Financial education won't solve Pinoys' money problems: behavioral economist


Posted at Feb 11 2021 03:14 PM

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MANILA - Financial literacy will not improve the way Filipinos handle money, as meta-analysis has shown that financial education only has 0.1 percent effect on people's behavior with managing their finances, a behavioral economist said on Thursday.

Economist Rose Fres Fausto explained that using behavioral economics to fully understand one's rational and emotional tendencies will lead to better money-making decisions.

Fausto also cited 16 money principles for people to reflect on, which include the sunk cost fallacy, loss aversion and default bias, among others.