How Psychology Influences Financial Decisions: Understanding the Emotional Side of Money (Ep. 26)
Your past experiences, emotions, beliefs, and mindset can have a powerful influence on how you spend, save, invest, and make financial decisions, even when the numbers seem straightforward.
In this episode, Jamie Hopkins and Kate Duffy explore the growing field of financial psychology, examining how emotions, behavioral patterns, and money beliefs shape financial decision-making. They discuss the lasting impact of childhood experiences, scarcity mindset, spending habits, and unconscious money scripts on financial behavior. The conversation also explores why financial education alone often isn’t enough to change behavior, how intentional spending can align money with personal values and goals, and why self-awareness is critical for making better financial choices before emotions take over.
Key points:
- How financial psychology connects thoughts, emotions, beliefs, and past experiences with everyday money decisions
- Why knowing the financially appropriate choice doesn’t necessarily mean you’ll feel ready to follow through with it
- How childhood money experiences can continue shaping spending, saving, debt, and feelings of scarcity later in life
Resources:
- The Psychology of Money by Morgan Housel
- The Art of Spending Money by Morgan Housel
- The Soul of Wealth by Doctor Daniel Crosby
Connect with Bryn Mawr Trust:
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- LinkedIn: Bryn Mawr Trust
- Website: Bryn Mawr Trust
Connect with Kate Duffy:
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