Thursday, June 12, 2008

Young or Dumb?

Yesterday I came out and confessed my biggest financial blunder to date. While I’m in the process of fixing this situation (which I’ll write about later), I read something that made me think of this faux pas in a new light.

Summary from Your Money and Your Brain:

People who have damaged prefrontal cortexes (part of the brain that helps us think logically and reflectively; allows us to plan for future) tend to act in financially risky ways in order to gain a large short-term gain.

Now my Psychology background tells me that this area of brain doesn’t fully develop until mid-20’s.

This made me wonder: I made this decision in my young 20’s, it was certainly risky (all of my money was in it), and I was hoping for an immediate gain. Was I just immature or brain damaged?

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