You can lose money for strange reasons like knowledge and sense of control: 5 ways how Dunning-Kruger effect helps in managing your personal finance

The Dunning-Kruger effect is a cognitive bias where those who may not have high abilities or knowledge in an area tend to overestimate their competence and even the outcomes they get.

The problem noticed was that the lower the abilities/ knowledge, the higher the overestimation. This is partly due to the fact that they don’t know what they don’t know!