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, ex ...
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