Irrational behavior of youth when taking financial decisions

Abstract

Purpose: The article contains research on internal factors of irrational behaviour initiated by the objective to reveal correlation between individual and personal, psychological peculiarities and irrational behavior in life situations. Design/Methodology/Approach: The article is based on a hypothesis that there is a correlation between personal peculiarities and an irrational choice when students of economic HEIs make decisions of economic nature. Such life-purpose orientations as “Locus of control Me” and “Locus of control Life” are connected with irrational economic behavior. Findings: The study allows enriching the subject field of behavioral economics from the point of view of the specificity of economic and psychological characteristics, attitudes towards an economic choice, and the identification of emotional and personal indicators of irrational behavior. It has been revealed that the psychological characteristics of a person (mental processes, orientation of an individual, life-purpose orientations) influence students' irrational economic behavior. Practical Implications: The results of the study can be used by economic institutions (HEIs) in the selection of students for educational programs. The developed diagnostic game technique, the styles of irrational behavior described by the authors can be used in the practice of the educational process of economic HEIs or in assessing the propensity to make irrational economic decisions in other areas of human activity Originality/Value: The main contribution of this study is the clarification of factors of finacial behavior of youth.