Influence of Cognitive Biases on Solo Parents' Investments

/ 13

100%

Document text

Republic Act. No. 8972, often known as the "Solo Parents' Welfare Act of 2000," grants advantages and privileges to single parents and their children alongside providing funds for other purposes. According to Section 5, the DSWD will work with relevant agencies to deliver a comprehensive package of social development and welfare services for single parents and their families. This includes the livelihood development services such as training in livelihood competencies, basic business management, emphasis on values, and the offering of initial funding or employment opportunities. This may influence the selection of investment products of solo parents as it provides them with the support, resources, and legal recognition of their status. A "contract of insurance" is defined under Presidential Decree No. 612, often referred to as The Insurance Code of the Philippines, as an arrangement in which one party agrees to compensate another for a consideration against loss, damage, or responsibility coming from an unforeseen or contingent event. Single parents may benefit on insurance contracts by obtaining coverage for themselves and their dependents. It enables single parents to secure insurance coverage for themselves and their family, providing financial security and peace of mind. The Consumer Act of the Philippines (Republic Act No. 7394) was enacted to safeguard consumers' rights, promote their general welfare, and create standards of conduct for businesses and industries. The Act prohibits fraudulent, unfair, and unethical sales acts and practices. Single parents should avoid financial programs that promise unrealistic returns or concealed risks. The Act promotes transparency and ensures that financial products are presented honestly.

Filipino solo parents face a variety of hurdles, according to a study, securing permanent employment might be challenging, impeding their capacity to achieve financial stability and accumulate wealth. Even while employed, handling emotional demands relating to their children's growth adds a new level of complication. Furthermore, the social stigma of single parenting can be isolating and demoralizing. Adding to these obligations, some single parents have difficulty accessing government subsidies designed to help them, presenting an additional barrier to a secure future. Given this circumstance, single parents earning a minimum wage or less are eligible for a monthly cash subsidy of 1,000 pesos through the government assistance program. This financial aid is intended to help single parents manage their expenses and provide for their children's well-being.

While other studies acknowledge the influence of cognitive biases on decision making of investors, there is a population gap in understanding if cognitive biases influence the selection of investment products among solo parents as they are under-represented. This study aims to bridge this gap by focusing on solo parents in Dasmariñas. Ultimately, the researchers aim to empower solo parents with the knowledge and tools they need to make informed, sustainable investment decisions that can secure their financial future and their children's well-being.

-- According to a study, cognitive bias is a systematic inaccurate measurement in thinking that influence how people process information, interpret others, and come up with decisions. It can lead to erroneous thoughts or judgments and is frequently dependent on opinions, recollections, or personal and cultural beliefs. Biases are unconscious that help people make decisions faster and more efficiently. Heuristics (mental shortcuts), pressures from society, and emotions are all potential causes of cognitive biases. However, results from several studies have shown that cognitive bias does not have a significant influence on the selection of investment products as investors deliberately seek to reduce the influence of biases by rigorous decision-making procedures, extensive research, and emphasis on data-driven.

When it comes to investing, single parents’ strategies can be greatly influenced by confirmation bias. This bias, where individuals tend to favor ideas that align with their existing beliefs, might affect how financial decisions are made. Researchers have identified numerous potential benefits stemming from an individual's innate desire to seek confirmation that their beliefs are correct like enhancing individuals' personal growth by encouraging their favorable self-conceptions and qualities; fostering decision-making by reducing confusion and doubt; and increasing confidence by strengthening individuals' beliefs and dismissing contrary information. However, since confirmation bias causes investors to seek evidence that supports their pre-existing beliefs, it leads to negative influences like overconfidence and poor decision-making. Given their predetermined solutions, investors are unable to provide alternatives or new data for the same problems. This [unreadable] bias causes investors to lack diversification, increase risk, and band together when assessing investment opportunities. Ultimately, it leads to disastrous investment results. In contrast, other studies state that confirmation bias does not have a significant influence on investment decisions highlighting that investors often seek to expose themselves to as many different perspectives and information sources as possible. Diversifying access to information from a variety of sources of different kinds and quality can assist with challenging one's preconceptions and gain a more comprehensive understanding of potential investments.

