2024 Study Finds Friend Networks Boost Saving and Investing as High-Income Ties Shape Habits
Updated
Updated · The New York Times · May 30
2024 Study Finds Friend Networks Boost Saving and Investing as High-Income Ties Shape Habits
2 articles · Updated · The New York Times · May 30
A 2024 National Bureau of Economic Research study found people with more connections to high-income earners are more likely to save and invest, underscoring how friend groups can shape personal finances.
That influence reflects social contagion: behaviors spread through networks, and highly connected or better-educated members can steer what a group sees as normal spending and saving.
Sandy Smith, 48, turned severe frugality during the Great Recession into a finance-focused circle, using group chats, annual goal-setting sessions and check-ins to push friends toward tighter money habits.
Smith said she moved from $200,000 in debt to a net worth above $1 million, illustrating how one influential friend can affect not just a close circle but a wider social network.
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