The Curse of Knowledge: The Downside of Financial Expertise

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Financial advisors are crucial in helping clients make informed decisions about their money.

But there's a fascinating psychological phenomenon known as the "curse of knowledge," which suggests that having expertise in one area, like finance, can impede effective communication.

The curse of knowledge defined

The curse of knowledge is a cognitive bias that occurs when someone assumes others have the same level of knowledge or expertise as you do.

This bias can cause you to underestimate the knowledge gaps of your clients and colleagues.

Here’s an example:

In one experiment, participants were asked to guess how accurately they could identify the name of a song by listening to it tapped by another participant with their figure on a tabletop.