Why People Are Irrational, Biased and Emotional With Money

Overview

In this course, we will explore the psychological and behavioral factors that contribute to irrational and biased money decision-making. We will examine the role of cognitive biases and emotions in financial decision-making, and discuss strategies for overcoming these biases to make more rational financial choices. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Prerequisites

While no specific knowledge is required to take this course, it may be beneficial to have a basic understanding of financial concepts and terminology.

Objectives

After attending this presentation, you will be able to...

• Recognize the psychological and behavioral factors that contribute to irrational and biased money decision-making
• Identify common cognitive biases that impact financial decision-making
• Identify the role of mental accounting in financial decision-making
• Recognize the dangers of the ostrich effect in financial planning
• Use strategies for overcoming cognitive biases and emotions in financial decision-making
• Recognize the impact of present bias on financial planning
• Recognize the pitfalls of the sunk-cost fallacy in financial decision-making
• Identify the role of anchoring bias in financial decision-making
• Recognize the impact of status quo bias on financial decision-making
• Recognize the dangers of the bandwagon effect in financial planning

Highlights

Common irrational money decisions

Cognitive biases and their impact on decision-making and ethical behavior

Mental accounting

The ostrich effect

Present bias

Sunk-cost fallacy

Anchoring bias

Status quo bias

The bandwagon effect

Emotional responses in money decisions