This is a legacy website for the Behavioural Design Lab. It is no longer updated.
Behavioural Design Lab Subscribe Bird Contact

How your emotions can cost you money

Economics, Finance, Psychology, consumer, emotion, money

MONEY Magazine) — If you haven’t been feeling emotional about money lately, you must have an excellent yoga instructor. There have been the rolling freak-outs about unemployment, the debt, and European defaults; meanwhile, investors seem to be inflating a bubble in tech.

George Loewenstein, a professor of economics and psychology at Carnegie Mellon, has devoted his career to figuring out how our complex and often mysterious emotions affect money and life decisions.

His field, known as behavioral economics, is now quite trendy — it’s been embraced by would-be reformers ranging from the Obama administration to Britain’s Conservative Party– but Loewenstein warns that understanding emotions doesn’t lead to easy solutions.

He recently spoke with MONEY contributing writer David Futrelle; the conversation has been edited.

Read the rest of the article...

Related content

The psychology of saving

How Behavioral Science Can Improve Financial Technology Innovations

Show me the money! The behavioural science of reward

© 2015 Warwick Business School and the Design Council
jQuery UI Datepicker - Default functionality