Applied Behavioral Finance

Course: Applied Behavioral Finance

financial programs designed for immediate results.

Audience: Business, financial planning, and financial therapy professionals
Method: Online
Length: 8 weeks

This course is an applied behavioral finance course examining the intersection of behavioral finance, financial psychology, and financial planning theory, practice, and research. It reviews the research on behavioral finance and investor psychology, exploring the effects of human emotions and cognitive errors on financial decisions. This course focuses on the application of behavioral finance theory and research to the practice of business, financial planning, and financial therapy to help professionals improve the financial health of their clients.

    Course Learning Objectives

    1. To provide an environment conducive to the study of behavioral finance using written and oral presentations and applied financial psychology theory and techniques.
    2. To strengthen students’ ability to understand financial psychology and its implications with regard to financial health of clients and clients’ ability to reach their financial goals.
    3. To apply theory and technique to gain a deeper understanding of the student’s own personal financial psychology.
    4. Identify cognitive and emotional biases that impact investor behaviors.
    5. Describe methods for helping clients identify, challenge, and change cognitive and emotional biases.
    6. Learn to apply research findings in behavioral finance to working with clients.

    Outline and Materials

    • Week 1: Intro to Applied Behavioral Finance
    • Week 2: Cognitive dissonance, Conservatism, Confirmation, & Representativeness 
    • Week 3: Illusion of control, Hindsight, Mental accounting, and Anchoring & Adjustment 
    • Week 4: Framing, Availability, Self-attribution, & Outcome
    • Week 5: Recency, Loss Aversion, Overconfidence, & Self-Control
    • Week 6: Status Quo, Endowment, Regret Aversion & Affinity
    • Week 7: Financial Therapy for Cognitive Biases
    • Week 8: Applied Behavioral Finance Project

    Required Materials

    • Pompian, M. (2012). Behavioral finance and wealth management: How to build optimal portfolios that account for investor biases, 2nd edition. Wiley Finance.
    • Klontz, B., Kahler, R., Klontz, T. (2016). Facilitating financial health: Tools for planners, coaches, and therapists, 2nd edition. Cincinnati, OH: The National Underwriter Company.

    This is an online course through Creighton University worth 3 credits. It is one of five courses in the Certificate in Financial Psychology & Behavioral Finance