Converging vs diverging: The effect of visual representation of goal structure on financial decisions

Financial decisions often entail choices between multiple options, and the presence of multiple options can increase decision difficulty. The present work introduces an intervention to visually represent the dynamic relation between a financial goal and its associated options with either a converging diagram (in which multiple subordinate options visually flow inward and converge into a superordinate goal) or a diverging diagram (in which a superordinate goal visually flows outward and diverges into multiple subordinate options). Drawing on the visual-congruence literature, we propose that each diagram can increase processing fluency and facilitate goal intention when it enables a match with the monetary flow embedded in the financial goal. Specifically, for financial goals involving an inward monetary flow (e.g., saving or earning), a converging diagram provides a match and increases goal intention. In contrast, for goals involving an outward monetary flow (e.g., spending or donating), a diverging diagram provides a match, leading to greater goal intention. Implications for financial decisions are discussed.