Are Millennials Overly Confident About Their Finances?

TYT Network

There are differing opinions about whether overconfidence is good for humanity.

Some say that believing that you’re better than you really are is a self-fulfilling prophecy that’s good for ambition and swift decision-making.

Overconfidence can lead to boosts in social status, and overconfident populations have been shown to be more evolutionarily stable. Some argue that overconfidence leads to hubris, self-deception, and blind spots in decision making.

In behavioral finance, overconfidence for traders can lead to risky stock picks and overtrading. But what about personal finance?