Depression and finance – The daily blog of behavioral and cognitive economics

Is it more difficult for people with depression to manage their money?

Recent observations and studies have pointed, in recent years, to altered reward processing in people living with depression, considering that hopelessness is part of the clinical picture of the disease. Depressed mood is often also associated with a lack of positive expectations, which may affect people’s motivation to invest in the future. That is, empirical evidence suggests that people with depression often do not accept future rewards compared to people without mental health difficulties. Of these future rewards, most are financial. And one way to measure and organize personal finances is the so-called “financial planning horizon.” ….[READ]