how to buy happiness and other brain tricks to smarter spending by melissa leong

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By Melissa Leong Brains on Money! 1 This is your brain on money. Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014 Presented live at the Ted Rogers School of Management 1 of 26 money5050.com

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Just because you are financially literate does not mean you make the right decisions. The problem may not be what you know. The problem may actually be your brain. Melissa talks about some of the most exciting scientific findings that combine neuroscience, behavioural studies and economics and how we can use the research to behave better with our money. Melissa Leong is a personal finance writer at the Financial Post (@liselong). Here are the slides from her presentation at Insider Advice for Today's Topsy-Turvy Times, which took place at the Ted Rogers School of Management on February 6, 2014. Details at http://bit.ly/money5050b

TRANSCRIPT

Page 1: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

1

This is your brain on money.

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 1 of 26 money5050.com

Page 2: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

2

You impulse buy.

The problem:

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 2 of 26 money5050.com

Page 3: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

3

The problem:

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 3 of 26 money5050.com

Page 4: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

4

Outsmart yourself!

The fix:

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 4 of 26 money5050.com

Page 5: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

5

Recognize when your will power is strong.

The fix:Outsmart yourself!

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 5 of 26 money5050.com

Page 6: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

6

Recognize when your will power is strong.

The fix:Outsmart yourself!

Institute a waiting period for your purchases.

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 6 of 26 money5050.com

Page 7: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

7

Recognize when your will power is strong.

The fix:Outsmart yourself!

Institute a waiting period for your purchases.

Pay yourself first.

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 7 of 26 money5050.com

Page 8: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

8

You feel no pain when you spend.

The problem:

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 8 of 26 money5050.com

Page 9: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

9

Bring the pain!The fix:

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 9 of 26 money5050.com

Page 10: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

10

Use cash and limit the use of your credit card.

The fix:Outsmart yourself!

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 10 of 26 money5050.com

Page 11: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

11

The fix: Bring the pain!

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 11 of 26 money5050.com

Page 12: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

12

The fix: Bring the pain!

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 12 of 26 money5050.com

Page 13: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

13

The fix: Bring the pain!

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 13 of 26 money5050.com

Page 14: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

14

Use cash and limit the use of your credit card.

The fix:Outsmart yourself!

Reflect and feel the burn.

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 14 of 26 money5050.com

Page 15: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

15

Use cash and limit the use of your credit card.

The fix:Outsmart yourself!

Reflect and feel the burn.

Look at alternatives.

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 15 of 26 money5050.com

Page 16: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

16

The fix: Bring the pain!

Study: People were 20% less willing to buy a $15 DVD if the option to "not buy" was described as "keeping money for other purchases."

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 16 of 26 money5050.com

Page 17: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

17

The fix: Bring the pain!

Study: The choice to buy a 16GB iPod Touch over a 32GB iPod Touch doubled when accompanied by the phrase: "Leaving you $100 in cash."

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 17 of 26 money5050.com

Page 18: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

18

You get distracted by day-to-day living and forget long-term goals.

The problem:

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 18 of 26 money5050.com

Page 19: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

19

Get peer support.

The fix:

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 19 of 26 money5050.com

Page 20: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

20

You’re trying to buy happiness.

The problem:

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 20 of 26 money5050.com

Page 21: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

21

The problem: You’re trying to buy happiness.

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 21 of 26 money5050.com

Page 22: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

22

Spend not on things.

The fix:

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 22 of 26 money5050.com

Page 23: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

23

Spend on experiences.

The fix:Spend not on things.

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 23 of 26 money5050.com

Page 24: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

24

Spend on experiences.

The fix:Spend not on things.

Make things a special treat.

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 24 of 26 money5050.com

Page 25: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

25

Spend on experiences.

The fix:Spend not on things.

Make things a special treat.

Spend on others.

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 25 of 26 money5050.com

Page 26: How to Buy Happiness and Other Brain Tricks to Smarter Spending by Melissa Leong

ByMelissa Leong

Brains on

Money!

26

Thank you.financialpost.com@lisleong

Money 50/50: Insider Advice for Today's Topsy-Turvy Times Feb 6, 2014

Presented live at the Ted Rogers School of Management 26 of 26 money5050.com