TOP NUDGES ON SAVING & INVESTING with Harvard Prof. Francesca Gino
This is an interesting FQwentuhan with my professor at the Harvard Business School (HBS), Francesca Gino, when I took up an executive course on Behavioral Economics. Francesca is an award-winning researcher, and the co-chair of the HBS Executive Programs on Behavioral Economics.
She wrote books such as Sidetracked: Why Our Decisions Get Derailed at How We Can Stick to the Plan and Rebel Talent: Why It Pays to Break Rules at Work and in Life. Her work has been published in The Economist, The New York Times, Newsweek, Scientific American, Psychology Today, Wall Street Journal.
In our discussion, you will hear us talk about System 1 and System 2. This is from the book Thinking, Fast and Slow by Nobel Laureate Daniel Kahneman and Amos Trevsky.
System 1: Our system that thinks fast, operates automatically, involuntarily, sometimes unconsciously. It is effortless and “efficient” in making use of heuristics (rule of thumb). It is prone to biases and systematic errors.
System 2: Our system that thinks slow, operates deliberately, requires solving problems, reasoning, computing, focusing, concentrating, considering various data, and not jumping to quick conclusions. It is an effortful and controlled way of thinking.
These two systems often conflict with each other. In FQ Book 2 Why Financial Education Alone is Not Enough (a crash course in Behavioral Economics) back-to-back with The Psychology of Money, I personify these two systems as Makatwirang Mak (System 2, the rational side) and Emotional Emong (System 1, the emotional side).
This is a short and valuable conversation worth your viewing time. Prof. Gino talks about her favorite nudges on saving and investing, and also her childhood money memory in Italy and other matters that affect our decision-making.
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Attribution:
SEED: A commitment Savings Product in the Philippines
