Applications of Behavioural Economics in Personal Finance ECON5153

  • Academic Session: 2024-25
  • School: Adam Smith Business School
  • Credits: 20
  • Level: Level 5 (SCQF level 11)
  • Typically Offered: Semester 2
  • Available to Visiting Students: No
  • Collaborative Online International Learning: No

Short Description

This course engages in presenting the most modern developments in behavioural economics, particularly those that bear relevance in personal financial planning. It addresses some of the fundamental questions in economics and finance and informs the future managers regarding the attributes of personal finance applications that can improve financial inclusion and social welfare.

Timetable

Lectures: 9 x 2-hour lectures on campus.

Presentation session: 1 x 3-hour session for presentations on campus.

There will be approximately 8 hours of asynchronous learning activities which will include directed reading.

Requirements of Entry

Students must be registered on one of the associated programmes listed in this course specification.

Excluded Courses

None

Co-requisites

None

Assessment

ILOs

Assessment

Weight

Length/Duration

4

Individual presentation

25%

5-10 minutes

Course Aims

This course will cover the behavioural aspects of financial decision making and personal financial planning and focuses on the behavioural approach to investment and personal financial planning, thus aiming to: ·

■ introduce the students to the theoretical, conceptual, and empirical underpinnings of anomalies and biases that investors face in financial markets. ·

■ help students explore some of the most common biases and mistakes that individuals make while dealing with money and investment. ·

■ inform future managers and designers of financial technological applications regarding the attributes of successful applications that can improve financial inclusion and social welfare.

Intended Learning Outcomes of Course

By the end of this course students will be able to:

1. Analyse decision-making, institutional design, technological applications, and policy interventions in personal and household financial planning using core concepts from behavioural economics.

2. Appraise the predictable ways in which individuals respond to certain situations or incentives and assess policies that draw on the lessons from behavioural economics.

3. Assess the link between knowledge and behaviour and critically evaluate factors that influence behavioural change.

4. Effectively communicate their ideas and present their work through a presentation.

Minimum Requirement for Award of Credits

Students must submit at least 75% by weight of the components of the course's summative assessment.