Analysis of the financial behavior of the young citizen, reason and emotion in decisions

what we think and what we effectively do

Abstract

Decision making is a process intrinsic to human life, which leads to the choice of one of the available alternatives to solve a certain problem. Modern financial theory is based on the unlimited rationality of agents when making decisions, searching for the best choice to maximize utility. Under the perspective of behavioral finance theory, the economic agent is now considered as a being of limited rationality, in which besides this, there are other variables that influence it in its decision. Thus, the general objective of this study is to analyze the presence of rationality and emotion in the decision-making process. With the specific objective of analyzing the presence of rationality and emotion in consumption, investment, personal and family decisions. The research is quantitative, by applying a questionnaire with 75 statements, and qualitative, by conducting interviews with 15 subjective questions. 263 valid questionnaires and 28 interviews were obtained. The results found showed that consumption decisions are influenced by friends and information from the internet, which coincides with the profile of young people, university students and singles. Regarding the discussion of the budget, it is something restricted to parents and young people do not participate. It can be inferred that discussing money transparently is still very difficult.

Keywords: Behavioral Finance. Decision. Reason. Emotion.