What is Financial Psychology?

In the field of finance, the term “Behavioral Finance” has become increasingly popular. This area of study delves into the impact of psychological factors on the financial markets. However, it is just one part of a broader field called Financial Psychology.

Financial Psychology is a comprehensive exploration of the motivations behind our financial actions. It is the study of why we do what we do with our money and how money influences people. It examines the cognitive, social, cultural, and emotional factors that shape individuals’ financial choices. By developing a deeper insight in the driving forces behind our financial decisions, we can equip ourselves to make more informed and sound financial decisions.

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