Behavioral finance is a field of study that combines principles of psychology with finance to better understand how individuals make decisions regarding money and investments. It examines how cognitive biases, emotions, and social influences impact financial decisions, and seeks to explain why people often make irrational choices when it comes to managing their finances. Researchers in this area explore topics such as risk tolerance, herding behavior, overconfidence, and loss aversion to better understand and predict investor behavior. By studying the psychological factors that influence financial decisions, behavioral finance aims to provide insights that can help individuals and organizations make more informed and rational choices in the financial markets.