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Financial Literacy Not a Band-Aid to Change All Factors for Smart Money Management

The Centre for Corporate Law and Securities Regulation in conjunction with The University of Melbourne released a Research Report in March 2011 about Financial Literacy and “What Causes Suboptimal Financial Behaviour? An Exploration of Financial, Social Influences and Behavioural Economics”. This following article will showcase their report and findings. All quotes and data used are … Read more

Dan Ariely and I Sit Down and Talk About the Behavioral Economics of Getting Out of Debt

Dan Ariely, a world recognized behavioral economist and I had an opportunity recently to sit down and talk about a number of issues and underlying unconscious choices that lead people in debt to make good or bad decisions in dealing with debt. Dan talks about the mistakes the financial services industry makes and the best … Read more

Don’t Stop Shopping for Fun When You Can Spend Less and Get a Bigger Emotional Benefit

The other day I was sitting in the office of Dan Ariely at Duke University and we were chatting about behavioral economics from the point of view of getting out of debt. During the conversation the comment was made that if people became aware of the connection between spending and the “high” or good feelings … Read more

Demand for Consumer Debt Rises Says TransUnion

I will boldly go on the record and say that while there have been some fundamental shifts towards minimalism as a result of the economic downturn, those trends will reverse themselves if consumer confidence increases and credit becomes easier to access. I’m not being sanguine here, just a realist. People are emotionally attracted, as a … Read more

Shop-O-Nomics: How the Missing Dollar Sign Makes You Spend More

I’m giving your reading muscles a break today and instead of writing you an article here’s a video based on a study put out by Cornell University in 2009 about the “Effects of Menu-price Formats on Restaurant Checks“. The study suggested that people were more inclined to purchase and spend more if the dollar sign … Read more

Money Can Buy Happiness

For those of you that say money can’t buy happiness. I will tell you today what I’ve said my entire life: I’d like to believe you, but I don’t. The National Academy of Sciences released a research report this past Tuesday that showed people’s happiness and emotional well-being elevated with increasing income levels. The study, … Read more

Are Humans Innately Risky With Money? Or Is It All Just Monkey Business?

Today I bring to you a video from the TEDGlobal 2010 (TED, standing for, Technology, Entertainment and Design, is a small nonprofit devoted to “Ideas Worth Spreading”) in Oxford, England entitled “A monkey economy as irrational as ours”. I will be the first to admit, when I see a video that is just shy of … Read more

If a Woman Touches a Man He’s More Likely to Take Bigger Financial Risks

You may have read the headline for this post and said “of course it does.” But a recent study published in “Psychological Science” found that if a woman patted a man on the shoulder that he would be willing to take higher financial risk than if she had not touched them at all. For women, … Read more

Spending More Than You Can Afford and Sex — It’s a Guy Thing

I was doing a little light reading yesterday and came across a great article all about how guys that are trying to attract women are much more likely to spend a significant amount more of items of conspicuous consumption than guys not trying to get, ah, laid. Seriously. And me, before I leave you feeling … Read more