This money keynote by Daniel Kahneman is a helpful aid in understanding the financial decisions we make and how to make better ones.
The Princeton professor begins by accrediting poor monetary decisions on being narrow-minded. As a result of this way of thinking, people only try to address the main problem, rather than seeing the bigger picture and all the events that may affect their decision. People also respond too heavily to small gains and losses. This reaction can affect smart decisions.
Kahneman's money keynote goes on to discuss that by becoming a more informed individual, people will be able to benefit immensely. They also need to use a broader view when dealing with monetary issues and to stay calm through gains and losses.