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The Impact of Emotional Factors on Household Financial Decision-Making: An Exploratory study

 

Authors

 Dr. Divya Sharma                                                                                 Mr. Adarsh Kumar

Asst. Professor                                                                                       Asst. Professor

Dept. Of Management                                                                          Dept. Of Management

ITM, Gwalior                                                                                         ITM, Gwalior

Abstract

This exploratory study investigates the role of emotions in the personal finance decisions of households. Personal finance management is often perceived as a rational process; however, emotional factors can significantly influence financial behaviours. The study explores how emotions such as fear, anxiety, happiness, and excitement shape the financial choices of households, affecting budgeting, saving, investing, and debt management. Through qualitative interviews and surveys, the research identifies emotional triggers that impact decision-making and financial well-being. The findings highlight the complex interplay between emotion and financial behavior, emphasizing the need for more emotion-aware financial education and policymaking. The study contributes to a deeper understanding of how emotions influence household financial practices, offering insights into the importance of addressing emotional factors in personal finance strategies.

Keywords: Emotions Factors, Personal Finance, Household Financial Decisions, Financial Decision Making, Emotional Triggers, Budgeting, Saving, Investing, Financial Education, Financial Well-being.

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