Financial Psychology

The aim of this course is to introduce the most current theoretical and practical knowledge on the consequences of cognitive, emotional, cultural, and social factors on people's financial decisions and behavior. During this course we will draw from the most influential research performed in the area of economic psychology and behavioral economics to better understand our daily choices related to money.

This course will introduce the most current knowledge in financial psychology. We will discuss a variety of issues related to money and financial behaviors, such as individual differences in approaching money, psychological and emotional mechanisms of money perception (e.g. illusion of money), symbolic meaning of money, attitudes towards money, irrational financial behaviors (e.g. time discounting, mental accounting), influence of money on motivation and happiness, the ethics of money behavior, property and ownership, self-control, fairness, risk taking, gambling, investing. All this will be achieved in an experience-based classroom environment. We will learn through real-life examples, case studies, videos, and hand-on classroom experiences. The focus is put on acquisition of both theoretical knowledge, as well as skills to be used in everyday life.

References (selected chapters from):

 Argyle, M., Furnham, A. (1998). The psychology of money. Routledge.

 Bijleveld, E.H., Aarts, H. (Eds. 2014). The psychological science ofmoney. Springer Verlag.

 Kirchler, E. & Hoelzl, E. (2018). Economic psychology: An introduction.Cambridge, UK: Cambridge University Press

 De Cramer, D., Zeelenberg, M., & Murnigham, J. K. (2010). Socialpsychology and economics. Mahwah, NJ: Psychology Press

 Wilkinson, N. & Klaes, M. (2012). An introduction to behavioraleconomics (2nd Ed.). New York, NY: Pelgrave Macmillan

 Furnham, A. (2014). The new psychology of money. Routledge.

 Jansson-Boyd, C., Zawisza, M. (Eds. 2016). Routledge InternationalHandbook of Consumer Psychology. Routledge.

 Jansson-Boyd, C. (2011). Consumption matters. A psychologicalperspective. Palgrave.

 Muller, A., Mitchell, J.E. (Eds. 2011). Compulsive buying. ClinicalFoundations and Treatment. New York, London: Routledge.

Knowledge:

 Students understands the complexity of money and its role in human life

 Student understands the theoretical approaches to financial behavior of laymen and experts

 Student knows and understands the main concepts and theories related to financial psychology

Abilities:

 Student is be able to accurately assess and analyze people’s problems related to money, and propose effective strategies for coping with them.

 Student is able to apply the theoretical knowledge to describe and analyze the non-economic reasons of financial behaviors

 Student can adequately interpret, explain and critically analyze social phenomena associated with symbolic meaning of money

Social skills:

 Student is able to analyze people’s financial behaviors and motives

 Student understands the social consequences of using money for inter- and intrapersonal regulation

1. Class participation and involvement in class projects (including attendance, group projects, e-learning activities, in-class tasks, discussions) - 40%

2. Midterm exam - 20%

3. Final exam - 40%

Attendance is a necessary condition to pass the class. Two unexcused absences and two absences with excuse are acceptable. More absences for a semester mean that the student will not be able to pass the course.

Students must respect the principles of academic integrity. Cheating and plagiarism (including copying work from other students, internet or other sources) are serious violations that are punishable and instructors are required to report all cases to the administration.