How The Framing Effect Shapes Your Financial Decisions

Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend · Oct 7, 2026 · 8m · transcript

We examine the framing effect, a cognitive bias where people react differently to a particular choice depending on how it is presented. Using the classic Asian disease problem and modern portfolio examples, Lucas and Luna explore how losing versus gaining frames alter risk tolerance. We look at why your retirement provider’s language might be steering you toward conservative funds, and what you can do to see past the wording to the actual numbers.

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