Why do so many people struggle to make sound financial decisions?
Next Billion interviewed Alexandra Fiorillo, a vice president at United States-based research group Ideas42, and asked why. Fiorillo argued that financial products need to be better suited to the existing behaviour of clients – such as bank accounts that cater to the ways people think and act rather than accounts that force people to change.
I give therefore I am
A 2013 study by economists at the Norwegian School of Economics examines what motivates moral behaviour, such as giving to charity. Among other findings, it suggests that people who give larger donations prefer their activity to be known to the person or group that receives the donation. People giving smaller donations tend to prefer not to inform recipients of their generosity.
Children who are given pocket money are much less likely to save later in life than those who have part-time work such as a paper round, according to a study by the Royal Economic Society that tracked the spending habits of children over several years. Released in 2013, the study claims “parents’ saving behaviour does not influence that of their children” and that savings habits learned in childhood appear to have long-lasting effects in terms of financial behaviour and decision making when they grow up.