Applied Behavioral Finance
This course is an applied behavioral finance course examining the intersection of behavioral finance, financial psychology, and financial planning theory, practice, and research. It reviews the research on behavioral finance and investor psychology, exploring the effects of human emotions and cognitive errors on financial decisions. This course focuses on the application of behavioral finance theory and research to the practice of business, financial planning, and financial therapy to help professionals improve the financial health of their clients.
Course Learning Objectives
1. To provide an environment conducive to the study of behavioral finance using written and oral presentations and applied financial psychology theory and techniques.
2. To strengthen students’ ability to understand financial psychology and its implications with regard to financial health of clients and clients’ ability to reach their financial goals.
3. To apply theory and technique to gain a deeper understanding of the student’s own personal financial psychology.
4. Identify cognitive and emotional biases that impact investor behaviors.
5. Describe methods for helping clients identify, challenge, and change cognitive and emotional biases.
6. Learn to apply research findings in behavioral finance to working with clients.
This is an online course through Creighton University worth 3 credits. It is one of five courses in the Certificate in Financial Psychology & Behavioral Finance
Week 1: Intro to Applied Behavioral Finance
Week 2: Cognitive dissonance, Conservatism, Confirmation, & Representativeness
Week 3: Illusion of control, Hindsight, Mental accounting, and Anchoring & Adjustment
Week 4: Framing, Availability, Self-attribution, & Outcome
Week 5: Recency, Loss Aversion, Overconfidence, & Self-Control
Week 6: Status Quo, Endowment, Regret Aversion & Affinity
Week 7: Financial Therapy for Cognitive Biases
Week 8: Applied Behavioral Finance Project
Pompian, M. (2012). Behavioral finance and wealth management: How to build optimal portfolios that account for investor biases, 2nd edition. Wiley Finance.
Klontz, B., Kahler, R., Klontz, T. (2016). Facilitating financial health: Tools for planners, coaches, and therapists, 2nd edition. Cincinnati, OH: The National Underwriter Company.
Articles as assigned.