Course Description
The financial planning decisions of families from the perspective of behavioral economics. Behavioral economic models are applied to examine how families manage or mismanage their finances. Students in this class will explore these issues through assigned readings, case studies, exams, and homework assignments.
Additional Requirements for Graduate Students:
Graduate students will conduct research on a behavioral economic
topic as it relates to a financial planning issue, prepare a 10-
page paper with a minimum of 10 references and present findings
to the class in a solo presentation.
Athena Title
Behav Econ Finan Plan for Fam
Equivalent Courses
Not open to students with credit in FHCE 4270E or FHCE 6270E
Semester Course Offered
Not offered on a regular basis.
Grading System
A - F (Traditional)
Course Objectives
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
Topical Outline
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