Aug 31, 2015

Audio Resource: What Role Does Fear Play In Investing?

From Marketplace (5 minute interview):

Here are the questions covered in this interview with a psychology professor:

  • What happens in brain when fear hits (e.g., when stock market drops 1,000 points as it did last week)?
  • How do different people process the fear stimuli?
  • Is our fear response innate or can we teach people to develop a higher tolerance for pain?
  • How does fear impact our decision-making?

You might ask students where they fit on the “fight or flight response” continuum and how they might react to a 1,000 drop in the stock market.

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

author image More by Tim right solid arrow
Mail Icon

Subscribe to the blog

Join the more than 12,000 teachers who get the NGPF daily blog delivered to their inbox:

SIGN UP