Financial Decisions
People
Course director
Assistant
Description
This course introduces students to financial decisions. Students will learn (1) how consumers (retail finance clients) make financial decisions, drawing on current economic, consumer behaviour and sociological research; and (2) how these decisions are shaped by cultural, social, and economic factors, as well as by the practices of financial institutions. The first part of the course covers general models of financial decision-making, including standard economic, behavioural economic, consumer behaviour and sociological models. The second part focuses on specific financial decision-making areas: investments (including alternative investments and crypto communities), credit decisions, mortgages, and payments. These sessions cover both individual motivations and the way they are shaped by financial devices (such as apps), the financial industry, political-regulatory institutions, cultural norms and social dynamics. The third part looks at selected critical issues of financial decision-making: financial literacy, information search and the role of influencers in shaping financial choices; financial inclusion and exclusion; and financial bubbles.
1. Introduction: From the homo economicus to the homo sociologicus and limited rationality models
2. Earmarking and mental accounts. Cultural and cognitive bias
3. Social class, gender and financial decisions
4. Financial devices: From financial models to gamified apps
5. Investment decisions: How people make them and how institutions shape them
6. Crypto communities
7. Alternative investments: From luxury watches to meme stocks
8. Credit decisions: How people make them and how institutions shape them
9. Mortgages: How people make them and how institutions shape them
10. Data and payments: Using and monetizing financial data
11. Financial literacy, information search and ignorance. Finfluencers
12. Democratization of finance, financial exclusion and inclusion
13. Financial bubbles
14. Conclusion
Objectives
The course
- Enables students to become familiar with the key factors shaping financial decision-making of different consumer (retail client) groups in different cultural contexts
- Broadens the horizon of students beyond standard economic models to appreciate the influence of cultural values, beliefs, social dynamics, institutional norms, practices and market devices on financial decisions
- Gives a theoretical and practical toolbox to students to analyse financial-decisions and financial preferences of various client groups
- Familiarizes students with the institutional, cultural and social environment that shapes financial decisions
- Sensitises students to the ethical, inclusionary/exclusionary effects of financial regulation and institutional practices
Sustainable development goals
- No poverty
- Reduced inequalities
Teaching mode
In presence
Learning methods
The class consists of lectures and groups discussions. Students will be required to carry out two short research projects focusing on financial decision-making. The projects will be presented in class.
Examination information
- Oral group presentations (40%)
- Written closed-book exam (60%)
Education
- Master in European Studies in Investor Relations and Financial Communication, Lecture, Suggested Elective Course, Elective, 2nd year
- Master of Science in Communication and Economics in Marketing and Transformative Economy, Lecture, Thematic Area: Stategy and Entrepreneurship, Elective, 2nd year
- Master of Science in Communication in Media Management, Lecture, Thematic Area: Strategy and Entrepreneurship, Elective, 2nd year
