Money Mind Games: Why We Make Certain Financial Decisions

Dilshoda Jo’raboyeva Komolxon qizi

Authors

Dilshoda Jo’raboyeva Komolxon qizi student of the University of World Economy and Diplomacy

Keywords:

personal finance psychology, cognitive biases, financial decision-making, behavioral economics, behavioral finance

Abstract

Financial psychology research demonstrates that human behaviors and cognitive processes significantly influence how individuals manage money and make economic choices. This article discusses several cognitive biases and psychological phenomena shown to impact financial decision-making, such as present bias, mental accounting, optimism bias, loss aversion, and social comparisons. Practical strategies for recognizing and mitigating the effects of these influences on consumer choices are suggested. Understanding the psychology of personal finance can help improve financial literacy and well-being.

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