Why Some People Invest and Others Don't

Our unique psychological profiles spearhead the decisions we make, including decisions about our finances and investments

Steve Wendel 26 October, 2021 | 9:00AM Stan Treger
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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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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Steve Wendel  is Head of Behavioural Sciences for Morningstar