The messy realities of financial decision making and the policy implications for reducing financial vulnerability

Sally Dibb, Alessandro Merendino, Hussan Aslam, Lindsey Appleyard, Will Brambley

    Research output: Contribution to conferencePaper

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    Following the 2008 Global Financial Crisis, the financial security of individual consumers has been viewed as vital to economic stability. Policy makers have focused on developing financial literacy to ensure the public has the financial capability needed to underpin ‘good’ financial decisions and avoid becoming financially vulnerable. However, this approach has been criticised for not fully considering the behavioural factors that influence how consumers manage their money. Through a qualitative study of consumer financial decision-making, we gain deeper empirical insights into the emotions, context, and other behavioural factors which drive financial behaviours. We contribute conceptually by extending thinking on ‘muddling through’ decision- making to the personal finance context, revealing showing that what consumers consider to be rational may not align with an economic view of rationality. Questions are raised about whether whether current policy is sufficiently aligned with the factors driving consumer financial behaviour and the implications are considered.
    Original languageEnglish
    Publication statusPublished - 2 Sept 2020
    EventBAM Conference in the Cloud 2020: Innovating for a Sustainable Future - Oxford Road, Alliance Manchester Business School, Manchester, United Kingdom
    Duration: 2 Sept 20204 Sept 2020


    ConferenceBAM Conference in the Cloud 2020
    Abbreviated titleBAM2020
    Country/TerritoryUnited Kingdom
    Internet address


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