Instructor: Helen A. Andrews at the UW
terms and themes
- There is a positive relationship between risk and return
- Cognitive biases
- Status quo bias - if it ain’t broke, don’t fix it
- Heuristics - decision-making shortcuts
- Procrastination - placing more value on the present at the expense of the future
- Hyperbolic discounting - “now” makes us impatient
- Loss aversion - we fear loss more than we value gain
- Confirmation bias - beware the special case
- Goals
- Financial risk
- Emergency funds
- Investments
- Taxes
- Loans