Loss aversion in investing is the tendency of individuals to experience losses more severely than gains. In the negative effect of this, investors frequently hold onto losing investments for much longer than necessary, resulting in much larger losses. This phenomenon can lead to poor investment decisions, especially among single parents who are more concerned with their finances due to the responsibility of providing for their family. Loss aversion can manifest itself in a variety of ways, such as avoiding risky investments or holding onto underperforming assets for fear of incurring losses. However, this can also have a positive influence on their investment decisions because their fear of facing risks weakens their decision to invest. Loss aversion will encourage investors to be cautious and ensure the accuracy of information before investing. Investors are less likely to invest when there is a higher risk of loss. However, studies argue that loss aversion, the concept that losses are weighed more heavily than gains, has been found to be absent in little

been found to have no influence on investment decisions in specific research studies. One example is a study carried out in Surabaya involving Generation Z investors, which determined that anchoring did not influence investment decisions, unlike herding and disposition biases. Likewise, an examination on the dynamics of investor decision-making concerning mutual funds revealed that anchoring had no significant effect on investment choices, particularly when taking into account gender and levels of financial knowledge. Moreover, research indicates that anchoring does not have a significant effect on investment decisions. These discoveries collectively propose that anchoring bias might not consistently serve as a substantial factor in influencing investment decisions, as observed across diverse contexts and scenarios.

To succeed as an investor, single parents must approach their financial decisions with careful planning and consideration. Studies stated that suitable and common investment products for solo parents includes insurance, cash equivalents, and side businesses. These investment products are an excellent tool for providing solo parents with constant and reliable income that can help them finance their day-to-day expenses.

Investing in insurance benefits a solo parent by providing financial protection against unforeseen circumstances such as accidents, illness, disability, and death. The Senate recently enacted the Expanded Solo Parents Bill, which aims to improve the well-being of solo parents and their children. The bill aims to strengthen the benefits provided by the prior Solo Parents Welfare Act of 2000. The legislation provides for automatic health insurance coverage benefits for Filipino solo parents. This reduces the financial burden related to healthcare costs as well as fosters improved health outcomes for solo-parent families and serves as a reason for the importance of investing in such investment products (e.g., life insurance, health insurance). According to studies, solo parents view insurance as an essential investment owing to the necessity of coverage against potential financial obligations, notably in health, automotive, and life insurance. It also states that insurance is more important than traditional savings for education and retirement planning initiatives.

An investment in insurance, especially life insurance, is considered a way for solo parents to reach monetary stability and tranquility, protecting themselves and their dependents' future well-being. However, a study stated that despite the accepted need for insurance, solo parents usually delay their acquisition because of financial restrictions. Also, solo parents avoid insurance because they see it as a waste of money, given the extent of their limited financial resources, and they have an irrational fear of addressing prospective financial risks.

Most financial professionals advocate keeping three to six months' worth of expenses in cash equivalents such as savings accounts in the event of an emergency. Many financial advisers believe that setting up these accounts should be the first step in a family's financial planning, and that prioritizing an emergency fund like savings accounts allows families to prevent high-cost loans when an emergency occurs. Solo parents prefer short-term low-risk investments and often overlook long term planning. Cash and cash equivalents have no need for large outlays and pose very minimal risk than long-term investments. These investments benefit solo parents by its liquid options to keep their cash safe but accessible in case of an emergency. An emergency fund, which can be held in cash equivalents, can provide a safety net during difficult times. This money can cover unexpected expenditures and provide immediate access to funds. However, a study stated that solo parents with limited incomes are unlikely to save money and choose this type of investment. Urgent needs occupy the majority of resources and lead to the accumulation of assets and cause savings to be their last priority.

Investing in side businesses (e.g., tutoring, real estate, home based food businesses, online retailing, and sundry stores) provides an additional source of income, allowing solo parents to fund necessary expenses which include housing, school, and healthcare for their children. Dropshipping has evolved as a viable side hustle option in recent years, providing a convenient and flexible alternative for solo parents to earn money while taking care of their children. Investing in various side businesses not only benefits their financial well-being, but also allows solo parents to grow as an individual, have more flexibility, and gain empowerment. Solo parents prefer side businesses for flexibility in work hours and location, aiding in balancing home responsibilities while earning extra income. These ventures offer autonomy in decision-making and skill utilization, allowing them to monetize their talents and passions. Moreover, side businesses provide supplemental income crucial for covering expenses, fostering long-term security and potential for future entrepreneurship. However, solo parents may choose not to pursue side businesses due to the lack of financial support, entrepreneurial skills, and business resources, stigmatization by society, as well as issues in balancing their domestic and business responsibilities.

