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How the Framing Effect Shapes Your Financial Decisions
Discover how subtle shifts in perspective can lead you to take unnecessary risks — and how you can use this knowledge to make wiser choices with your money.
Picture This…
You’re walking into a store, and you spot two cans of bug spray on the shelf. The first can says, “kills 99% of bugs,” while the second reads, “leaves 1% of bugs alive.” Which one are you more likely to grab?
Odds are, you’d instinctively reach for the first option. Why? It promises the outcome you want, which is getting rid of those pesky bugs. This subtle shift in how the message is framed leads most people to make a clear choice, one that feels, somehow, just better. This is what’s known as the framing effect — how information is presented can often sway our decisions more than the actual facts.
In this blog, I’ll walk you through how the framing effect impacts our finances. From my own journey to stories we see around us every day, you’ll learn how to recognize framing and use it to your advantage, making better financial choices starting today.
