Millennials Make Wiser Decisions Than Their Grandparents, New Study Reports
Your grandma is more adventurous than you. When it comes to taking risks, a new study says that younger people play it safe more often than the older crowd. However, grandma's riskier decision may not be the right one — Millennials are also more likely to make wiser choices.
Research group Max Planck Institute for Human Development in Munich, Germany, found that older people are optimistic. This attitude makes them less risk-averse and bolder in their decision making. To determine this, scientists conducted a small study analyzing the two groups. The older subjects were between 63 and 88 years old, while the younger group fell between 18 and 30.
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Participants were given more than 100 scenarios in which they had to choose between two options which would either win or lose them money. They also were given details about how much was at stake in addition to the probability of striking it rich.
“The older participants were more optimistic in their assessments of the possibility of winning; accordingly, they were more daring in their choices,” says study co-author Thorsten Pachur, Ph.D, in a statement. “What’s more, they gave the same weight to potential wins and potential losses, whereas the younger participants were more focused on avoiding potential losses.”
Being bold isn’t the only benefit of having a good attitude. An Irish study found that optimism can prevent older adults from becoming frail, which helps keep their minds sharp. In fact, people with bad attitudes about aging actually exhibited worse cognitive abilities and walked more slowly than their positive peers.
But while this study found that older people have better attitudes, they also make worse decisions. Researchers found that younger people were more likely to choose the option expected to have a higher monetary return.
“These differences in decision quality are attributable to the decrease in fluid intelligence in old age — that is, to older adults’ decreasing ability to process information and solve problems quickly,” says Pachur.
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