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The Latest In Financial Psychology
Financial behaviors, wealth attitudes, and the science of building wealth.
Financial Psychology Assessments: Holding Up The Mirror
“My neighbor is driving me crazy. She always says she’s the most frugal person she knows, but she’s spending every dime on *&#$* at Target. It’s not frugal. It’s stupid.” A friend recently shared this sentiment with me, and it is an excellent example of the fact that some of us aren’t great at evaluating[…]
Gambling With the Assessment of Risk Tolerance
In his “Intelligent Investor” column in the September 7, 2019 print edition of the Wall Street Journal, Jason Zweig wrote about an idea that we’ve thought about a good deal in the recent past: the fact that not all risk tolerance assessments are created equal. In the piece, Mr. Zweig—himself an accomplished and noted author[…]
China Sees Generational Changes In Savings Attitude
In a Wall Street Journal article this week, the perils of debt-supported spending by Chinese Gen Z-ers and millennials were contrasted with the potential benefits of a hyper-charged consumer economy. The upshot from a macro-economic perspective is that while some amount of borrowing can be good for an economy (leading to job creation and more[…]
A Partnership for Financial Wellness
One of the main missions of DataPoints is to help individuals improve the way in which they manage their financial lives using behavioral science. This mission has two important components: first, we have to understand our own patterns of money-related behaviors, personality, attitudes, and other characteristics as a starting point. Then, if we have the[…]
The Investing Mistakes of Millionaires (And The Rest of Us)
Sometime around 2000, I gambled some of my money away while fooling myself into thinking I was doing something very sophisticated. I wasn’t in Las Vegas: I was sitting at my computer buying shares of Krispy Kreme Donuts on eTrade. I had seen the front page of Forbes or Fortune or some other publication touting[…]
The Behavioral Science Toolkit for Financial Services
Understanding financial psychology can help avoid behavioral hurdles.
Identify Wealth Potential
Understand your clients’ patterns of financial behaviors. Enhance client potential to build and maintain wealth.
Assess Money Attitudes
Uncover your clients’ attitudes towards saving, spending, and investing.
Determine Risk Tolerance
Assess risk tolerance by measuring life experiences & behaviors. Give competency-based feedback to clients.