Abstract
• Self-control plays a significant role in explaining financial risk-taking. • There is a negative link between self-control and financial risk taking. • Reflecting on self-control successes lowers financial risk-taking propensity. • Reflecting on self-control failures raises financial risk-taking propensity. We report two studies investigating the role of self-control in risky financial decision-making, operationalized as incentivized lottery task decisions. Study 1 ( N = 529) investigated the link between propensity to take financial risks and trait self-control. Study 2 ( N = 321) examined whether reflecting on one’s prior successes and failures in exercising self-control has an impact on subsequent risky financial decision-making. Study 1 identified a negative link between self-control and financial risk-taking, and Study 2 found that reflecting on self-control successes lowered people’s propensity to take financial risks, while reflecting on self-control failures made people more prone to take financial risks.
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