Ep. 89: The Followers & the Rebels

What does behavioral economics and finance have to do with understanding teens’ decision-making? More than you’d think. Michelle Baddeley’s research in Copycats and Contrarians: Why We Follow Others...and When We Don’t, helps explain why people copy each other and why they rebel: a common focal point in parent/teen conversations. With the best of intentions, parents often struggle to help their teen develop a critical perspective when navigating mature decisions. But by considering the various internal and external forces at play in their teens’ experience, parents can better guide their teens to making healthier decisions. Much of what we know about decision making pivots on social learning, or the theory that new behaviors are acquired through observation and imitation. Anyone in a new situation is susceptible to this: the less we know about a topic, or the less social cues we have in a given setting, the more apt we are to copy those around us. And the most vulnerable group to this influence is first-year high school/university students. When I asked what wisdom Dr. Baddeley could offer parents who want to help their teens critically combat this influence, Dr. Baddeley focused on the importance of shared trust, communication, and anecdotes. By illuminating the consequences of a misguided decision more tangibly, Dr. Baddely noted, parents can help their teen better consider the outcomes without eroding trust. Such illustrations are reinforced in economics: when the implications are imagined more immediately, we can make stronger decisions. Another important topic covered was fruits of contrarians’ labor, and how dissent is actually quite essential to functional families. By striking the balance between unity and rebellion whilst acknowledging their teens’ voice, parents will have an easier time navigating conflict. This too is supported in her research. While contrarians may simply enjoy the risk of being different, they do push the copycats to reconsider their position. The same can be said about rebellious teens. Most of the time, they may be wrong. But sometimes, they’re right. And by squashing their perspective immediately by pulling rank, parents can do more harm than good. Ultimately, though, sometimes the decision is entirely in the teens’ hands. Once they leave the house to go to college, they will have the final say. And the best way Dr Baddely believes parents can support their teens without eroding their trust is to engage them in system 2 levels of thinking. Simply put, we have two main systems of thought: system 1 being the instinctive side and system 2 being more rational and controlled. Dr. Baddeley explains that while system 1 was more useful for early humans in hunter-gather settings, system 2 is more fruitful for today’s circumstances. And teens, often quick to engage system 1 in their decision-making, can be redirected into system 2 through parental encouragement. This is best exemplified when parents ask their teen to consider making the decision over a longer period of time. Having the teen make a comprehensive case for the decision also works in accomplishing this task. Rich with more multidisciplinary insights, my podcast with Dr. Baddeley can help you enrich your relationship with your teen whilst learning a thing or two about yourself in the process.