AOM1 - Behaviors and Money

When thinking about behavior and money, how they intertwine, and how they feed into one another, the first thing that comes to my mind in terms of our economy is how money affects one’s behavior. When a person gains money, there are good and bad behaviors that can come from that. A positive result could be money encouraging someone to expand their selling and buying, invest more, create more bonds and reach for financial stability. However gaining large sums of money could also bring oblivion and greed out of a person. They could spend their money recklessly and/or make poor investment choices because they are thinking less about the potential repercussions and the unpredictability of the economy (right now for example). 

When it comes to banks, individuals, and lending, behavior also plays a role in both good and bad ways. When looking at the positives, people often take out loans because they do not have the money at the time but are anticipating to make more money to pay them back. So when a person who has taken out a loan receives money, it could alter their behavior into trying to become more financially stable, and they could pay back their lenders. On the flip side, when people have lots of money and that greedy behavior starts to immerse itself, there is potential for taking out more loans to buy more things a person thinks they can afford, and they end up digging themselves further into a hole they could have gotten out of. 

While I do not think that attitude and behavior are always intertwined, it definitely plays a large role in defining a contract and relationship between the borrower and the lender. The trust, the amount of money borrowed, the time for loans to be paid off, all of the agreements that need to be made in a contract are made with specific mindsets, some of which are based on the history of behaviors as well as anticipation of future interactions.