Abby Sussman: Financial Judgment and Decision Making | Rational Reminder 300
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- Опубликовано: 12 июн 2024
- Meet with PWL Capital: calendly.com/d/cpws-jyp-znp
In this episode, we are joined by renowned expert Abby Sussman to unpack how individuals form judgments and make decisions about their finances. Abby is a distinguished professor of marketing at the University of Chicago Booth School of Business whose expertise lies at the intersection of psychology, economics, and finance. In our conversation, we discuss the nuances of financial decision-making and how personal beliefs influence our financial choices. Discover the source of reference points for financial well-being and how expense prediction biases play a role in making poor financial decisions. We explore the effectiveness of budgeting, the nuances of product sensitivity, and the drivers of excessive consumer consumption. Gain insights into navigating the complexities of financial decision-making, the psychology behind it, how AI can help you make better financial decisions, and much more. Tune in to gain a deeper understanding of the psychology behind financial decisions and uncover strategies to optimize your financial future with Abby Sussman!
Timestamps:
0:00:00 Intro
0:05:13 How the way people evaluate their own wealth differs from how they evaluate the wealth of others
0:07:24 Whether having complete information about the other person’s balance sheet resolves the differences in perception
0:10:57 The effect this difference has on how people plan for the future
0:15:09 How someone’s beliefs about their future wealth affect their financial decisions
0:21:47 How people can use this information to make better financial decisions
0:24:09 The problems that stem from inaccurate expense prediction
0:33:45 The interventions that can be used to reduce expense prediction bias
0:38:50 How common budgeting is in general
0:44:24 How frequently people reconcile their actual spending with their budgets
0:48:42 How people respond to having too much or too little slack in their budgets
0:52:48 How attitudes toward debt and investment products vary across consumers
0:59:39 The areas of consumer financial decision making research Abigail thinks will be most impactful in the future
1:07:38 Abigail Defines Success in Her Life
Links From Today’s Episode:
Rational Reminder on iTunes - itunes.apple.com/ca/podcast/t...
podcast/id1426530582.
Rational Reminder Website - rationalreminder.ca/
Rational Reminder on Instagram - / rationalreminder
Rational Reminder on X - / rationalremind
Rational Reminder on RUclips - / channel
Rational Reminder Email - info@rationalreminder.ca
Benjamin Felix - www.pwlcapital.com/author/ben...
Benjamin on X - / benjaminwfelix
Benjamin on LinkedIn - / benjaminwfelix
Cameron Passmore - www.pwlcapital.com/profile/ca...
Cameron on X - / cameronpassmore
Cameron on LinkedIn - / cameronpassmore
Abby Sussman on LinkedIn - / abigail-sussman-ab4427
Abby Sussman on X - / abbysussman
The University of Chicago Booth School of Business - www.chicagobooth.edu/
Society for Judgment and Decision Making - sjdm.org/
Episode 153: Prof. Johanna Peetz - rationalreminder.ca/podcast/153
Epidose 296: Adam Alter - rationalreminder.ca/podcast/296
Panel Study of Income Dynamics - psidonline.isr.umich.edu/
Consumer Financial Protection Bureau - www.consumerfinance.gov/
Papers From Today’s Episode:
‘Understanding and Neutralizing the Expense Prediction Bias: The Role of Accessibility,
Typicality, and Skewness’ - doi.org/10.1177/0022243721106...
‘The Exception Is the Rule: Underestimating and Overspending on Exceptional
Expenses’ - doi.org/10.1086/665833
‘The Role of Risk Preferences in Responses to Messaging About COVID-19 Vaccine Take-Up’
- doi.org/10.1177/1948550621999622
‘The Role of Mental Accounting in Household Spending and Investing Decisions’ -
papers.ssrn.com/sol3/papers.cfm?abstract_id=3051415
‘How Consumers Budget” - doi.org/10.1016/j.jebo.2022.0...
‘Financial Product Sensitivity Predicts Financial Health’ - doi.org/10.1002/bdm.2142 
Хобби
300! Congratulations!
Great conversation. I found the first part on perception of wealth particularly interesting but wished it could have morphed into how people without debt tend to perceive wealth. Seems like Abby would be a great guest to have back. I'd like to hear her speak on subjects like impulse decisions, perception of quality, purchase regrets, and chance.
Thank you, Abigail - fascinating work. With super smart people, I have to set RUclips speed to 0.75 to slow them down just a bit. ;)
This is one of my favorite episodes; everything discussed was fascinating and counter-intuitive in many cases.
Brilliant guest. It's funny, I actually have had this thought process about thinking that others are wealthier and are lax on paying debt. It's like she can read my mind. 😄
300! Way to go! Great episode.
I wish you would do a recap of important stuff said during the podcast at the end. Good job as always.
Congratulations on 300! Abby is insightful.
Congrats!!
Congratulations 🎈
Congratulations! Keep on going guys ❤
See you guys in episode 600
300 thanks! Keep on going.
Nice
Regarding the first topic, if I see someone driving a Bentley or a Lambo, I assume that they are net positive and already have their retirement secured, otherwise it would be insanely stupid to waste those amounts of money on fancy cars. I assume that they aren't that stupid.
Oh they're certainly out there, the stupid people! Personally I give every luxury car owner a 50% probability that they made some sort of stupid decision.
All you can know about someone from what car they are driving is that they are that much poorer than before they made that purchase (unless it was a gift of course).
Often wrong. Assume leverage. A friend’s networth is $10m + drives a newer Buick and lives in a nice but modest condo. They do enjoy a condo in California plus trips and help out family but they live quietly among the masses. I call it stealth wealth.
This video made my day 100% better