A new study, conducted by Florian Bollins and Thorsten Bashor of the Institute for Intelligence Sciences in Berlin, challenges the view that older people rely on simpler money management strategies.
The study showed that the decision-making strategies of older people are as complex as those adopted by young people, but they reflect different tendencies and motivations.
The research team relied on a mathematical model to analyze data from 122 participants from two age groups: young people (18-30 years) and older people (63-88 years).
The researchers found that older adults sometimes use a “maximization heuristic” to maximize gains (a decision-making strategy that focuses on maximizing possible gains or positive outcomes rather than avoiding risks or losses), while younger people tend to use a “minimalist heuristic” to minimize losses (avoiding losses rather than The pursuit of big gains).
The study also found that emotions play an important role in decision making. For example, an older person may focus on potential rewards when considering an investment for a grandchild, while a younger person is concerned with potential risks.
The results indicate that older people use complex strategies based on different motivations, which could help design better support systems for them and promote public policies focused on improving decision-making.
The study was published in the journal PLOS Computational Biology.
Source: Medical Express
#financial #decisions #change #age
