Does Time Really Equal Money?
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Learn how the human mind perceives both time and money and why we have so much difficulty saving for the future.

It’s really easy for people to save money for the future:
“Temporal discounting” means:
People are generally averse to loss, a concept known as “loss aversion”:
Saving early for retirement is:

Right!

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Sensible Savings Challenge

Saving too little every month can be detrimental to your future but you also don’t want to save too much and put yourself under financial strain in the present. Working out a monthly budget can help you find an amount that is practical and realistic. To do this, add up every non-negotiable expense, such as housing costs and groceries, and variable expenses, such as entertainment and clothing. When you have reached a total, deduct it from your paycheck, take a look at how much you are left with and what portion of that amount you can afford to set aside each month. Once you have a set sum, stick to it and increase that amount with every increase in your paycheck!

Session Q & A

  • People tend to get into panic mode when they realize they haven’t saved as much money as they should have over the years. This leads them to start taking risks with their savings at a time when they shouldn’t be taking any risks at all!

  • Temporal discounting is when things in the future seem less important than things in the present. It’s one of the factors in human decision-making that make it hard to save for retirement.

  • A concept called “loss aversion,” which simply means that losing $10 hurts more than gaining $10 feels good.

  • If you decide how much of your paycheck you realistically can afford to save and set that amount aside each month, you’ll soon start accumulating a nest egg that will help you be better prepared in future.

Jason L. Harman, PhD

Jason L. Harman is an Assistant Professor of Industrial and Organizational Psychology at Louisianan State University. He researches how the human mind makes decisions and how understanding memory, attention, and learning can help us make better decisions. Particularly, he studies decision making related to finance, health and the environment. Jason received his Ph.D. in Cognitive Psychology from Ohio University and spent three years as a post doctoral fellow in Decision Sciences at Carnegie Mellon University. He has won awards for both his teaching and research and his work has been published in leading journals of Psychology, Organizational Behavior and Computer Science.

Jason L. Harman is an Assistant Professor of Industrial and Organizational Psychology at Louisianan State University. He researches how the human mind makes decisions and how understanding memory, attention, and learning can help us make better decisions. Particularly, he studies decision making related to finance, health and the environment. Jason received his Ph.D. in Cognitive Psychology from Ohio University and spent three years as a post doctoral fellow in Decision Sciences at Carnegie Mellon University. He has won awards for both his teaching and research and his work has been published in leading journals of Psychology, Organizational Behavior and Computer Science.

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