Peer pressure – and shame – can push people to do the right thing, explains the latest podcast from Freakonomics Radio. In it, experts explain that people tend to look around them at what others are doing as a shortcut when making a choice. These peer effects can influence financial decisions as well, as detailed on eZonomics here, here and elsewhere.
What lessons can we learn from the economics of happiness? An article in The Atlantic details 10 findings – including the happiness boost we get from having a job and happiness erosion from inflation. Its final point? “Debt sucks.” Or more precisely, having a lot of credit card debt correlates strongly with anxiety and depression.
Scientific thinking can help with money management, according to the Mind Your Decisions blog. In a post, it gives science-inspired suggestions that may help overcome “irrational” decision-making. It suggests, for example, getting friends to peer review major choices – in a similar manner to reviews of scientific research.