The Washington Post discusses how many people make financial decisions, noting:
We all know them. The planners who know more about investing and interest rates than you ever will. People who buy insurance for everything and are always thinking about the future.
Well, they may not be as smart with their money as you think.
In fact, the financial decisions many people make may have little to do with how good they are at math or how much they know about 401(k)s and more to do with their emotions. Specifically, financial decisions are strongly influenced by the way people view time, according to a new study by Philip Zimbardo, the psychologist who orchestrated the Stanford Prison experiment in the 1970s.
To read more, see Stressing about money is making you poor – The Washington Post.