Finance is intertwined with psychology.

Understanding behavioral finance can provide insights into how individuals make financial decisions. This field combines psychology with economics to study how emotions and cognitive biases influence financial choices. By recognizing these factors, financial professionals can better assist clients in making rational decisions and avoiding common pitfalls. Behavioral finance helps explain phenomena such as market bubbles, herd behavior, and irrational exuberance. By acknowledging the psychological aspects of finance, individuals can become more aware of their biases and make more informed financial decisions.