Did You Know?Financial illiteracy cost the average American $1,634 in 2020Jeff Kreisler is a highly-regarded behavioral scientist, current Head of Behavioral Science at JP Morgan, Founder of PeopleScience.com, award-winning comedian, and best-selling author of several books.One of them, “Dollars and Sense: How We Misthink Money and How to Spend Smarter”, explores the psychology of money and financial behavior.  In this episode we discuss strategies to make better financial decisions, common irrational behaviors which influence our choices, how credit cards and subscription services have changed our relationship with money, the “IKEA effect”, money as a measure of success, among other topics.====================  0:00 Intro02:10 How Jeff became involved in behavioral economics04:50 Classical economics doesn’t account for the human element07:03 Everybody makes money mistakes08:28 Opportunity cost is the theoretical bedrock of financial decisions11:07 Behavioral science and financial advisory 12:32 JC Penney’s pricing tactics 14:42 How comparison and price relativity affects us  18:01 The pain of paying 21:56 Be judicious about significant purchases not every little purchase23:13 Anchoring and over-valuing what we have 28:03 The “American Dream” as a social anchor 29:48 Prospect theory and loss diversion 31:42 The IKEA effect34:16 How we measure the fairness of a price  35:55 Why do people love Uber?37:01 Picasso story on demonstrating your value 40:12 How marketing language sets expectations 44:06 Money is an easy way to assess our success, but a flawed one49:09 Strategies to make better financial decisions 53:10 Connect with your future self 54:14 There’s no shame in talking about money and our mistakes 56:23 Wrap-up 56:44 One final question ==================== References: “Dollars and Sense: How We Misthink Money and How to Spend Smarter” by Dr. Dan Ariely and Jeff Kreisler https://amzn.to/3a2GHRJhttp://jeffkreisler.com====================  To help make a difference, follow us for weekly episodes! Search for books by our guests on our website and sign up for the “Rising Weekly” to receive a Friday email “where we enrich episodes”.  If you believe our podcast has ever shifted your perspective, please share it with someone you know and rate us.  Thank you so much for tuning in and we welcome you back to our next episode. ==================== Instagram: https://www.instagram.com/risinglaterally/Twitter: https://twitter.com/RisingLaterallyApple Podcasts: https://podcasts.apple.com/us/podcast/rising-laterally/id1524717120 Spotify: https://open.spotify.com/show/3hbMEHVOZJVMdCZBhthTIh  YouTube: https://www.youtube.com/channel/UCaIDpt943-sihvPBxX7oXaw

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