Behavioral finance, also called behavioral economics, is a field of finance that recommends psychology-based theories to explain stock market anomalies and the resulting effect on markets (Sewell, 2005). It is important to learn about behavioral finance because it helps explain why and how markets might be affected or inefficient and the influence of psychology on the behavior of financial experts. As we know, there are many cases in which emotions and one's psychological state can influence one's decisions, causing us to behave in unpredictable ways. Using psychology you can explore human judgment, behavior, and well-being and learn important facts about human assumptions and how they play into traditional economic assumptions. Behavioral finance and financial crisis Behavioral finance is taken into consideration for the prevention and/or resolution of financial problems. crisis for the simple fact that the last crisis began with the wave of subprime mortgage defaults in 2007 and with people's ambitions to make money and achieve the “American dream”. Many American families have succumbed to the pre...