These investment products can provide solo parents with financial stability, safety, and additional income, allowing them to create a better future for themselves and their family. However, it is still crucial for solo parents to recognize and address their cognitive biases to make informed decisions regarding their selection of investment products.

This study aims to know the influence of cognitive biases on the selection of investment products of single-parent. This also aims to answer the following questions regarding the chosen topic which is stated below:

1. What is the assessment of the respondent on the factors on the cognitive biases? In terms of:

1.1 Confirmation Bias

1.2 Loss Aversion

1.3 Anchoring

2. Which investment product do single parents want to or are currently engaged with?

2.1 Insurance

2.2 Cash Equivalents

2.3 Side Businesses

3. Is there a significant influence cognitive biases have on the selection of investment products?

A number of studies have identified significant cognitive biases, such as confirmation bias, loss aversion, anchoring and loss aversion, which may influence the selection of investment products of single parents.

influence the investment selection of single parents. Confirmation bias may lead single parents to only see information that backs up what they already think about investments, potentially resulting in overconfidence, slow down their decision-making, and make them less likely to spread out their investments. Loss aversion may push them toward conservative investment plans. Anchoring could make them focus too much on past data or specific signs when they are making investment choices. Recognizing the influence of these cognitive biases can help develop interventions tailored to empower single parents to make more informed decisions resulting to having financial stability.

Single Parents – Understanding how biases influence their choices allows them to make more informed decisions, resulting in greater financial security and stability. Furthermore, the study's findings can help to shape the development of educational resources customized to their specific needs, thereby increasing their financial knowledge.

Investment Institutions: Insurance Companies: Recognizing biases in single parents' insurance choices can assist the creation of products that cater to their needs, addressing tendencies toward long-term planning or complex information. For instance, framing products to emphasize protection can counteract loss aversion.

Financial Institutions: By knowing single parents' risk tolerance and short-term demands, financial institutions can offer choices that appeal to their preferences. This includes providing a variety of options (confirmation bias), emphasizing the flexibility and benefits of savings accounts (anchoring bias), and providing guaranteed returns or highlighting security (loss aversion).

Local Community – y analyzing data specific to Dasmariñas enables targeted support programs and financial literacy initiatives for single parents. Also, raising awareness about the challenges single parents face in making wise investment decisions can foster local collaboration and resource provision to promote their financial well-being.

Researchers – It provides a framework for analyzing existing data using cognitive biases, as well as a foundation for replicating and expanding the research in various contexts. This encourages collaboration and leads to a better understanding of cognitive influences on financial behavior.

Future Researchers – This work provides a foundation for future research. It offers the framework for investigating specific biases and their effects on various populations or geographical areas, allowing for comparative analysis and improving future study questions and approaches.

Scope and Delimitation

This research focuses on the influence of cognitive biases on selection of investment products of single parents in Dasmariñas, Cavite. The researchers limited the study to 365

single parents living in Dasmariñas where each of the respondents will be provided a

questionnaire through Google Forms or printed questionnaire to answer. Furthermore, an

informed consent form will be given to the respondents. This will serve as a formal

agreement and evidence that the data they share will be confidential and will remain

between them and the researchers.

Anchoring – A cognitive bias that occurs when people rely heavily on the first piece of

information they find or presented when making a decision.

Cash Equivalents – Highly liquid assets with a short maturity term, usually less than

three months, are easily convertible into cash, and are thought to be nearly as good as

cash. Treasury bills, for example, are short-term government securities with maturities

ranging from a few days to a year and are sometimes regarded as cash equivalents since

they may be swiftly sold in the secondary market for cash without incurring large losses.

Cognitive Biases – Cognitive biases represent systematic errors in thinking within the

psyche, arising from deficiencies in processing and interpreting information, which

consequently influence individuals' decision-making and judgments. Originating from

individual behavior, these biases can potentially influence investment decisions made by

single parents.

Confirmation Bias – the tendency to interpret new evidence as confirmation of one's

existing beliefs or theories

Loss Aversion – describes how people tend to feel the influence of losing something more

intensely than the joy of gaining something similar. It's like being more afraid of losing

than feeling happy about winning.

Insurance – Provides financial protection against risks and losses. Single parents who are

investing should consider life insurance to provide for their children, health insurance to

cover medical bills, and additional retirement plan/insurance.

Investment – Investing involves dedicating funds for a specific duration to generate a return

that adequately accounts for the invested time, anticipated inflation rate over the investment

period, and the associated uncertainty.

