Why Some People Invest and Others Don't

What makes some people more inclined to invest than their peers?

Steve Wendel 25 October, 2021 | 1:00AM Stan Treger
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Emotional Eggs

On the surface, increasing one's savings can seem as easy as merely clicking a button on a bank's app. Emergency savings are an important lifeline for households to persevere through a financial shock. Even so, saving money is an area where many people struggle.

Researchers often look at sociodemographic variables, such as age or income, to make predictions about people's saving habits. But the decision to save, of course, extends beyond one's basic demographics--our unique psychological profiles spearhead the decisions we make, including decisions about our finances. What does behavioral science teach us about our problem with saving and how we can overcome it?

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About Author

Steve Wendel

Steve Wendel  Steve Wendel is head of behavioral science for Morningstar, where he leads a team of behavioral scientists and practitioners who conduct original research to help people invest and manage their money more effectively.

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