E26: Money Behavior and Personal Finance | Alexander Smith—Social Science and Policy Studies | Aedan Bingham—Robotics Engineering, Economics

In this episode of The WPI Podcast, we explore why sticking with your money goals is harder than it seems. Alexander Smith, associate professor in the Department of Social Science and Policy Studies, explains how personal finance is deeply influenced by behavioral economics, or the psychology of decision-making. He describes how emotions and a focus on short-term goals can make it hard to follow a long-term financial plan, and how commitment devices and tapping into motivation can help. Smith outlines six essential rules for building wealth and shares why financial self-awareness is just as important as financial literacy. Aedan Bingham, a student majoring in robotics engineering and economics, also shares his findings from a research project that surveyed college students about what they know and want to know about personal finance.  The pair discusses how this research is helping to empower students with knowledge about topics including saving, investing, taxes, and credit.   Related links: Alexander Smith’s personal finance website, Follow The 6 “What WPI Students Know about Personal Finance,” by Aedan Bingham Smith discusses the impact of buy-now-pay-later financing on financial planning in the New York Times