What do Ostriches and Finance Have in Common?
May 7th, 2017
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In college it is hard to save money. With the costs of textbooks, late night pizza, and online shopping, I know my bank account is looking a little scary. Often times I find myself avoiding looking at my bank app because I’m afraid to see what my bank statement is, but on payday it is the first thing that I check. Why is that?
This tendency – to avoid checking financial standings when we know that they could be bad – is known as “the ostrich effect,” and is defined as the tendency for people to ignore their problems with the hopes that they will just disappear, similarly to how an ostrich hides their head in the sand when they are hiding from danger, and this tendency is not seen only in broke college students.
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