Your Money: Understanding our Brains with Money

The Morning Show

Kathy Sweedler from the U of I extension economics department joins the Morning Show and in this week’s Your Money, she is discussing understanding our brains with money.

Researchers have found that people brains tend to work certain ways when faced with decisions. Understanding how our brains work allows us to think about how to frame our decisions to best support our goals. For example, most people’s brains are wired to want positive things to happen in the short-term. So, when we are working towards long-term goals, it can help us to be aware of this. That’s why many financial professionals suggest that people use automatic savings (such as payroll deductions) for retirement when possible. This way we don’t have to make the decision to save in the future over and over again.

People really don’t like losses. Behavioral economics research has also found that we don’t like to lose opportunities. The next time you see an advertisement that says something like, “This deal is only good for the next 24 hours,” remember that this is a ploy to trigger your brain to fear the loss of this opportunity. By being conscious of this trigger, you can overrule it and say, “I didn’t want that item anyways!”

They’ll be hosting three movies, each followed by a discussion with U of I educators and experts from organizations in our community. Join for top-rated documentaries, free popcorn, and insightful discussion. Each film will be shown at 6 p.m. at the Champaign County Extension Auditorium. 1.5 CEUs for allied health professionals are available for $15 for each program.

The series will kick off on Tuesday, May 15, with Thinking Money: The Psychology Behind Our Best and Worst Financial Decisions

Thinking Money explores:

Ways behavioral biases affect your financial decisions.

How a good nudge can help you achieve your financial goal.

How technology can be embraced to help you save money.

Register at: go.illinois.edu/FilmSeries

Copyright 2020 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.