Why People Make Poor Financial Decisions
Taught by Douglas Tsoi
Why do seemingly rational people make irrational financial decisions? What triggers the impulse to ignore common sense and act against our self-interest? The emerging field of behavioral economics studies the predictably irrational financial behavior. We’ll examine how people fall into common patterns of thinking in how we spend, save, borrow, invest, and waste money. We’ll also talk about how our family histories play into how we understand and value money. This fun and interactive course will open your eyes to how you can better make better financial decisions.
You will learn to:
- Save money by avoiding common traps.
- Make better investment decisions by not buying and selling on emotion.
- Create better financial health by understanding where your feelings about money come from.
Week 1: How Framing and Mental accounting are negatively impacting your life.
Week 2: Recognizing status quo bias and statistical illiteracy and improving your decision making
Week 3: How to overcome the extremely powerful habits of anchoring, confirmation bias, and male overconfidence.
Week 4: Understanding family histories and the emotional content of money.