Money is the widely adopted medium for the exchange of value in our game of life. It has become an overarching fitness payoff sometimes ahead of health and happiness. For years, law makers, financiers and educators have been trying to teach people the truth about money. That it has a set of properties and behaves in a certain way within time, space and motion. The challenge with this approach is that these methods do not correlate with the way people respond to the world about them. We respond not to the truth but to the reward of fitness payoffs. This has important ramifications for how we approach financial fitness
Ten cognitive biases around money
Research focused on people’s decision-making process around money reveals many blind spots that impact not only personal financial stability, but also influence the entire ecosystem. In this blog, the first of two parts, we look at ten mental biases around money and how they shape interactions with money, banking products/services, and financial institutions in general.