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Claudia Hammond on the Psychology of Money
Video

Claudia Hammond on the Psychology of Money

RSA, 2016

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Editorial Rating

7

Qualities

  • Well Structured
  • Overview
  • For Beginners

Recommendation

Money makes people act in peculiar ways. Psychology lecturer Claudia Hammond examines these irrational behaviors by reeling off known cognitive biases, false assumptions and other mental traps that can cause financial downfalls. Though she aims for breadth rather than depth, Hammond’s lecture offers a clear, organized recap of existing research. getAbstract recommends her quick, useful primer to those who want to achieve “mind over money.”

Take-Aways

  • Money affects how you think, feel and act – more so when it is scarce.
  • People assume they can identify good value. In fact, individuals get easily fooled by price tags, merchandising and marketing tricks, as well as their own cognitive biases.
  • Financially, optimism can work against you. People make the best decisions when they are feeling cranky and when they aren’t “desperate for money.”

About the Speaker

Claudia Hammond is a psychology lecturer, writer and BBC Radio 4 broadcaster.


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