Jun 10, 2021
Today we speak to Professor Johanna Peetz about how the errors
people make about predicting their futures affect financial
planning and relationships. Professor Peetz is an Associate
Professor of Psychology at Carleton University and her three main
research interests are time perception, personal spending, and
close relationships. We kick the conversation off on the topic of
biased spending estimates, the idea that people are bad at
budgeting, and Professor Peetz gets into the main causes and
implications of this issue. Our guest gives pointers for how to
make less biased predictions for spending and makes a great point
about how people with more aggressive saving goals often don’t
spend less. We move onto the subject of long-term financial
planning and motivation, and Professor Peetz weighs in on a few
methods to get better at breaking down big goals into steps as a
way of keeping motivation up. Another big discussion from today is
how this idea of behaviour predictions fits into the context of
healthy relationships. We talk about the connection between
partner-satisfying decisions and happiness, and how partners should
view each other's ability to keep promises. So for all this and
more on how to get better at knowing your personality traits and
the effects this can have on finances and relationships, tune in
Key Points From This Episode:
- Introducing Professor Johanna Peetz and her research on
predictive errors. [0:00:48.2]
- If people are good at predicting how much money they're going
to spend in the future. [0:03:05.2]
- The causes and implications of these biased spending estimates.
- What people can do keep their spending in line with their
- The financial literacy gap between men and women.
- Increasing motivation to reach long-term financial goals based
on a future self. [0:17:05.7]
- Setting goals using intrinsic over extrinsic reasons.
- How financial planners can help their clients find and reach
their goals. [0:23:56.5]
- The relationship between pro-social behaviour and happiness.
- How good people are at predicting relationship-enhancing
- Dealing with money-related relationship conflict amongst being
bad at predicting behaviour and spending.
- How unpacking expenses can help people make less biased
spending predictions. [0:34:26.0]
- Different ways of responding to boredom in a relationship.
- Taking the perspective of the other person to improve the
forecast of relationship-enhancing behaviours.
- What Professor Peetz is working on now that makes her most
- How knowing your personality traits can help you make better
financial decisions. [0:48:20.0]
- Our guest’s definition of success.