The Psychology of Financial Decisions in the Context of Gambling

Abstract

This article explores the psychological mechanisms that govern financial decision-making under risky conditions. The study starts from the hypothesis that people with low incomes and a low level of financial education tend to perceive gambling as a quick solution to obtain winnings and overcome material difficulties. The theoretical analysis is based on prospect theory, highlighting the role of cognitive distortions, such as the illusion of control and the gambler's error, in the subjective assessment of risk. The research methodology combines content analysis of recent specialized literature, an interview with an expert in psychotherapy and a sociological survey conducted on a sample of 90 students from the Republic of Moldova. The results indicate that financial decisions in the context of risk are frequently distorted by cognitive heuristics and emotional factors, highlighting an inverse correlation between the level of financial education and the predisposition to risky behaviors. CZU: [159.9:336]:794.9; JEL: D91, G41, D81, G11, D84