar
- Bell, J. B., & Whaley, B. (1991). Cheating and deception. New Brunswick: Transaction.Google Scholar
- Butler, B. S., & Gray, P. H. (2006). Reliability, mindfulness, and information systems. MIS Quarterly, 30(2), 14.Google Scholar
- Chaiken, S., & Trope, Y. (1999). Dual-process theories in social psychology. New York: Guilford.Google Scholar
- Crane, C., Barnhofer, T., Duggan, D., Hepburn, S., Fennell, M., & Williams, J. (2008). Mindfulness-based cognitive therapy and self-discrepancy in recovered depressed patients with a history of depression and suicidality. Cognitive Therapy and Research, 32(6), 13. doi: 10.1007/s10608-008-9193-y.CrossRefGoogle Scholar
- Czikszentmihalyi, M., & Rathunde, K. (1990). The psychology of wisdom: An evolutionary interpretation. In R. J. Sternberg (Ed.), Wisdom: Its nature, origins, and development(pp. 25–51). Cambridge: Cambridge University Press.Google Scholar
- Ellison, K. (2007). Giving meditation a spin, The Washington Post(January 23). Retrieved December 24, 2009, from http://www.washingtonpost.com/wp-dyn/content/article/2007/01/19/AR2007011901443.html.
- Germer, C. K., Siegel, R. D., & Fulton, P. R. (2005). Mindfulness and psychotherapy(1st ed.). New York: Guilford.Google Scholar
- Gilbert, P. (2008). Mindfulness and mental health – therapy, theory and science. Nursing Standard, 23(8), 1, 4.Google Scholar
- Gonzalez, M., & Byron, G. (2010). The Mindful Investor: How a calm mind can bring you inner peace and financial security. Mississauga, Ont.: J. Wiley.Google Scholar
- Hanh, T. N. (1976). The miracle of mindfulness!: A manual of meditation. Boston: Beacon.Google Scholar
- Hinkel, D. (2009). Lawyer found dead hours before trial. Retrieved October 14, 2009, from http://nwitimes.com/news/local/lake/article_628994d1-2a45-5713-a09a-7a01b27149fc.html.
- Jung, C. G., Read, H. E., Fordham, M., & Adler, G. (1953). The collected works of C. G. Jung. New York: Pantheon.Google Scholar
- Kasser, T. (2002). The high price of materialism. Cambridge: MIT.Google Scholar
- Kasser, T. (2009). Can Buddhism and consumerism harmonize? A review of the psychological evidence. Journal of Religion and Culture, 2, 167–193.Google Scholar
- Kinder, G. (1999). The seven stages of money maturity: Understanding the spirit and value of money in your life. New York: Delacorte.Google Scholar
- Kinder, G. (2007). A song for H*ana & the spirit of Leho*ula. Hana, HI: Serenity Point.Google Scholar
- Kinder, G., & Galvan, S. E. (2006). Lighting the torch: The kinder method of life planning. Denver: FPA.Google Scholar
- Kramer, D. A. (1990). Wisdom: Its nature, origins and development. Cambridge: Cambridge University Press.Google Scholar
- Kulananda, & Houlder, D. (2002). Mindfulness and money: The Buddhist path of abundance(1st ed.). New York: Broadway Books.Google Scholar
- Lykins, E. L. B., Segerstrom, S. C., Averill, A. J., Evans, D. R., & Kemeny, M. E. (2007). Goal shifts following reminders of mortality: Reconciling posttraumatic growth and terror management theory. Personality and Social Psychology Bulletin, 33(8), 1088–1099. doi: Doi 10.1177/0146167207303015.PubMedCrossRefGoogle Scholar
- Mason, R. S. (1981). Conspicuous consumption: A study of exceptional consumer behavior. New York: St. Martin’s.Google Scholar
- Mason, R. S. (1998). The economics of conspicuous consumption: Theory and thought since 1700. Cheltenham: Edward Elgar.Google Scholar
- Oddi, M. (2009). Attorney William Crabtree II, facing trial, found dead in Dyer home Retrieved 9–14, 2009, from http://indianalawblog.com.
- Oxford University Press. (2002). Oxford English dictionary. Retrieved from http://dictionary.oed.com/For subscribers only; follow links to resource.
- Scott, T. (2009). Kinder points to fivefold boost in business value. Money Marketing, 19.Google Scholar
- Swidey, N. (2007). The inside job. In L. Fairstein, O. Penzler and T. H. Cook (Eds.), The best American crime reporting(pp. 33–52). New York: Harper.Google Scholar
- Veblen, T. (2006). Conspicuous consumption. New York: Penguin.Google Scholar
- Weick, K. E., Sutcliffe, K. M., & Obstfeld, D. (1999). Organizing for high reliability: Processes of collective mindfulness. Research in Organizational Behavior, 21, 81–123.Google Scholar
- Wilber, K. (2007). The integral vision: A very short introduction to the revolutionary integral approach to life, God, the universe, and everything(1st ed.). Boston: Shambhala.Google Scholar
- Williams, P. (2006). How to lose $100,000,000. In O. Penzler and T. H. Cook (Eds.), Best American crime reporting(1st ed., pp. 183–194). New York: Vintage.Google Scholar