Behavioral Finance - Understanding Our Savings Behavior

The Psychology Behind Spending, Saving, and Financial Decision-Making

Why do high earners sometimes struggle to save, while others with modest incomes build wealth? The answer lies not in income, but in behavior. This course explores the psychological and social forces that shape our financial decisions—often without us realizing it. Blending insights from behavioral science, psychology, and personal finance, students will examine how beliefs, thoughts, and habits influence savings, spending, and long-term financial outcomes.

Through engaging activities and real-world examples—including classic experiments like Asch’s conformity study and Milgram’s obedience trials—students will investigate how groupthink, authority, and social norms drive everyday financial behaviors. The course also covers practical barriers to saving, such as procrastination, information overload, and inertia, and introduces effective solutions like automatic enrollment, the Save More Tomorrow program, and target-date retirement funds.

Students will gain tools to identify and overcome behavioral biases, improve their decision-making at key life moments, and understand how personality and risk tolerance affect financial planning. Whether you're just starting your financial journey or looking to better understand the human side of money, this course will challenge assumptions and offer strategies for building a stronger, more intentional financial future.

No prior finance experience is required—just a willingness to reflect, learn, and think differently about money.