Side Businesses – Involves extra revenue-generating ventures in addition to their

investment, like online retails, home services, food businesses operated from home,

tutoring services, real estate investments, and neighborhood sundry stores. While handling

caring responsibilities, these activities assist diverse sources of income, create savings,

and maintain financial security.

Single Parent – A single or solo parent is an individual who is solely responsible for the

care and upbringing of a child or children, typically without the presence or support of a

spouse or partner.

This chapter will tackle the research design which is the approach employed for conducting the study. Next is the research locale where the study is being conducted. Third are the respondents or target population of the study. Fourth is the sampling technique which consists of the method utilized by the researchers when selecting the respondents for the study. Fifth, data gathering procedure which entails the process of acquiring the data necessary for the study. Sixth is the research instrument that the researchers will utilize to gather data. Seventh, data analysis which is the technique of discovering insights from data collected. Finally, the statistical treatment of data used to analyze, interpret, and draw conclusions from the data collected.

This study uses a quantitative correlational approach as it mainly focuses on the influence of Cognitive Biases on the Investment Products that single-parent commonly avail. Correlational research findings can be used to estimate the prevalence and relations between variables, as well as to foresee occurrences based on current data and knowledge.

This research is being conducted in the City of Dasmariñas, Cavite to assess the Influence of Cognitive Biases on Ideal Investment Products among Single-parent. The city is governed by Mayor Jenny Austria-Barzaga, who currently serves 75 barangays in Dasmariñas.

This study's target population will focus on 365 single parents living in Dasmariñas, Cavite. Either male or female that is raising their children alone. They can be individuals who already have an investment or are still planning to engage with the specified investment product

This study uses a non-probability purposive sampling technique for selecting 365 solo parents that are residing in Dasmariñas, Cavite, who meet specific criteria related to the subject matter and purpose of the study. Individuals in non-probability are selected based on non-random criteria. The criteria is whether the single parent is married or not and having one or more children in their custody. Not every person has a chance of being included. This type of sampling, also referred to as judgment sampling, encompasses the researcher applying their expertise to select a sample that is most relevant to the research objectives.

To efficiently gather data, the researchers will use both digital and traditional approaches. First, the researchers will modify a questionnaire derived from multiple research studies in order to obtain the necessary information from our target population. The gathered questionnaire will be polished to match with the subject matter. Following that, the researchers will create two distinct methods of data collection: one via Google Forms and the other through hard copy distribution for the convenience of the respondents.

For the online survey, the researchers will create a Google Form that mirrors the questionnaire's content. Simultaneously, the researchers will produce printed copies of the questionnaire for respondents who prefer traditional methods or lack internet access. The questionnaires will be distributed to 365 solo parents in Dasmariñas, encompassing those with and without investments. Regardless of the method used, all participants were

given an informed consent form that explained the study's purpose, data collection procedures, and the right to withdraw at any time.

Upon completion, heartfelt gratitude and appreciation will be expressed to the respondents for their valuable contributions. Finally, the research instruments will be compiled for analysis and interpretation of the gathered data.

The researchers intend to employ adapted-modified surveys. This method is crucial in order to obtain the necessary data for the study. The evaluation will focus on 365 respondents in Dasmarinas, Cavite, who are single parents, whether married or not. To gather data for the study, respondents will be given a close-ended survey questionnaire, utilizing a quantitative approach. The close-ended survey questionnaire will serve as the research instrument for data collection.

The questionnaire for the survey will have four sections and contain questions about the respondent's demographic profile. The Four Sections, composed of Sections A-D will answer the following statement below:

Section A – To determine the investment products that the respondents are currently investing or planning to do so.

Section B - Assessment of the respondents on the factor of cognitive bias in terms of Confirmation Bias.

Section C - Assessment of the respondents on the factor of cognitive bias in terms of Loss Aversion.

Section D - Assessment of the respondents on the factor of cognitive bias in terms of Anchoring.

The study will utilize Excel and Statistical Package for the Social Sciences (SPSS) which are well recognized as valuable tools for quantitative data analysis. The collected data will be processed and analyzed by the use of SPSS to explore the factors influencing the selection of investment products of the single parents. It will utilize binary logistic regression in SPSS to analyze and assess the data for variances among the factor variables. The statistics will show the binary dependent variable's actual and predicted values. Following that, a constant must be added, values predicted by the model must be the estimated parameters and their covariance in a specified XML file, and an analysis must be done to acquire the data entered in the SPSS using the binary logistic regression.

