Status quo bias is the tendency for people to prefer to stick with the current state of things rather than change their behaviour. This can lead us to do nothing in situations where we should be doing something different.
Most ReadPsychology of Investing
Make better financial decisions by learning about behavioural insights.
Most ReadBehavioural insights: How to counteract your biases to make better decisions
Learn tactics you can use to improve your financial decisions.
Loss aversion: Why people are so afraid of losing money
Find out more about how a fear of losing could impact your decisions.
How fraudsters take advantage of behavioural biases to promote their scams
Fraudsters take advantage of behavioural biases to push their scams. Learn more about key biases which fraudsters exploit, and how you can protect yourself.
Confirmation bias: A fundamental risk to your investing decisions
Our desire to be right, gives us a higher sense of self-esteem — even though we may be wrong.
Anchoring effect: How meaningless information can affect your financial decisions
The first piece of information you see is known as the anchor. Find out why.
Herd behaviour: When following the crowd isn’t in your best interest
Learn more about the strong desire you may have to follow what others do.
How overconfidence bias may affect your financial decisions
People tend to overestimate their abilities, intellect, character, and even luck.
Living for today at the expense of tomorrow
People prefer immediate rewards over future rewards. This is known as present bias. Learn more about the many ways present bias can affect your financial decisions.
Mental accounting: How thinking about money affects the way you spend
People tend to treat money differently based on how they obtain it or what they intend to spend it on. Find out more.
Familiarity bias: The limits of going with what you know
People simplify investing decisions by gravitating towards what’s familiar.