Name: Could your language affect your ability to save money?
Uploaded: 2013-02-19T16:02:12Z
Duration: 11 min 56 s
Description: What can economists learn from linguists? Behavioral economist Keith Chen introduces a fascinating pattern from his research: that languages without a concept for the future -- "It rain tomorrow," instead of "It will rain tomorrow" -- correlate strongly with high savings rates.

Keith Chen: Could your language affect your ability to save money?

Could your language affect your ability to save money?

What can economists learn from linguists? Behavioral economist Keith Chen introduces a fascinating pattern from his research: that languages without a concept for the future -- "It rain tomorrow," instead of "It will rain tomorrow" -- correlate strongly with high savings rates.

The language people speak can influence their willingness to save for the future. Countries where languages do not grammatically mark the future, such as Chinese or German, tend to have much higher savings rates than nations with futured languages like English. Over 25 years, this difference can amount to five percentage points of GDP saved annually, reshaping national wealth. Even after controlling for factors like income, education, and religion, futureless language speakers consistently show greater financial and health-related self-control.