In elementary school, we learned that opposites attract and had fun seeing that principle in action as we played with magnets in science class. The same level of delight is often experienced when we meet someone who is different from us — the further they are from our end of the spectrum, the more interesting we find them. What we do not expect is the challenge that presents in our approach to finances. Everyone has their own views and tendencies surrounding money, some innate and some learned. Understanding each other is paramount to a couple’s success in this area, and the discipline of behavioral finance is the key.
What is behavioral finance? Investopedia defines behavioral finance as “an area of study focused on how psychological influences can affect market outcomes.” But it is more than that. Have you perhaps wondered why one person is aggressive in their investments, while another is conservative? Or why one is a spender and one a saver? These behaviors, among others, are innate and come from our experience with money, stemming from our childhood.
