Shlomo Benartzi begins his talk by outlining three things that we as a people are not doing well. What are these three things? Do you agree or disagree with his evaluation of these things?

What is behavioral finance? What does behavioral finance have to do with personal and family finance?

What are some of the behavioral obstacles that influence personal finance as described by Benartzi?

What is Benartzi’s solution to all of these behavioral challenges that effect personal finance? How does improved personal finance benefit the economy in general?

Based on what Davidson says, how would you describe the term ’fiscal cliff’?

Davidson describes two fundamentally different economic philosophies that both impact the debt crisis that the US faces. What are these philosophies? Do you agree with one more than the other?

Davidson offers several solutions to the major issues, stating that fiscally we are actually not a nation that is divided on the major issues. What are some of the fiscal solutions that he mentions tweaking?

While Davidson outlines several issues that the parties are actually not terribly divided on, he also outlines two issues that are hyper-partisan. What are these fiscal issues and why do you think that the parties are so divided? Do you lean towards the Democrat or Republican view on these issues?

Towards the end of his talk, Davidson discusses a fear. What is this fear? How does this fear, as well as his entire discussion of the fiscal cliff, relate back to economic factors that influence our personal finances?

Question

wolf.susan · Accepted Answer

According to Shlomo Benartzi's talk, the 3 things we humans do badly are risk taking, insurance and money management.
The biblical king who is most well-known for his wisdom is Solomon. When Solomon offered a sacrifice to God, God later asked him in a dream what ge wanted from him. Solomon prayed for wisdom in order to lead and govern his people more effectively.
The process of setting up a budget, saving money, making investments, and spending are all examples of money management. To help you overcome the barriers to wealth, money management gives you a 360-degree view of your financial situation while putting important financial disciplines into practice. You have much more control over your financial future when you have a clear purpose for your money and sound money management principles behind it. Budgeting, investing, spending, and other types of capital usage oversight are all included in the definition of money management.

Behavioral Finance is the study of the effects of psychology on investors and financial markets. It focuses on explaining why investors often appear to lack self-control, act against their own best interest, and make decisions based on personal biases instead of facts.
Behavioral finance is related to personal and family finances because these are factors that directly influence an individual's economic decisions. People can make irrational choices too.

One obstacle someone could face would be foreclosure. Foreclosure could occur by an individual not paying their mortgage on their home, and a mortgage is a monthly house payment. For example someone not having access to 401K, or choosing not to save that appropriate amount of money.

Benartzi's solution to all of the behavioral challenges affecting personal finance is "Save More Tomorrow". Benartzi stated that solution involves having a savings and self-control. Through "Save More Tomorrow" employees will be encouraged to save more for the future. When you save money, you save to invest in something. This investment through your personal finances can help the economy, because when you invest it you will generate taxes that will drive the economy.

The term "Fiscal Cliff" is a situation in which particular set of financial factors causes or threatens sudden severe economic decline.

Republicans believe, according to Davidson, that the economy works best when the state keeps its hands off it. Republicans view a free market economy without government intervention as essentially a perfect machine that can coordinate the interests of vastly different groups of people.
The Democrats, on the other hand, while seeing Capitalism as the most efficient economic system, believe that the capitalist economy needs to be regulated by the state, because otherwise, a free market generates undesirable effects like externalities and economic inequality.
I agree more with the Republic side of things, life can't always come with an aim of everything being "equal" and "fair"

Some of the fiscal solutions that Davidson mentions tweaking in a bid to cut government spending multiple subtle ways are as follows:
1. Raise social security retirement age
2. Reduce medicare for wealthy seniors
3. Raise medical healthcare contributions question.
The 2 fiscal issues that are hyper-partisan are as follows: Army protection sounding and problems of taxes.
-The events are so divided chiefly due to the facts they have git severe opposites points of view on several problems.
-At the issues, I lean towards the Democratic view.
Democracy is a form of government wherein the humans have the authority to planned and determine regulation, or to choose governing officials to achieve this. The U.S. is an example of Democracy, they have got a consultant democracy wherein the people choose the executive and Legislative officials for the debate over guidelines that hobby the humans.
Democracy is a gadget of government in which legal guidelines, rules, leadership, and principles undertakings of a kingdom or different polity are immediately or in a roundabout way decided via the human beings, a collection historically constituted through only a minority of the population.

Davidson fears that the longer the solution is delayed, the more the world will look at the United States as a place that can't resolve its own fights. The higher the interest rates become, the faster the horrible calamity will come.

Hope I helped!

powlowski.llewellyn · Answer

im not for sure what that person said ^

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