5 Ways People Are Dumb With Money

  • Publicado el Hace un mes

    Two CentsTwo Cents

    duración: 7:59

    Not only do we as humans make financial mistakes, our mistakes are predictable! Here's the story of how we learned that we can predict our mistakes and 5 of them you can avoid.
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    --
    Two Cents was created by Katie Graham, Andrew Matthews, Philip Olson CFP® and Julia Lorenz-Olson and is brought to you by PBS Digital Studios. We love dropping some knowledge on all things personal finance and helping you make better money decisions.
    Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson
    Directors: Katie Graham & Andrew Matthews
    Written by: Andrew Matthews & Julia Lorenz-Olson
    Produced by: Katie Graham & Amanda Fox
    Images by: Shutterstock
    Music by: APM
    --
    If you want to hear more examples of “dumb stuff people do,” check out Richard Thaler’s Misbehaving: The Making of Behavioral Economics.

    pbsds  pbs digital studios  two cents  richard thaler  behavioral economics  mental accounting  sunk cost  sunk cost fallacy  econs  transaction utility  nobel prize economics  misbehaving  two cents pbs  financial mistake  

Aprameya Bharadwaj
Aprameya Bharadwaj

But what if the value of the same article or item increases in the future given its antiquity and rarity? Especially given the fact that it is a FIRST EDITION CHARIZARD card?

Hace 14 horas
Type Masters
Type Masters

The only problem with the Pokemon card hypothesis is that you're not actually valuing the card as $3,000 The first scenario you find a card that's worth $3,000 but at the time of finding it you paid no money and back when you first got the pack it was probably only $1, not only that but you decide to keep the card instead of selling it for $3,000 The second scenario you find the card on sale for $3,000, you don't buy it because you're not a collector and spending $3,000 on something that's practically In conclusion a value of an item don't change depending on if you own it or now, if you own it then you have something that others value at a higher price than you do whilst if you find it for sale then you wouldn't pay more than what you personally value the object, even if the person selling it values it at a higher price

Hace un día
bland harp
bland harp

You two need to make a book seriously i would pay for it Btw you are couple goals

Hace un día
Jarrueche Tran
Jarrueche Tran

They banged after this video.

Hace un día
krattos92
krattos92

That girl is sooo fine

Hace un día
Joseph Duncan
Joseph Duncan

I hate to be "that guy" but the chick in this video is pretty hot.

Hace un día
J G
J G

Penny should of got a 30yr mortgage.

Hace un día
Jacob .Russell
Jacob .Russell

I disagree with the logic used behind the sunk-cost fallacy when relating it to food specifically. The reason Ill continue to eat something that doesnt taste great is because I know if I dont eat it ill have to pay for something else to eat, therefore costing me more money, but if I just gut it out and finish the food then I wont have to eat for a while.

Hace 2 días
Cam Mims
Cam Mims

This morning I Paid this Lil Girl $5 From the App Offer Up! for her Spongebob and Patrick Stuffed Animal Doll!. 8 Hrs later those Dolls are just sitting in my Closet Why? Cause $5 at the time wasnt that Pricey Plus I didnt need em But i Wanted em! Just gotta Find Squidward, Gary, Sandy, Mr Krabs, Pankton and ill be Golden ! lol

Hace 2 días
CaliCoin Digital
CaliCoin Digital

All I seen is that Bitcoin reference at 0:13 lol. I don't know about you, but I'm taking the risk buying Bitcoin. If it moves in my favor, then I'm paying off the debt, then I'm taking the vacation lol.

Hace 3 días
Rafael Oliveira
Rafael Oliveira

I love the book recommendation at the end! You all should do this more often ((:

Hace 4 días
Trinder3467
Trinder3467

Most people live their entire life Pennyless.

Hace 4 días
Cat Man
Cat Man

Doorbusters are here! Harm a stranger over a TV! Black Friday!

Hace 4 días
Annika Ehrig
Annika Ehrig

Am I the only one who liked the emoji movie😂

Hace 6 días
Tay J. Snyd
Tay J. Snyd

The worst is seeing people at a Starbucks drive thru haha

Hace 6 días
Francisco Lopez
Francisco Lopez

I'm reading that book right now. It's really good I can see why Thaler received a Nobel prize.

