Why Your Brain is Bad at Money (Behavioral Economics Explained)

Dive into the fascinating world of behavioral economics, where psychology meets financial decision-making! In this video, we explore how our emotions and cognitive biases shape the way we spend and save money. Discover why we often act irrationally, straying from traditional economic theories, and learn about key concepts like loss aversion, which explains why losses hit harder than gains. We'll also break down heuristics-mental shortcuts that help us make quick decisions but can lead to systematic errors. Plus, we'll examine the powerful influence of social factors on our financial choices. Join us to understand how these insights can enhance your financial decision-making and inform better policy design! Don't forget to like, subscribe, and hit the notification bell for more thought-provoking content!

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