Instructor for this course
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Behavioral finance has shown that all people, even financial experts, are prone to making irrational and suboptimal financial decisions. It also explores how people have wants that extend far beyond traditional finances' assumption of wanting the highest return at the lowest risk. We are not perfectly rational economic robots; we are easily driven by many wants and emotions while working with limited time, knowledge, and energy.

This course explores many of the thinking errors and biases exhibited by all people, even the experts. You'll be able to identify the nonfinancial wants that drive the financial decisions of your clients. We'll then identify ways to improve financial decision-making in the contexts of personal financial planning and business financial management.

You'll learn from an author that teaches these concepts to MBA students at a university as well as to business advisors and staff. He is a CPA that's been a CFO of multiple companies. Rob also has a master's degree in personal financial planning and a graduate certificate in financial therapy. He served as program manager for a group of investment advisors.

This course leads you from foundational finance concepts to practical applications in both personal finance and business finance.

Course Key Concepts: Finance, Behavioral Finance, Economics, Personal Financial Planning, Personal Finance, Business Finance, Business Financial Management, Business Management, Business Planning, Pricing.

Note:This course is also available in Text Based format. https://www.illumeo.com/courses/behavioral-finance-introduction-insights-text-based-course

Learning Objectives

  • Recognize common behavioral finance biases and heuristics.
  • Identify ways to reduce thinking errors caused by biases and heuristics.
  • Discover and recall differences between traditional finance and behavioral finance.
  • Identify negative financial impacts of finance biases and heuristics.
Last updated/reviewed: May 22, 2022

18 Reviews (58 ratings)Reviews

5
Anonymous Author
This course presents the information in a cler and concise manner.
5
Member's Profile
This is an excellent course for someone desiring to make prudent choices in almost every major financial arena in life especially when it comes to investing and retirement. In addition, this lecture does a great job reminding the realities of human nature and what we are naturally proned to subconsciously in our day-to-day financial decision-making tasks.
5
Member's Profile
This was the best CPE class I've taken in a decade. It really taught me how to re-evaluate my thought process on many things, not just investment related. The knowledge received from this class is something I truly believe will provide me with a competitive advantage in my profession and in dealing with people on a day-to-day basis.
5
Anonymous Author
There is a lot of content in this course. Some ideas are only quickly reviewed, however, it is such a good starting place if you want to dive deeper on any of the topics. I know I will be returning to the videos and materials for review in the future.
5
Member's Profile
Fascinating topic delivered in a very effective way. It was a lot of information, and the biases were hard to keep straight, but the course is a good starting point for future CPE courses. the instructor was engaging. Highly recommend.
5
Anonymous Author
Really like this presenter. Nice overview of behavioral finance. Course was a nice foil to all the technical offerings we normally consume - gives a nod to all the unseen human factors that influence financial decision making.
5
Member's Profile
This is the best Behavioral Finance Course I've taken. The instructor was clear, concise, funny and used real world applications. I look forward to taking more of his courses.
5
Member's Profile
Very interesting and useful info! I found the class easy to listen to and enjoy and feel like I really got some different perspective and new information out it.
5
Member's Profile
Very well explained course material; no special previous understanding of finance and accounting matters is needed to learn many valuable ideas from this course.
3
Member's Profile
The pace of the instruction was too fast causing the need for frequent pausing and replaying of the video. This was cumbersome.
5
Anonymous Author
Awesome course! Very thorough and includes up-to-date research ideas in the field of behavior economics
5
Member's Profile
Liked the slides and how the information was organized. Questions were clear and concise
5
Member's Profile
Very good comprehensive course to help understand client and colleague mindset.
5
Member's Profile
I really appreciated the in-depth look at the types of biases and heuristics.
5
Member's Profile
The class was interesting and broken into bit sized chunks. Would recommend.
5
Anonymous Author
Great course on a good topic that has a lot of real life applications.
5
Anonymous Author
Lots of different ideas and applicable examples. Very broad
5
Anonymous Author
Excellent amount of knowledge for an unusual study area

Prerequisites

Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

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 .
Course Syllabus
INTRODUCTION AND OVERVIEW
  3:26Introduction to Behavioral Finance
The Emergence of Behavioral Finance
  3:40Some Basics on Traditional Economics
  10:38The Emergence of Behavioral Finance
  quizREVIEW QUESTIONS
How We Think
  4:52How We Think
  9:30Prospect Theory
  10:08Framing
  quizREVIEW QUESTIONS
Biases and Heuristics
  1:58What are Biases and Heuristics
  6:02Overconfidence
  5:54Confirmation Bias, Hindsight Bias, and Sunk Costs
  5:03Self-Attribution and Excessive Optimism
  6:18The Endowment Effect, Omission Bias, and Status Quo Bias
  4:16Familiarity Bias and In-Group Bias
  quizREVIEW QUESTIONS
  4:50Mental Accounting
  8:02Fairness
  4:34Anchoring and Adjustment
  3:12Disposition Effect
  9:38Representativeness and Availability Bias
  6:18Emotions, Mood, and Affect
  8:50Market Observations and Anomalies
  quizREVIEW QUESTIONS
Some Applications
  6:50Personal Financial Decisions - Investor Wants
  8:51Personal Financial Decisions - Behavioral Life-Cycle Planning
  3:58Personal Financial Decisions - Correcting Errors
  8:10Business Financial Decisions - Overview
  5:09Business Financial Decisions - Planning and Projects
  8:06Application: Retirement Planning and Savings
  5:00Application: Pricing
KEY TAKEAWAYS
  5:48Key Takeaways
  quizREVIEW QUESTIONS
CONTINUOUS PLAY
  2:45:21Behavioral Finance
SUPPORTING MATERIAL
  PDFSlides: Behavioral Finance: Introduction and Insights
  PDFBehavioral Finance: Introduction and Insights Glossary/Index
REVIEW AND TEST
 examFINAL EXAM