Scribd Logo
Upload

Welcome to Scribd!

  • 99 views

    The Psychology of Money

    Uploaded by

    Christian Birla
    The document discusses how different parts of the brain influence financial decisions. The prefrontal cortex encourages sensible choices like saving and investing, while the nucleus accumbens can encourage addictive or vain spending. The limbic system controls emotional responses to finances and triggers the fight or flight response during financial stress.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    The Psychology of Money

    Uploaded by

    Christian Birla
    99 views7 pages
    The document discusses how different parts of the brain influence financial decisions. The prefrontal cortex encourages sensible choices like saving and investing, while the nucleus accumbens can encourage addictive or vain spending. The limbic system controls emotional responses to finances and triggers the fight or flight response during financial stress.

    Original Description:

    The study of the psychology of money is known as “neuroeconomics”. Studies show very intriguing facts about how our brains process money matters. Let’s see the areas that influence and execute our financial decisions in the Brain. Read to know more.

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses how different parts of the brain influence financial decisions. The prefrontal cortex encourages sensible choices like saving and investing, while the nucleus accumbens can encourage addictive or vain spending. The limbic system controls emotional responses to finances and triggers the fight or flight response during financial stress.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    99 views7 pages

    The Psychology of Money

    Uploaded by

    Christian Birla
    The document discusses how different parts of the brain influence financial decisions. The prefrontal cortex encourages sensible choices like saving and investing, while the nucleus accumbens can encourage addictive or vain spending. The limbic system controls emotional responses to finances and triggers the fight or flight response during financial stress.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 7

    The Psychology

    of Money
    The study of the psychology of money is known as
    “neuroeconomics”. Studies show very intriguing facts
    about how our brains process money matters.
    Let’s see the areas that influence and execute our financial
    decisions in the Brain.
    The Prefrontal
    Cortex
    The Wise Money-Master
    Associated with: Planning, decision-making,
    controlling impulsiveness.
    Encourages: Sensible, feasible monetary choices and
    a desire to save more.
    Discourages: Unnecessary splurging and excessive
    expenditure.
    Decisions like investing in SIPs, Mutual Funds,
    budgeting, timely bill payments originate here.

    Prefrontal
    Cortex
    Nucleus Accumbens
    The Trickster
    Associated with: Positive emotions like happiness
    and euphoria -BUT
    Encourages: Addictive activities like gambling or
    vanity spending.
    Discourages: Saving and planning expenses.
    In the world of finance, activities like short-term
    trading, short selling, leverage investing stem from
    here.

    Nucleus
    Accumbens
    Nucleus Accumbens
    The Misunderstood One
    Associated with: Negative emotions of fear, pain,
    anxiety, anger - BUT
    Encourages: Alertness, cautious and careful use of
    money.
    Discourages: Suspicious investment schemes and bad
    monetary decisions.
    Indirectly encourages you to save more with balanced
    investing choices that are supported by proper
    research and alertness.

    Insula
    The Limbic
    System
    The Action Master
    Consists of the amygdala, the hypothalamus, the
    thalamus, and the hippocampus.
    Often under high pressure for those in debt or other
    financial crisis.
    Triggers “fight or flight” response in the body when
    stressed.
    Prolonged stress may damage the hippocampus
    leading to memory problems.

    Thalamus
    relay information

    Hypothalamus
    homeostasis

    Amygdal
    a
    emotion
    Hippocampus
    memory
    conversion
    So What Are You
    Thinking?
    Mutual Fund investments are subject to market risks,
    read all scheme related documents carefully.

    You might also like