Daniel Goldstein: The battle between your present and future self

The video discusses the story of Odysseus and the Sirens as an example of a commitment device, a strategy to resist temptation by binding oneself to a decision made with a cool head. It explores the concept of two selves: the present self, which seeks immediate gratification, and the future self, which desires long-term benefits. The video highlights the challenges of using commitment devices, such as the constant reminder of lacking self-control and the ability to weasel out of them. It also introduces tools to help people visualize their future financial selves and make better saving decisions.

What strategy did Odysseus use to safely hear the Sirens' song?

• He sailed a different route.

• He tied himself to the mast.

• He covered his ears with wax.

• He asked the Sirens to stop singing.

What is a commitment device?

• A way to increase financial wealth.

• A method to improve physical strength.

• A decision made to avoid future regret.

• A tool to enhance memory.

Why is resisting temptation difficult according to the speaker?

• The future self has more resources.

• The present self is in control and seeks immediate gratification.

• The present self is more focused on long-term goals.

• The future self is stronger than the present self.

What is one limitation of commitment devices mentioned by the speaker?

• They are only effective for financial goals.

• They require too much time to set up.

• They can be a constant reminder of lack of self-control.

• They are too expensive to implement.

How did the speaker use commitment devices during their post-doc?

• By writing a book.

• By attending seminars.

• By exercising daily.

• By writing five pages a day or losing money.

What is the 'two selves problem' in the context of saving?

• Neither self is concerned with saving.

• Both selves want to save equally.

• The future self wants to save, but the present self wants to spend.

• The present self wants to save, but the future self wants to spend.

What tool helps people visualize their future financial outcomes?

• A financial advisor.

• A budgeting app.

• A distribution builder.

• A savings calculator.

How does virtual reality help with saving behavior?

• By showing future financial statements.

• By aging the user's appearance to connect with their future self.

• By providing financial advice.

• By simulating different investment scenarios.

What emotional reaction does the virtual reality tool aim to evoke?

• Joy of spending.

• Indifference to financial planning.

• Fear of the present.

• Connection to the future self.

What is the purpose of the behavioral time machine?

• To calculate current expenses.

• To visualize future wealth and emotional reactions.

• To predict stock market trends.

• To provide real-time financial advice.