In search of determinants of time-discounting in monetary choices: Personal characteristics matter only a little

Time-discounting in monetary choices is determined by the aspects related to the reward, contextual factors, and characteristics of a person. In the present study (Ntotal = 1134), we examined how well do personal characteristics (sociodemographic, financial situation, self-control, cognitive abilities, negative experiencing, and trustfulness) predict time-discounting in both hypothetical and real reward scenarios. The results of the regression analyses indicate that the characteristics of a person explain only a small proportion of the variance in time-discounting (R2 ranged from .10 to .19). The only substantive predictors of time-discounting in monetary choices were financial literacy and a general tendency to delay gratification. We conclude that there still is much work to be done in explaining what determines time-discounting, however, we suggest shifting the focus from the personal characteristics to the characteristics of the reward and contextual factors.