THE ROLE OF EMOTION IN FINANCIAL DECISION-MAKING: A NEUROFINANCE APPROACH- A STUDY ON TELANGANA REGION

The main purpose of this article is to explore the emerging field of neurofinance, which investigates the intricate relationship between neural processes and financial decision-making. By delving into the neural underpinnings of economic choices, the paper aims to enhance our understanding of how the brain influences financial behaviors, thereby contributing to a more comprehensive perspective on economic decision-making Design/Methodology/Approach Neuroscience is the subject which studies the functioning of human mind and how the financial decisions making process are influenced by the affective of neurological basis. The research adopts a systematic and comprehensive approach, employing a literature review to assimilate a wide range of studies across neurofinance, neuroeconomics, and related disciplines. The authors analyze empirical research, neuroimaging studies, and behavioral experiments to construct a cohesive narrative that links neural activities to financial decision-making processes Findings Reduced financial exploitation and fraud would contribute to a more just society, where individuals are less likely to be manipulated or taken advantage of by unscrupulous financial institutions. This would help restore trust in financial systems and improve overall economic fairness. By recognizing the emotional underpinnings of peer influence, society could shift toward norms that promote long-term financial health rather than short-term, emotionally-driven consumerism. For example, social networks could play a role in encouraging responsible saving or investing behaviors, or even discouraging harmful financial practices such as payday lending or excessive borrowing.