Your Attention to Money
What causes you to check up on your money?
An A+ academic journal, Review of Economics and Statistics, has accepted for publication research linking financial patterns and financial attentiveness.
In turn, this raises questions about the efficacy of government-funded financial literacy programs. That means your taxes are involved.
More on the authors’ findings in a near future post. But let’s consider you.
What are your financial patterns?
Consider two contrasting financial activities we share.
If you direct deposit your employment pay, do you go to your financial app to ensure it was received?
If you received a notification from your credit card company that your minimum payment is past due, how do you respond? Should you set the information aside or address it immediately?
Whether households remain engaged with their finances, regardless of the activity, is a proposition to be tested.
I write about personal finance, so it is generally top of mind. Most readers of personal finance are looking for a solution to a specific question. More of us should have a baseline financial plan; few of us do.
The chance that a friend, financial advisor, or, God forbid, a Substack investment newsletter can find an investment that makes us rich is engaging: nothing like greed and envy to drive behavior.
Knowing our natural response to financial activities is as important as knowing our taste for risk.
Think about your financial attentiveness. Level the goods and the bads. Better decision-making will result.
When you’re ready, I can help you create a baseline financial plan. Schedule a free 15-minute call to learn more.