Dimensions of Investment Behavior: A Case of Kids Higher Education

Abstract

Making excellent investments decisions is difficult for most of the peoples, we all have hopes and fears regarding our investments, yet unknown to us, these same hopes and fears can damage our investment performance. Neuroscience research demonstrates how these emotions originate in the brain's center of emotional processing, the limbic system, in various financial situations. We can learn to identify these emotional disturbances in our financial reasoning. Distorted reasoning is often characterized by intense feeling. However, unless we make a conscious effort to become aware of our feelings, we can easily succumb to their destructive tendencies, based on this understanding researchers in this study is focusing on some of few core issues, which are main constraints at the time of basic financial planning of an individual. These issues are why do some people take a lot of risk in financial and other people don’t? Why do some people save very little for retirement and some save a lot more? Why do some people become overconfident when they invest? In this study, education is treated as a form of investment and the focus of the study is to understand individual’s investment behavior at the time of investing in child higher education.