Insights into Financial Decision-Making
It’s obviously important for each of us to make sound financial choices. But not everyone has the same choices available. There’s a common misperception that struggling households mismanage finances but research shows the opposite—that many families with tight budgets display high levels of financial discipline and resourcefulness to meet daily needs, pay the bills, and even put money aside. But the constant stress of needing to carefully manage financial resources and long-term financial distress can diminish otherwise savvy people’s ability to make good financial decisions, especially for the long term.