The psychology of money: The myths shaping our money decisions

Money makes the world go around - but how rational and smart are we with our money decisions? Science shows that our upbringing, surroundings, and past experience can expose us to a series of biases that makes us less smart with money than we might think! Join us as we uncover a series of money mistakes and bust a bunch of money myths, all in the hope of making you better informed about the psychology of money.

📊 Key research studies we discussed:

• Lottery winners only marginally happier than paraplegics: Lottery winners and accident victims: Is happiness relative? (Journal of Personality and Social Psychology, 1978)
• Emotional wellbeing plateaus at $75K/year: High income improves evaluation of life but not emotional well-being (PNAS, 2010)
• Spending on others makes us feel better than on ourselves: Spending money on others promotes happiness (Science, 2008)
• Time-saving purchases make us happier than material ones: Buying time promotes happiness (PNAS, 2017)
• Women underestimate their financial knowledge, men overestimate it: Overconfidence and investment: An experimental approach (Journal of Corporate Finance, 2017)
• Losing is emotionally twice as potent as winning: Neural markers of loss aversion in resting-state brain activity (NeuroImage, 2017)

📚 Books and other resources:

• The Psychology of Money (Morgan Housel, 2020)

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We thank the South West Doctoral Training Partnership for supporting this podcast and Rhannan Lacey for audiography, videography, and production.