cognitive biases Relying on previous experiences can hurt your bank account. Here’s how to change that habit. The term "law of the instrument" was coined in 1964 to describe the cognitive bias that involves relying too heavily on a familiar tool. Here's what that means for your money.
cognitive biases Want to make better financial decisions? Then you’ll need to overcome this bias. The availability bias means collective beliefs become more certain thanks to repetition in public. This can be dangerous to your financial health.
cognitive biases 10 psychological tricks to make you buy more These 10 common psychological tricks are used to make you open up your wallet. Knowing how to identify them might help you keep it closed.
cognitive biases The predictably irrational behavior of economics—and basketball One of the most astonishing examples of the endowment effect occurs on the Duke University campus every year. It's a lesson in patience—and economics.
cognitive biases Retirement savings are down. This cognitive bias is likely to blame. Researchers have long wanted to understand the cognitive and social—as well as economic—consequences of delaying gratification. Present bias helps explain it.
cognitive biases Everyone struggles with inertia. This three-point framework can help you overcome it. Inertia is a powerful cognitive bias that affects all aspects of our lives. The good news: we can overcome it.
cognitive biases Avoiding unpleasant information is no way to treat your money 61% of Americans don't know the interest rate on their credit cards. This is likely due to the cognitive bias known as the ostrich effect.
cognitive biases Why we fall victim to sunk costs—and how to deal with it Classical economics teaches that humans will always make the most logical financial decisions. Sunk cost fallacy is one example of why this isn't true.
cognitive biases Money illusion is a problem. We need more than intuition to combat it. Your dollar is likely not worth the same today as a year ago. The cognitive bias, money illusion, causes us to believe it is.
cognitive biases We all suffer from confirmation bias. Here’s how to change that. Confirmation bias is more pervasive today than ever due to our online lives. Here's how to overcome it.
cognitive biases How zero-sum bias obscures the real problem with money Zero-sum bias is the belief that you can only win when someone else loses. When it comes to finances, this simply isn't true.
cognitive biases Pain is twice as worse as gain: why losses hurt so much The cognitive bias known as loss aversion states that losses hurt relatively twice as much as equivalent gains. Here's why that matters to your wallet.
cognitive biases What do you really value in life—and how do you value the right things? The endowment effect is a cognitive bias that causes us to believe our personal possessions are worth more than market value.
Dark Patterns How scarcity affects your purchasing decisions—and bank account One dark pattern specifically designed to make you spend more money is scarcity. Here's how to fight back.
cognitive biases How the anchoring effect influences your financial decisions (and how to make better decisions) The anchoring effect is a cognitive bias that greatly affects your financial decision-making. Here's what to do about it.