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Money is a Head Game – By Mandi Woodruff

October 17, 2014

What if the answer to solving most of your money problems was all in your head?

According to the field of behavioral economics, humans are practically hard-wired to overspend and let their emotions steer their financial decisions (often in the wrong direction). The pull of our emotions can be so strong that even when facts are presented clearly to us — we must save for retirement, we must not spend more than we earn — again and again, we find ourselves falling short.

In “THINKING MONEY: The Psychology Behind our Best and Worst Financial Decisions,a new documentary that aired on public television this week, a team of behavioral economists and financial experts help pick apart the human brain in an effort to reveal exactly how it can so often work against us — and what we can do to stop it.

“The ability of the emotional mind to overcome the rational side of our brain is the scary thing,” says Gerri Walsh, president of the FINRA Investor Education Foundation, which sponsored the film. “We wanted to translate these concepts into plain English and also give individuals something they could do to help them overcome them.”

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