This study will utilize the frequency and percentage distribution to tabulate and analyze the gathered data. The frequency will be determined based on the number of respondents and shows how frequently responses occur. Weighted mean, will also be utilized by multiplying the weight associated with a predetermined event or results including its associated quantitative outcome and summing all the products together. Standard deviation is also part of analysis to measure value in a sample and determine how spread out or reliable the outcome is in the given set of data. The direction and strength of the correlations between variables can be measured with the use of binary logistic regression, since this type of regression finds a correlation between binary outcome variables and predictor variables, it predicts a variable that is categorical compared to a constant variable. The binary logistic regression method provides important insights into the factors influencing

investment decisions by analyzing how these indicators influence the odds of choosing specific investment products among single parents.

Table 1 illustrates the assessment of cognitive biases observed in the selection process of single parents regarding investment products. In particular, these biases consist of confirmation bias, loss aversion, and anchoring, as specified in the table mentioned above. The results depicted in statements 1.1 (confirmation bias), 1.2 (loss aversion), and 1.3 (anchoring) as well as their related sub statements collectively suggest a beneficial perspective, implying the presence of these cognitive biases in the assessment of single parents. According to Ruhl (2023), the influence of cognitive bias is evident in shaping their thought processes, leading to the distortion of information processing. In the context of engaging with investment products, single parents exhibit confirmation bias, wherein their beliefs tend to align with preconceived notions, consequently influencing their financial decisions (Dunlop, 2022). Moreover, they have a tendency to adhere to familiar and convenient choices, often overlooking alternative options and avenues for exploration (Hoffman, 2024). Of particular note is the significant discovery in statement 1.2 (loss aversion), which produced an average weighted mean of 3.20, highlighting the hesitance of single parents to experience financial losses and their preference to reduce risks whenever possible (Aguilar, 2023).

From the data presented in table 2, it is evident that most respondents favored side businesses with 40%. This finding aligns with Palka (2023), that single parents often go for side businesses because they’re flexible with hours and location, helping them to effectively manage family duties while supplementing their everyday needs with money. Following that is insurance, with about 39.73% of respondents choosing it. This backs up the idea that single parents see insurance as a crucial investment for covering them against all kinds of financial liabilities, like health issues, automotive problems, and life coverage. It shows that insurance matters a lot to single parents, even more so than traditional savings, especially when it comes to endeavors like planning for their child’s education or their own retirement as emphasized by Cornfield (2018). Lastly, cash equivalents ranked the lowest at 20.27%. The data shows that most single parents who are tight on money are not too keen on putting their funds towards this type of investment. This observation correlates with the assertion made by Lopez and San Juan (2019) that individuals in this demographic group are less inclined to prioritize saving money as well as cash equivalents, primarily due to pressing financial needs that consume a significant portion of their income, leading to asset accumulation taking precedence over savings.

Table 3 presents the findings of the intricate relationship between investment vehicles and cognitive biases among 365 participants. The association with confirmation bias in insurance was 1.366, with loss aversion of 1.638 and anchoring of 2.467. In Cash Equivalents, the association with confirmation bias was 0.670, loss aversion was 1.538, and anchoring was 0.123. For side businesses, confirmation bias was 1.560, loss aversion was 0.765, and anchoring was 0.686. Pseudo R-squared values indicate the predictive ability of cognitive biases on investment choices, with higher values indicating stronger predictability and lower values suggesting weaker influence. An R-squared of 0.10 for insurance implies that approximately 10% of the variation in insurance decisions can be explained by the examined cognitive biases. Similarly, cash equivalents exhibit a lower R-squared value of 0.012, suggesting that these biases explain only around 1.2% of the variation in cash equivalent selection. The significance levels for confirmation bias, loss aversion, and anchoring in insurance were 0.502, 0.920, and 0.123, respectively. These findings suggest that none of these associations are statistically significant, failing to [unreadable]

provide substantial evidence for a strong connection between insurance decisions and cognitive biases. Similarly, the lack of significance is reflected in the results for cash equivalents: confirmation bias 0.163, loss aversion 0.183, and anchoring 0.923, indicating

an absence of a significant association. The significance levels for side businesses are as follows: confirmation bias 0.071, loss aversion 0.312, and anchoring 0.143, further reinforcing the absence of a robust relationship. These findings suggest that cognitive bias might not yield a significant influence over the selection of investment products. Budiman and Ervina (2020), as cited in Loris and Jayanto (2021), argues that anchoring does not

influence investment decisions. Despite the widespread belief in the significant role of loss aversion in financial choices, recent studies, like those by Aini and Lutfi (2019), suggest otherwise, indicating a minimal influence on investment decisions. Furthermore, confirmation bias does not influence investment choices, challenging conventional beliefs and underscoring the complex nature of decision-making processes in investments ("Can cognitive biases lead to investment mistakes?", 2024). This discovery highlights the need for a more nuanced understanding of the cognitive processes involved, potentially necessitating a reassessment of strategies aimed at mitigating biases in investment selection.

