True links: Precursory lessons from golf for effective financial behaviour

Abstract

This article presents the results from a preliminary study which finds there are three psychological errors common to golf and financial behaviour which are the cause of unfavourable outcomes, namely overoptimism, overconfidence and emotional judgements. To manage these errors, this study finds the same strategies used to improve golfing decisions could carry over into our understanding of effective financial behaviour. Further, linking the research of effective golf play with effective financial behaviour leverages upon a worldwide interest which we argue has the potential to provide a range of analogies and visual clues for financial education and financial planning.