Definition
These terms, coined by George Lowenstein, describe two extremes of consumer spending behaviour. Spendthrifts are individuals who tend to overspend, live for the moment, and have short-term financial horizons. Skinflints are individuals who find the act of spending money so painful that they spend too little.
Why it matters (in Poovi’s context)
Understanding these spending archetypes helps to frame the discussion around why Americans might not be spending optimally on experiences, suggesting a psychological barrier for some individuals.
Key properties or components
- Spendthrifts: overspending, short-term focus
- Skinflints: underspending, pain of transaction
- Distribution in population
Contradictions or debates
None.