Talk:Behavioral pitfalls

From Bogleheads
Jump to navigation Jump to search

Articles

Academic Papers

Institutional Research

Broadening the Discussion

Behavioral finance as an academic topic typically focuses on irrational investing behaviors that are common to everyone (to a greater or lessor extent). Think of them as genetic-based, or "Nature" characteristics of people in general.

By accident last year I ran into a "sibling" academic field to Behavioral Finance that is termed Financial Psychology. This area of research looks into irrational financial behaviors that appear to be derived from unusual aspects of personal history, especially experiences while a child. Think of them as "Nuture" characteristics of specific individuals. [Nature versus Nuture, the classic explanation dichotomy.]

Much research in this area is being published by Prof. Brad Klontz. He has written one general audience book on this topic, Mind Over Money - Overcoming the Money Disorders that Threaten Our Financial Health (Broadway Books, 2009), as well as others that are more focused on professionals practicing in this field. I found the book Mind Over Money to be well written and full of insights into helping people recognize and overcome nuture-based financial problems. Prof. Klontz also maintains a website: Your Mental Wealth.

Academic work is being published in the Journal of Financial Therapy.

As this Wiki effort in the behavioral area expands, it would be good to include some of the Financial Psychology research information as well. --ThePrune 18:58, 20 July 2013 (CDT)