The Psychology of Everyday Life: Motivation and the Search For Happiness

The Psychology of Money

So does cognition play any role in financial decisions?

Of course we do use thought when making financial decisions. There is more to our psychology than just our emotions. We use cognition when we plan for the future, analyze complex situations, and calculate numerical amounts (after all, money is based on numbers). However, there are important limits to our analytic capacities and these limitations play out in our financial decisions.


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