Course 3410 lessons

Behavioral finance: why we make bad money choices

The named mental shortcuts, loss aversion, anchoring, herd mentality, and more, that quietly steer your money decisions, plus how marketers exploit them and how to catch yourself before they cost you.

Loss aversion: losing hurts more than winning feels good

Behavioral economists have a name for a pattern almost everyone recognizes once they hear it: losing ₱1,000 feels roughly twice as painful as gaining ₱1,000 feels good. This is called loss aversion, and it's one of the most well-documented biases in how people handle money, discovered by researchers studying why our financial choices don't match simple math.