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Do poor people make poorer financial decisions?
By Singaporean Talks Money  •  December 2, 2018
A few days ago, this article came out which roughly summaries on why poor people tend to make not so smart choices due to tunnel vision or that you need to make short-term decisions rather than to plan for the long term.




I do know that poverty can strip a lot of opportunities and chances for an individual but I never knew that it can affect the cognitive aspect of the individual as mentioned in the article:
"Research from Princeton University has claimed that the dip in cognitive function in a person preoccupied with money problems is similar to a 13-point drop in IQ."The main thing is that because the individual is so preoccupied with their expenses and financial status that the brain is worn out.



One example mentioned in the video was that of Mdm Mary Yeo, who spend almost all her financial assistance buying $400 worth of packet
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By Singaporean Talks Money
I am currently a 23 year old university student in SIM. I hope to be able to grow my money and see the power of compound interest. I became interested in investing when I took a gap year and worked full-time. I realized that by just saving, it was very difficult to achieve my financial goals hence i read up on investing.
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One response to “Do poor people make poorer financial decisions?”

  1. Fred says:

    Stressed persons’ minds are usually diffused to think clearly. Of course different individuals’ capacity for stress differs. Nothing is worse than financial stress. Still, it does not mean that once a sudden windfall can eliminate all stresss overnight. The inability to manage these monies effectively can also break a person. Having a mentor or counsellor is important.

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