The Behavioral economics

I have a cousin abroad, who was very rational and liberal in his thoughts though he was born in an orthodox family in south Tamil nadu. He used to ask questions about the existence of god and would state that in any given day he would prefer hard work to miracles to make a person successful.  He studied computer science and went abroad to work there, and the environment made him more rational. I was a teen ager when he left to abroad and we would chat occasionally. He was a hero to me at those times, but as I grew up reading and analyzing; I find certain things does not come under this rational thinking. This idea grew stronger once I got to work on the financial sector. The study of psychology or observing trends and people’s behavior is very important to succeed in the business of money. But westerners have this tendency of taking psychology as relatively an easy thing and more often than not they always insert the notions of neuroscience being superior to psychology. That may be because the westerners always link brain functions to psychology. Unfortunately, it is more than that […]

Knowledge about finance

I meet pupils who are in the final and pre-final year students in engineering colleges; I used to ask them one simple question. What if I give you, say an Rs.1900? Per month, what would you do with that? I keep on listening to a set of patterned answers which have two to three options. Some say that they would buy clothes; some to hang out in eat outs and some in purchasing gadgets. They don’t even consider buying a book. When I asked them why don’t they buy books? , they say that their parents are there for them to buy them books. Then diving more into it, if asked what kind of books their parents would buy them, it would be text-book of the stream that they are studying in the college. It is not a bad thing that parents buy those books, but the point is they never read anything that is not associated with marks, grades and credentials. The post here is not about the learning out of syllabus, but it is about the amount of knowledge a student or an Individual has on finance and wealth. Is this one so important? Come let’s explore together […]