Financial Decision Making

The Drivers of Financial Behavior & Financial Decisions
Recent Findings about Improving Financial Decision Making.

Money isn’t a Mortal Wound? The Impact of Financial Stress!

Money is the most powerful and pervasive secular influence in the world. However how money influences our behavior is for many people still a mystical area and talking about money is taboo. Both in Europe & the United States finances are the number one cause of stress and has been associated with increased levels of illness and domestic violence. Financial stress leads to the development of various fears and other psychological barriers that hinder and prevent normal functioning. In our society we have to deal with finances everyday which entails a daily portion of trigger factors to feed our stress. Financial stress leads to discomfort, difficulties, mental and health problems and can even lead to disorders. The fact that financial stress causes psychological barriers and damage is often overlooked. Financial stress is overlooked and undervalued as a psychological issue that requires support and healing.

(Help others) making better financial decisions starts with…
Changing Perspectives…
Your perspective of financial decision making…

Having sufficient financial knowledge will help individuals navigate in modern society and financial literacy contributes to economic development. Practice has shown us that solely the lack of sufficient financial information is not enough to explain why people don’t make sound financial decisions. Behavioral Finance research provides us with valuable information about how cognitive biases and thinking errors impact financial decision making. It’s very complicated, if not impossible, to create an one size fits all ‘preventing bias model’ which obtains sound financial decision making. Thereby research has not only proven that there are personal emotional connotations around money, but there are many aspects and forces which shapes money attitudes, relationships, ideas, beliefs and behaviors involving money. These aspects influences the financial decision-making process and impact financial literacy. Financial Psychology helps to explain, interpret, and evaluate those aspects of an individual’s personal relationship with money. Financial Psychology helps to understand and predict financial behavior, helping alleviate its maladjustment and promote healthy financial behaviors..

 Let’s Talk About Money
Rather Not in the US, Europa, & Netherlands:

  • Money is a taboo conversation topic.
  • Finances are the number 1 cause of stress.
  • This stress is associated with increased incidences of illness and domestic violence.
  • Quarrel over finances is number 1 cause of divorce.
  • In most cases, people don’t have enough information to make sufficient financial decision.

 Financial Decision Making
Research Shows Most Dutch: 

  • Think they are financially literate.
  • Prefer to gain financial information themselves on the Internet.
  • Are not open to Financial Planning.
  • Are not prepared for financial pitfalls.
  • Have no insight into financial risks.
  • Are not able to make sufficient financial choices.
  • Can’t possibly forsee the consequences of their financial choices.

RESULT: Most people do not oversee their financial future and are not open to financial advice!

Financial Decisions & Acting Rationally.


Universal: The subconscious and unconscious are responsible for 90% of all decisions.


Our sensory system receives more than 10 million pieces of information of which 50 pieces can be consciously processed.


2/3 of the world’s populations
and 34% of the Dutch are financially illiterate.

Financial Consciousness:

Knowledge is needed to be able to distinguish the consequences of different financial choices / solutions. (Morewedge, Shu, Gilbert, Wilson 2009)
It has already become apparent that the lack of adequate information alone is not enough to explain why people simply do not act rationally, even when they have access to adequate information.

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