Ep211: Combatting Poverty with Neuroscience, not Financial Literacy, with Emily Heath
09/08/21 • 40 min
If we see poverty as the result of financial illiteracy, irresponsibility or a lack of self-control, then the blame falls on the person living in poverty, and the answer is to find a job, spend less, and get financial training.
Financial literacy education is definitely important, and these programs have their benefits. But knowledge alone does not develop capability and behaviour change, any more than knowing you should exercise leads to going to the gym.
So why do the majority of financial interventions fail? To understand that, we’re Changing Lenses to see through the eyes of people experiencing financial vulnerability. Dr. Emily Heath, a senior researcher and behavioural neuroscientist, explains the cognitive biases and psychology behind financial decision-making. As we learn about the barriers to healthy financial behaviour, we also learn how racism, discrimination and other forms of oppression exacerbate the problem.
In this episode, you’ll learn:
- The cognitive biases that derail our best intentions for saving money
- Why low-income kids do worse in the “marshmallow test”
- How poverty is a tax on decision-making
- The effect of traumatic events like racism and domestic violence on financial capability
- What neuroscience tells us will actually help people facing financial vulnerability
[Please pardon the poor audio quality due to internet recording.]
Full transcript available here.
Contact Rosie and find JEDI resources at: https://www.changinglenses.ca/
ABOUT DR. EMILY HEATH
Dr. Emily Heath is a senior researcher, consultant and behaviour change specialist with a PhD in behavioural neuroscience from the University of Sydney’s Brain and Mind Centre. Emily has been the architect of award-winning financial capability programs, which she has developed for both youth and adults. She is the author of the international report, “How do we really build financial capability? 10 Principles for financial interventions”.
Emily is currently a Senior Manager, Climate Change and Sustainability Services with EY Australia, and sits on the Australian Securities and Investment Commission (ASIC) Schools and Money Working Group.
You can find Emily on LinkedIn.
References and resources in this episode:
Article on Professor Sendhil Mullainathan’s research: https://www.harvardmagazine.com/2015/05/the-science-of-scarcity
https://www.theatlantic.com/family/archive/2018/06/marshmallow-test/561779/
https://www.financialcapability.gov.au/files/how-to-really-build-financial-capability.pdf
If we see poverty as the result of financial illiteracy, irresponsibility or a lack of self-control, then the blame falls on the person living in poverty, and the answer is to find a job, spend less, and get financial training.
Financial literacy education is definitely important, and these programs have their benefits. But knowledge alone does not develop capability and behaviour change, any more than knowing you should exercise leads to going to the gym.
So why do the majority of financial interventions fail? To understand that, we’re Changing Lenses to see through the eyes of people experiencing financial vulnerability. Dr. Emily Heath, a senior researcher and behavioural neuroscientist, explains the cognitive biases and psychology behind financial decision-making. As we learn about the barriers to healthy financial behaviour, we also learn how racism, discrimination and other forms of oppression exacerbate the problem.
In this episode, you’ll learn:
- The cognitive biases that derail our best intentions for saving money
- Why low-income kids do worse in the “marshmallow test”
- How poverty is a tax on decision-making
- The effect of traumatic events like racism and domestic violence on financial capability
- What neuroscience tells us will actually help people facing financial vulnerability
[Please pardon the poor audio quality due to internet recording.]
Full transcript available here.
Contact Rosie and find JEDI resources at: https://www.changinglenses.ca/
ABOUT DR. EMILY HEATH
Dr. Emily Heath is a senior researcher, consultant and behaviour change specialist with a PhD in behavioural neuroscience from the University of Sydney’s Brain and Mind Centre. Emily has been the architect of award-winning financial capability programs, which she has developed for both youth and adults. She is the author of the international report, “How do we really build financial capability? 10 Principles for financial interventions”.
Emily is currently a Senior Manager, Climate Change and Sustainability Services with EY Australia, and sits on the Australian Securities and Investment Commission (ASIC) Schools and Money Working Group.
You can find Emily on LinkedIn.
References and resources in this episode:
Article on Professor Sendhil Mullainathan’s research: https://www.harvardmagazine.com/2015/05/the-science-of-scarcity
https://www.theatlantic.com/family/archive/2018/06/marshmallow-test/561779/
https://www.financialcapability.gov.au/files/how-to-really-build-financial-capability.pdf
Previous Episode
Ep210: All the Single Ladies (are invisible minorities), with Jaime Ho
We’re single, but we’re not alone. The population of singles are growing in North America – but we’re still a minority group. And like any minority group, we face discrimination and marginalization purely because we don’t have the power of the majority – even more so for single women.
