This paper provides an overview of the existing empirical research investigating the influence of emotions, specifically worry, on decision making and behaviors. Worry is associated with seemingly irrational behaviors and problem avoidance, while worry about one’s finances has been associated with unwarranted risk aversion and suboptimal financial decision making. This study uses a proprietary data set to explore the association between financial worry and socioeconomic status as well as to identify the financial stressors associated with financial worry.
Authors:
Danielle Winchester, PhD, is an associate professor in the department of accounting and finance at North Carolina A&T State University. She received a PhD in personal financial planning from Texas Tech University. Her research interests involve the impact of using financial advice in household decision making, household characteristics that impact human-capital investment, and gender differences in financial decision making.
Sandra Huston, PhD, is an associate professor in the department of personal financial planning at Texas Tech University. She received a PhD in consumer economics from the University of Missouri-Columbia. Her research interests involve analysis of human capital related to personal finance including financial literacy, the impact of using financial advice in household decision making, and the impact of financial sophistication on resource allocation within household portfolios.
