The psychological meaning of money

This chapter aims to demonstrate the psychological consequences of money. It begins by explaining how the disciplines of economics and psychology differ in how they define the main functions of money and the role it plays in people’s lives. The chapter then argues that the invention of money several thousand years ago changed the system of trade (by replacing barter), as well as affected processes related to social interactions. Following this line of reasoning are three predictions: money increases people’s focus on self and their own goals; money impairs warm, caring social behaviour; and money alters morals and values. The chapter elaborates on the origins of these predictions and then presents experimental evidence on the some psychological consequences of money. It further explains how the technique of money priming has been used to test the described hypotheses. Finally, the chapter reviews empirical research conducted to test the mentioned predictions.