Hace 6 días
Razvan Popa
Razvan Popa

I pirate movies :)

Hace 7 días
robert greblheo
robert greblheo

What if you could use the card to make money? By playing the game 🎮

Hace 8 días
Angel
Angel

I think he should shave his mustache

Hace 8 días
Ryan
Ryan

Getting a 30year fixed rate mortgage is MUCH better than a 15 year fixed

Hace 8 días
yockota colorado
yockota colorado

i actually won 150$ in scratch card, i got a hooker that night and it was great

Hace 8 días
Fernando Matehuala
Fernando Matehuala

I feel like you spied on me and then were like “this bitch, yeah you don’t do that. Hold... no... sir... wha...” we’re making a video about this

Hace 9 días
Валентин Стойков
Валентин Стойков

0:14 - trolling hodl-ers, hehehe.

Hace 9 días
Deepak Kumar
Deepak Kumar

Thanks

Hace 9 días
Deepak Kumar
Deepak Kumar

This kind of Knowledge school doesn't give to students

Hace 9 días
Tai Tran
Tai Tran

I count and it shows only 4: 1) Endowment Effect 2) Sunk Cost Fallacy 3) Transaction Utility 4) Mental Accounting What's the 5th?

Hace 9 días
ɮօʊռċɛ օʄʄ
ɮօʊռċɛ օʄʄ

This entire channel is useless for people who're stuck on poverty

Hace 9 días
Jacob Paulson
Jacob Paulson

You should have an affiliate link to the book in the description! Easy money!

Hace 9 días
Mark Owen
Mark Owen

I like your channel. Nice folks giving useful info. Nice!

Hace 10 días
Daniel M
Daniel M

Please come up with better introductory and exit music. The childish nature of it makes me feel like I'm watching Sesame Street.

Hace 10 días
Abinash Pal
Abinash Pal

Nice video.....

Hace 10 días
Thomas the real
Thomas the real

about the Charazard. It gets personal value, because YOU got it and not just bought it.

Hace 11 días
Luis Perez
Luis Perez

Two Cents, is there a tool that people can use to make non-emotion based financial decisions? Or a resource that you recommend?

Hace 11 días
Ashley Marks
Ashley Marks

Its simple...is it a WANT or a NEED ? Spend money where you spend your time ! .Time is the real value !

Hace 11 días
Sage Duggal
Sage Duggal

Not a reasonable analysis of financial pitfalls. Please do more research next time, this is public broadcasting after all.

Hace 11 días
Pathway7
Pathway7

that moment when most people save money by pirating movies.

Hace 12 días
AdmiralBonetoPick
AdmiralBonetoPick

God, these people's patronising condescending tone is obnoxious.

Hace 12 días
Inbal Feuchtwanger
Inbal Feuchtwanger

With stock investing you see the endowment effect all the time. "It isnt a loss until you sell" is such a common phrase but wrong in so many ways.

Hace 12 días
Samsul Hoque
Samsul Hoque

Humans are so fucking stupid. I’m surprised we accomplished all that we did. 😂

Hace 12 días
Bruna A.
Bruna A.

I love your channel so so much! You guys make such a great job!!!

Hace 12 días
thestigDMC
thestigDMC

4:34 They are *NOT* the same question. The difference is that $5 is 30% of $15 but $5 is only 0.741839763% of $675. In theory one would probably have more to spend when making larger purchases and a "10 minute walk" might not be worth the 0.741839763% saving as opposed to a 30% saving.

Hace 14 días
vugh
vugh

Love the channel, but her vocal fry is so annoying.

Hace 14 días
TheyCalledMeT
TheyCalledMeT

great video only 1 caviat ... i think the pokemon card .. due to its rarity .. most likely will be worth more in the future

Hace 14 días
Bruno Brum
Bruno Brum

I watched this video 3 times to understand how dumb I'm dumb with it.

Hace 15 días
ScopedKilz
ScopedKilz

This makes so much sense. I was about to pay a friend $200 for a close parking spot to school. I have to walk a half mile in the cold every morning because they ran out of parking spots at school. To me the walk sucks, but if someone paid me $200 to walk that distance, I would be more than happy too. Thank you

Hace 15 días
Anthony Norman
Anthony Norman

Eating a bad meal because one purchases it is not a sunken cost fallacy. Food functions as nourishment and entertainment. The food will still nourish and throwing it away is actually wasteful.