If you’re wondering how that could be, you’re probably married. 😊 And your single friends and family need you to hear this episode.
Because singlehood isn’t a waiting room for marriage. It’s become an increasingly long-term lifestyle for people in their 30’s, 40’s and older. But our workplaces, businesses, even taxes, still centre the nuclear family as the “norm”.
So in this episode, we’re changing our lens to see through the eyes of two long-term single women – me, and my best friend Jaime. We go outside our comfort zones to (hopefully) de-stigmatize an issue that can still cause women to question their self-worth.
In this episode, you’ll learn about:
- How capitalist economies disadvantage single people
- How parents and couples get prioritized at work
- Why getting married isn’t the solution
- A new worldview on the modern family
Full transcript available here.
Contact Rosie and find JEDI resources at: https://www.changinglenses.ca/
Guest Bio
Jaime Ho is a CPA, CA who’s not your stereotypical accountant. She’s a creative artist, rock climber and baker, whose amazing cakes have been featured on the Food Network. Most importantly, she’s Rosie’s best friend, and zookeeper of two dogs and a cat.
References and Resources in this Episode:
Unfair Tax System for Canadian Single Seniors
https://singleseniorstax.wixsite.com/home/updates
https://www.cbc.ca/amp/1.6017270
Financial costs of being single:
https://www.theatlantic.com/sexes/archive/2013/01/the-high-price-of-being-single-in-america/267043/
https://www.wealthenhancement.com/blog/cost-of-being-single
Canadian Demographic Statistics:
https://www150.statcan.gc.ca/n1/pub/75-006-x/2019001/article/00003-eng.htm
https://www.statista.com/statistics/446168/canada-single-population-by-age-group/
Next Episode
Ep212: Everybody Knows Somebody with an Episodic Disability, with Melissa Egan
You may be aware of ways to accommodate physical and mental disabilities. But what about episodic disabilities?
If you don’t know what an episodic disability is, you’re not alone. Once you hear Melissa Egan describe it, you’ll probably realize that you, or someone you know, has one.
Melissa is the National Lead of Episodic Disabilities at Realize, a Canadian charity that fosters positive change for people living with HIV and other episodic disabilities. She helps companies create work environments that are accessible and inclusive.
Please join us in Changing Lenses to see through the eyes of people with episodic disabilities, and how we can support and accommodate their needs.
In this episode, you’ll learn:
- Practical ways to make your workplace inclusive and accessible for people with diverse abilities while centering the person.
- The difference between medical and social models of disability, and why one is more inclusive than the other.
- Why insurance disability plans are inadequate to accommodate employees with episodic disabilities.
- How employers can build a culture of accommodation (that doesn’t cost a ton of money).
- How employees can talk to their employer about accommodating their episodic disability.
Contact Rosie and find JEDI resources at: https://www.changinglenses.ca/
Full transcript available here.
Guest Bio and References/Links
About Melissa Egan:
Melissa is the National Lead, Episodic Disabilities at Realize. She has worked in the field of health and HIV for over 15 years as an educator and facilitator, developing and delivering trainings to diverse audiences across Canada. Melissa brings a commitment to inclusion, diversity, equity, and accessibility to her work, and she has worked extensively with marginalized, LGBTQ, and Indigenous people. Melissa holds a BA and BEd from Simon Fraser University in BC and is currently pursuing an MEd at OISE - University of Toronto.
Find Melissa and other resources on Realize’s website: https://www.realizecanada.org/en/
References and resources in this episode:
https://www.realizecanada.org/en/our-work/episodic-disabilities/
http://www.episodicdisabilities.ca/
https://supportedemployment.ca/
https://www.canada.ca/en/employment-social-development/campaigns/hiring-persons-disabilities.html
Changing Lenses: Diversify Your Perspectives - Ep211: Combatting Poverty with Neuroscience, not Financial Literacy, with Emily Heath
Transcript
Please note: the transcripts attempt to stay true to the essence of each conversation, while maintaining clarity and readability. As a result, certain "filler" words, and nuances of tone, emotion and emphasis will be missing.
If you're able, you're strongly encouraged to listen to the audio podcast. Transcripts are generated using a combination of speech recognition software and human editors, and may contain errors.
Ep21: Combatting Poverty with Neuroscience, no
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