Upon completion of this course, students should be able to do the following: • Demonstrate an understanding of the emerging field of behavioral economics • Explain examples that illustrate how behavioral economics is currently being applied in the financial planning profession • Explain how behavioral economics is currently being applied in current policies directed at improving the financial capabilities of households • Use behavioral economic principles to evaluate and understand the common cognitive errors that individuals make in financial planning
1. Introduction to Behavioral Economics 2. Prospect Theory 3. Procrastination and Self-control 4. Risk Tolerance 5. Time Preference and Irrational Behavior 6. Financial Literacy and Education 7. Household Investment Decisions 8. Neurofinance 9. The Psychology of Trading and Investing 10. Ethics and Dishonesty in Financial Markets