Hace 15 días
Scrublord
Scrublord

It's obvious that Thaler didn't conduct his research in Asian countries.

Hace 16 días
Khaldoun Samman
Khaldoun Samman

Never use economists to explain human behaviour. This entire model is based on individuals making rational vs emotional decision. In the end, structural factors like regulation of markets (or the lack of) will impact all of us, rational or emotional. Penny will also be impacted by these changes depending on her class location. Economists are oblivious to social and political context and base their model on imaginary decontextualised models.

Hace 16 días
trashman
trashman

0:44 Uncle sam... I don't feel so good

Hace 16 días
Digital Porch
Digital Porch

Please help me with my very modest goal, I really need some help, all is very appreciated, also check out my other projects. Thanks for looking. https://www.gofundme.com/rd5w6rg

Hace 16 días
Interject Robot
Interject Robot

The tone of this video is extremely insulting to it's viewers.

Hace 17 días
yomamasopoor
yomamasopoor

amazing video! So happy to have found this channel :)

Hace 17 días
Jiankai Feng
Jiankai Feng

They payed $6 for the Emoji Movie?

Hace 17 días
captainrobots
captainrobots

If I had a sports car I would use the highest grade.

Hace 17 días
Thecontrodude proversial
Thecontrodude proversial

Is this a pbs show?

Hace 17 días
Nigel Wang
Nigel Wang

I love this channel! keep up the great content!

Hace 17 días
Oddix Games
Oddix Games

huh, now I see why you called her PENNY ))) that was really WISE lol ))

Hace 17 días
Alondra Gutierrez
Alondra Gutierrez

Man I’m so dumb

Hace 18 días
wcdeich4
wcdeich4

You have just proven to me that Richard Thaler was wrong about a lot of stuff. The "Endowment Fallacy' is not really a fallacy. Most people don 't know which old card are worth $3000 vs $3 - if I have just enough money to get by w/ a little to spare,spending $3000 for a collector card is out of the question. But putting a keepsake card in a frame is reasonable. After all, if you have enough money to live on, a higher number in your bank account is not a noble goal in and of itself. Also, the card may emotional value because you remember playing with your friends with it as a child . Also, you do not get as much on eBay as someone charges in a retail store for the same item. Generally speaking, you do not get as much money when you sell things as you spend when you buy them. And not just b/c used items have radically less value. People would be less likely to buy my used truck from me than from a used car salesman. Therefore, while "money is fungible" "money & goods are not fungible." If you don't believe me, try selling a diamond after you walk out of the jewellery store. Or just watch "Pawn Stars" where they tell customers "that's very high retail" & then offer half of what it is "worth."

Hace 18 días
NortheastGamer
NortheastGamer

Apparently the money mistake I made was leaving my Pokemon cards at my mom's house...

Hace 18 días
Janina Perez
Janina Perez

Ha, its at my local library!How come they don’t take each subject and invest time to explore subjects? Too fast but getting the point

Hace 18 días
JuliuszP
JuliuszP

Also the 50% off fallacy: “It’s half off and I was gonna buy just one, but I’ll get two since I planned to spend that money anyway.”

Hace 19 días
Prashanth .G.A.
Prashanth .G.A.

Can we get a video on prepaid mobile vs post paid mobile connection

Hace 19 días
Michael Gainey
Michael Gainey

4:07 The real problem is that you didn't recognize an arbitrage opportunity.

Hace 20 días
jacobhua
jacobhua

This guy looks like little finger from game of thrones! #GOTdobbleganger

Hace 20 días
obikanobi dombo
obikanobi dombo

in a strange way she is incredible sexy for me

Hace 20 días
Sethcha Koy
Sethcha Koy

“Like your channel” 😀

Hace 20 días
AkshAy ShArmA
AkshAy ShArmA

just as i was getting a $570 phone for $430 in sale then i thought do i really need aphone worth ove 400 dollers which is expensive for me... thank god i did not purchase that one.

Hace 20 días
AkshAy ShArmA
AkshAy ShArmA

as soon as i saw your frst vdo how cars keep us poor i knew u guys are doind good work...

Hace 20 días
xiiyaenxzi
xiiyaenxzi

The subtitles covered her boobs

Hace 20 días
John Papatheodorou
John Papatheodorou

I m in love with her!

