The Two Biases that Keep People from Saving Money

The Psychological Reasons Why People Fail to Save

“Present bias”—the concept that people would rather have a smaller sum of money now than a larger sum of money in the future—is one cognitive bias that keeps people from saving, according to a new paper.  Another problem is “exponential-growth bias,” which refers to a failure to understand compound interest.  Derek Thompson, senior editor at The Atlantic, explains.

To read the full article in the The Atlantic, click: The Two Biases that Keep People from Saving Money.