What is Financial Psychology?

Financial psychology is the study of the mind and behavior as it relates to spending, saving, and investing decisions. Financial psychologists apply psychological theories, methods, and practices to the areas of personal finance and financial services. The field takes into account both individual differences in money-related behaviors and decisions as well as client psychology, that[…]

Partnering with the Financial Therapy Association

Few would argue that the relationship between our financial psychology and the decisions we make about money-related matters is weak. Many of us know what the “right” answer is when it comes to our saving, spending, and investing behaviors, but the translation from what we know we should do and what we do can be[…]

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[…]

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 (our financial psychology). Then, if[…]