The Impact of Financial Resources on Cognitive Performance : a Systematic Review and Meta-Analysis

Abstract

Previous research has proposed that financial resources influence cognitive performance, though subsequent studies have questioned the magnitude and even the existence of this effect. To clarify these discrepancies, we conducted a systematic review and Bayesian meta-analysis aimed at identifying when and to what extent this effect appears. After screening 38,366 results, we identified 26 effect sizes from 14 relevant studies (Npooled = 30,341). We found that the aggregated findings remain inconclusive regarding the effect's existence (BF10 = 1.35) but suggests that, if present, it is relatively small (g = 0.06 [0.00, 0.18], tau = 0.14 [0.09, 0.22]). These findings are consistent across alternative analytical specifications. We detected moderate support for the effect in studies using unconditional cash transfers (BF10 = 8.08) and moderate support against it in payday variation designs (BF10 = 0.18). However, we found no support for or against the hypothesis that the integration of financial windfalls into participants' financial routines influences the effect. Additionally, our synthesis provides moderate support for the absence of an effect of financial resources on memory performance (BF10 = 0.24). These results vary across alternative analytical specifications. In summary, while current evidence is insufficient for definitive conclusions, our findings highlight key patterns and limitations in the literature.