Hace 20 días
Jay Booyah
Jay Booyah

This is a spot on video

Hace 20 días
TheWheelofLife100
TheWheelofLife100

Money has no value, other than the value we give it.

Hace 20 días
bob
bob

How this channel still haven't millions of subscribers?

Hace 20 días
Runar Andersen
Runar Andersen

I feel or think I am not the dumbest within money. I like saving money where I can. I still think this video made me think a bit.

Hace 20 días
Gabriel Moço
Gabriel Moço

This channel is so good! Congratulations guys

Hace 20 días
Benjamin Bowden
Benjamin Bowden

Can you please debunk the idea of "higher" and "lower" grades of gasoline? Octane content does not equate to gasoline quality. Use the octane level recommended in your owner's manual.

Hace 20 días
Rix Pix
Rix Pix

Thank you for the relevant work you put into these videos. This is the useful part YouTube I wish everyone was aware of.

Hace 21 un día
westabsupply ebay
westabsupply ebay

Mental accounting happens more often then we think, the feeling of finding forgotten 20's makes you feel indulgent. I usally will put half asides depending on the amount and buy a couple days to a weeks worth of groceries.

Hace 21 un día
James Mott
James Mott

This is a great channel. Very imformative. Now am I gonna listen to the advice??? I hope so Hahahaha

Hace 21 un día
*Matthew Noneya*
*Matthew Noneya*

But listing it in eBay, shipping, giving eBay it's cut, paying for shipping.

Hace 21 un día
*Matthew Noneya*
*Matthew Noneya*

I thought I wouldn't learn anything from this video, I was very wrong

Hace 21 un día
Maria Manias
Maria Manias

Glad to know I ain’t dumb 👍

Hace 21 un día
Michael Harto
Michael Harto

This theory doesn't describe asian economics behavior. We automatically do what this video suggested, it's in our blood.

Hace 21 un día
Yevgeniy Artemenko
Yevgeniy Artemenko

2:25 you do not account for a liquidity. Maybe to sell this card for 3k $ you need to spend or wait a lot of time, until some insane person decides to by a peace of paper for this much money (you can by an iPad pro 2018 for a half of the price btw, take a photo of the card and place it to a lock screen, it'll be quite a frame by the way...)

Hace 21 un día
Kei Kobayashi
Kei Kobayashi

Endowment effect Sunk Cost Fallacy Transaction Utility Mental Accounting whats the 5th?

Hace 21 un día
straitpepperdiet
straitpepperdiet

This girl isn't fungible. She's dreamy. I'm sorry, what was this video about? Oh yeah, stupid things people do. Yup. I was paying attention.

Hace 21 un día
Jason Groze
Jason Groze

Hookers and coke got me bankrupt yo

Hace 21 un día
byunTAE
byunTAE

This was a really awesome video! Thanks for the hard work, guys.

Hace 21 un día
Wong John
Wong John

1. Endowment Effect 2. Sunk Cost 3. Transaction Utility 4. Mental Accounting what's the fifth way :0)

Hace 21 un día
NYC Salsa Classes
NYC Salsa Classes

This stuff should be taught to libertarians

Hace 21 un día
ZamWired
ZamWired

The best two cents I ever heard this week indeed

Hace 21 un día
Dusty G.
Dusty G.

very nice

Hace 21 un día
youtube videos
youtube videos

Include affiliate link for Richard Thaler’s Misbehaving: The Making of Behavioral Economics and u will make money.

Hace 22 días
Neiliss1
Neiliss1

LoL love the emoji movie bashing. 😂 That movie was so bad I got rid of my Dropbox

Hace 22 días
Andi Chen
Andi Chen

I am a victim

Hace 22 días
Rodrigo Oria Pérez-Espinosa
Rodrigo Oria Pérez-Espinosa

Great work!

Hace 22 días
Res Art
Res Art

Bad decision like moustach without beard

Hace 22 días
BISHOP298
BISHOP298

Taught more here about life than school has school: “you’ll need to know this in real life” Me: “yea I need to know how to find area of a circle”

Hace 22 días
James Deininger
James Deininger

I don’t think the endowment effect is always necessarily applicable: 1) He might have an emotional investment to his old Pokémon card which was rekindled when he found it. 2) The cost of selling the card is a real thing. eBay charges listing and selling fees. Plus, there’s an opportunity cost assoc with the time he has to spend selling; eBay or otherwise.

Hace 22 días

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