Advanced Skill Certificate in Behavioral Economics for Behavioral Financial Planning
Published on June 24, 2025
About this Podcast
HOST: Welcome to our podcast, today we're talking with Dr. Jane Smith, an expert in behavioral economics and the instructor of the new course, "Advanced Skill Certificate in Behavioral Economics for Behavioral Financial Planning." Dr. Smith, can you tell us what attracted you to this field? GUEST: Absolutely, I've always been fascinated by how people make financial decisions, and behavioral economics helps us understand the underlying cognitive biases and heuristics that drive those choices. HOST: That's interesting. Can you share an example of how cognitive biases impact financial planning? GUEST: Certainly. One common example is loss aversion, where people tend to prefer avoiding losses over acquiring equivalent gains. This can influence investment decisions and make clients reluctant to sell losing investments. HOST: How does understanding prospect theory give financial advisors a competitive edge? GUEST: Prospect theory explains how people value gains and losses relative to a reference point, like their current portfolio value. By applying this understanding, advisors can frame investment opportunities more effectively and align with their clients' decision-making processes. HOST: In your experience, what are some challenges financial professionals face when incorporating behavioral insights into their practice? GUEST: The main challenge is overcoming our own biases as advisors. It's essential to recognize and manage our cognitive shortcuts to provide unbiased, client-centered advice. HOST: Where do you see the future of behavioral finance going in the financial planning industry? GUEST: I believe behavioral finance will become a standard part of financial planning education, and we'll see more emphasis on emotional intelligence, empathy, and communication skills in addition to traditional financial analysis. HOST: Dr. Smith, thank you for joining us today and sharing your insights on the "Advanced Skill Certificate in Behavioral Economics for Behavioral Financial Planning" course. It's clear that understanding behavioral economics can significantly enhance financial planning practices. GUEST: Thank you for having me. I'm excited to see more financial professionals embracing behavioral finance and using these advanced skills to improve client outcomes.
