The course provides a concise overview of behavioral finance. This is a field of study that combines psychology and economics to understand and explain how people make financial decisions. It recognizes that individuals are not always rational and objective when it comes to their financial choices. Instead, they are influenced by various cognitive biases, emotions, and social factors that can impact their decision-making process. The course highlights the psychological and behavioral factors that contribute to irrational and biased money decision-making and discusses strategies for overcoming these biases to make more rational financial choices.

Topics Covered:

  • What is behavioral finance
  • Importance of Behavioral Finance in Investing and Accounting
  • Traditional vs. Behavioral Finance
  • Rationale Investors
  • Efficient Markets
  • Limitations of Traditional Finance
  • Core Principles of Behavioral Finance
  • Market, Investor and Practitioner Inefficiencies
  • Checklist of Common Cognitive Biases and Emotional Pitfalls Related to Finance
  • How to Apply Behavioral Finance Concepts in Real-Life Accounting Situations
  • How to Promote a Culture of Objectivity and Critical Thinking
  • How to Encourage Continuous Learning and Self-Awareness

Who Will Benefit:
This course is intended for anyone interested in improving their financial decision-making skills, including individuals, financial professionals, and business owners. It will be especially useful for those who have struggled with making irrational or biased financial choices in the past.

Learning Objectives
  • Identify and analyze the psychological and behavioral factors that contribute to irrational and biased money decision-making.
  • Discover and classify common cognitive biases that influence financial decision-making.
  • Explore and evaluate the role of mental accounting in financial decision-making.
  • Discover and distinguish the dangers of the ostrich effect in financial planning.
  • Identify and apply strategies for overcoming cognitive biases and emotions in financial decision-making.
  • Recognize and assess the impact of present bias on financial planning.
  • Identify the pitfalls of the sunk-cost fallacy in financial decision-making.
  • Explore and explain the role of anchoring bias in financial decision-making.
  • Discover and differentiate the impact of status quo bias on financial decision-making.
  • Explore and evaluate the dangers of the bandwagon effect in financial planning.
Last updated/reviewed: November 14, 2023
Prerequisites
Course Complexity: Foundational
While no specific knowledge is required to take this course, it may be beneficial to have a basic understanding of financial concepts and terminology.
Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Behavioral Finance for Accountants4:05
  What is Behavioral Finance5:17
  Rational Investors3:20
  Efficient Market and Limitations of Traditional 9:08
  Core Principles of Behavioral Finance11:38
  Checklist of Common Cognitive Biases and Emotional Pitfalls-Part 118:12
  Checklist of Common Cognitive Biases and Emotional Pitfalls-Part 218:52
  Checklist of Common Cognitive Biases and Emotional Pitfalls-Part 319:42
  Case Studies and Questions to be Answered11:36
  Key Takeaways4:20
CONTINUOUS PLAY
  Behavioral Finance for Accountants1:46:10
SUPPORTING MATERIAL
  Slides: Behavioral Finance for AccountantsPDF
  Behavioral Finance for Accountants GlossaryPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam