Understanding behavioural economics for personal finance management
Navigating the complexities of personal banking and finance management can be difficult, especially if you fail to account for how the different experiences, biases, emotions, and social influences affect financial decision-making. Behavioural economics – combining the principles of economics and psychology – can help you understand how various factors like cognitive biases, loss aversion, anchoring, gambler’s fallacy, and herd behaviour affect your financial decisions and how you can overcome them. Leveraging the understanding of behavioural finance, finance accounting service providers can tailor the services for their consumers, helping them overcome the hurdles and achieve their financial goals.
