Relationship between Psychological Biases and...

Relationship between Psychological Biases and Individual Economic Behavior: An Empirical Study

Author Name : Rajni Rajan Chauhan

ABSTRACT

Behavioral finance adopts a descriptive approach to understand as to how people make decisions related to financial matters. Under the present multi-disciplinary study, the focus is to observe relationship between in psychological variables of financial wellbeing among individuals with financial literacy intervention.The study attempts to capture the relationship between individuals’ economic behavior and financial-psychological variables like financial awareness, financial perceptions and financial attitude among individuals. A sample of 308 respondents those who are working in Tri-City Chandigarh has been taken as the base of study. resultshows a significant relationship exists between individual economic behavior and financial perception. It is observed that there is a significant relationship between individuals’ economic behavior and financial attitude in both situations pre-and post-financial literacy intervention. And a significant relationship exists between individuals’ economic behavior and financial awareness among working people in Tri-city.