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

Behavioral finance is the branch of economics that studies how people make financial decisions. These finances are related to personal and family finances, because these are factors that directly influence an individual's economic decisions.

Explanation:

Behavioral finance is an area of studies in Economics that aims to understand the decisions that people make in the financial sphere, from the very structure of human behavior, their motivations and, in general, from Psychology. These decisions are directly linked to personal and family factors and therefore we can say that they are related to personal and family finances.

At different times, these two sciences (economics and psychology) "flirted", without ever fixing a point truly common to each other. In particular, because for a long time Economics saw the components it studied following the ideal of Homo Economicus, that is, that of a human being who produces and consumes following only his own rationality.

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