Financial decisions are influenced by past experiences from "summary" of Your Money and Your Brain by Jason Zweig
Our brains are wired to learn from experience, and this includes financial experiences. When we make decisions about money, our brains automatically reference past experiences to guide our choices. These experiences can range from childhood memories of saving money in a piggy bank to the more recent experiences of investing in the stock market. Regardless of the specific experience, our brains use this information as a reference point for making financial decisions in the present. One of the key ways in which past experiences influence our financial decisions is through emotional responses. For example, if we had a positive experience with a particular investment in the past, our brains may associate that investment with feelings of pleasure and success. This positive emotional response can then influence our decision-making process, leading us to favor simila...
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