Wealth Versus Income: The Psychological and Behavioral Differences

Wealth Versus Income: The Psychological and Behavioral Differences

I recently had a conversation with my teenage daughter where we had reason to consider the financial situation of an elderly couple that are family friends. My daughter became aware that this family had an (undisclosed) amount of money to live on for the rest of their lives, and that was it. She made an[…]

Being Agreeable: The Last Thing You Need When Building Wealth

Being Agreeable: The Last Thing You Need When Building Wealth

Let’s Agree to Disagree Agreeableness is a personality trait that is often overlooked or misunderstood when managing our financial lives. The field of personality psychology generally recognizes five primary personality traits that are understood to form the basic foundation of individual personality (often referred to as “the Big Five” or “OCEAN model”). These include openness[…]

Investing State Versus Trait

Investing State Versus Trait

If you have watched a fintech product demo that includes anything remotely related to financial psychology, you might hear the word “personality” thrown around a lot. For example, I heard one very confident salesperson recently refer to his platform as measuring “investor personality” when the tech was measuring the client’s current feelings about investing. Personality characteristics[…]

The Financial Planner Schema

The Financial Planner Schema

What is a swim meet? Maybe you’ve never been to one, but I’ll bet that you have a concept in your head for what a swim meet is like. It may not be accurate or have been created from any direct experience, but you have some idea, or schema, for what a swim meet includes and[…]

Fundamental Attribution Error

Fundamental Attribution Error

Our latest financial psychology term describes how we can sometimes fall prey to errors in decision-making about others. The American Psychological Association defines fundamental attribution error this way: the tendency to overestimate the degree to which an individual’s behavior is determined by his or her abiding personal characteristics, attitudes, or beliefs and, correspondingly, to minimize the[…]