Why People Are Irrational, Biased and Emotional With Money

Overview

In this course, we will explore the psychological and behavioral factors that contribute to irrational and biased money decision-making. We will examine the role of cognitive biases and emotions in financial decision-making, and discuss strategies for overcoming these biases to make more rational financial choices. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Course Instructor: Garrett Wasny, MA, CMC, CITP/FIBP

Highlights

The major topics covered in this course include:

Common irrational money decisions

Cognitive biases and their impact on decision-making and ethical behavior

Mental accounting

The ostrich effect

Present bias

Sunk-cost fallacy

Anchoring bias

Status quo bias

The bandwagon effect

Emotional responses in money decisions

Prerequisites

While no specific knowledge is required to take this course, it may be beneficial to have a basic understanding of financial concepts and terminology.

Designed For

This course is intended for anyone interested in improving their financial decision-making skills, including individuals, financial professionals, and business owners. It will be especially useful for those who have struggled with making irrational or biased financial choices in the past.

Objectives

After attending this presentation, you will be able to…

Recognize the psychological and behavioral factors that contribute to irrational and biased money decision-making
Identify common cognitive biases that impact financial decision-making
Identify the role of mental accounting in financial decision-making
Recognize the dangers of the ostrich effect in financial planning
Use strategies for overcoming cognitive biases and emotions in financial decision-making
Recognize the impact of present bias on financial planning
Recognize the pitfalls of the sunk-cost fallacy in financial decision-making
Identify the role of anchoring bias in financial decision-making
Recognize the impact of status quo bias on financial decision-making
Recognize the dangers of the bandwagon effect in financial planning

Preparation

None

Notice

This course is provided by a third-party vendor. Please note that login instructions will not be available in the ‘My Upcoming CPE’ section of the NESCPA website. Instead, the login instructions will be sent directly to you via email by CPA Crossings. Upon completing the course, your hours will be recorded in the ‘My CPE Tracker’ section of the NESCPA website.