1. Exploring cognitive biases in the selection process of investment products among a diverse demographic unveils intriguing insights. Specifically, confirmation bias, loss aversion, and anchoring bias are thoroughly assessed. An in-depth comprehension is attained through the investigation of confirmation bias (1.1), loss aversion (1.2), and anchoring bias (1.3), along with their related sub-statements. This understanding reveals that these cognitive biases are widely present in the overall framework of making investment decisions. These discoveries provide valuable perspectives into the intricacies of decision-making among different groups of people, going beyond just single parents. By illuminating the frequency of cognitive biases, this study contributes to a greater understanding of how individuals approach investment options, leading to the development of more knowledgeable decision-making strategies and better financial results.

2. Among a sample size of 365 respondents, it was discovered that side businesses are the favored or current investment choice for solo parents, comprising 40% of the responses. Following closely behind are insurance products, accounting for 39.73% of the responses, and cash equivalents, representing 20.27% of the total responses. This insight into investment preferences emphasizes the complex financial factors that solo parents encounter, underscoring the significance of customized financial strategies to meet their distinct circumstances and goals.

3. The research findings did not find strong evidence to support the idea that cognitive biases significantly influence how single parents make decisions about which investment products to choose. Despite utilizing various biases such as confirmation bias, loss aversion, and anchoring in relation to diverse investment products, the data failed to establish a definitive relationship among these variables. While these biases may play a role in individual choices, they are not the main factors influencing single parents when selecting investment products. This insight into investment preferences emphasizes the complex financial factors that solo parents encounter, underscoring the significance of customized financial strategies to meet their distinct circumstances and goals.

The study explored the influence of cognitive biases such as confirmation bias, loss aversion, and anchoring bias on the selection of investment products made by single parents. Even though single parents often showed tendencies that are aligned with these biases, the study did not find a strong relationship between these biases and the specific investment products they chose. Overall, cognitive biases may not be the primary drivers of investment decisions among single parents, indicating the need for further research in this intricate area.

The researchers concluded that there is still no sufficient evidence claiming that cognitive biases influence the selection of investment products of single parents.

Single Parents – Single parents are advised to focus on enhancing their financial knowledge in order to improve their investment approaches. Furthermore, the establishment of clear investment goals, whether short-term such as establishing an emergency fund or long-term such as preparing for retirement, holds significant importance. These goals will assist in identifying the most suitable investment opportunities. Ultimately, despite not being the primary determining factor, single [unreadable]

parents can benefit from acknowledging their own inclinations. Financial decisions can be more fair and unbiased by identifying possible biases toward familiar options, avoiding potential hazards, and abstaining from leaning too much on previous experiences.

• Dasmariñas City Solo Parent Organization – To create programs and policies that are collaborated with other researchers and experts to create and implement such output that is anchored and tailored to the needs and level of financial awareness/literacy of single parents. Also, the organization may extend help on single parents by giving them access to educational resources and converse with financial advisors through community events, websites, and educational materials, allowing single parents to make informed choices in accordance with the objectives they have and risk tolerance levels.

• Insurance Institutions – Offer premium payment choices, financial management workshops, insurance literacy courses, or webinars which may help single parents considering that they may have a fluctuating income streams.

• Financial Institutions – Provide online financial planning resources and calculators that can assist single parents establish financial objectives, determine progress, and come up with sound decisions regarding how to use their money effectively.

• Institutions Catering Side Businesses – Conduct courses, seminars, or webinars regarding topics important to single parents managing side businesses, including budget-friendly marketing, time management methods, and small business tax planning.

• Researchers – Continue to explore the nature of cognitive biases in investment decision making across diverse demographics.

• Future Researchers – Future researchers should focus on addressing the two main limitations of the current study. Initially, although the study examined cognitive biases, there are additional variables that likely exert a more significant influence on the investment choices of single parents. These variables, which include but are not limited to income levels, risk tolerance, access to financial resources, and social support networks, should be thoroughly examined in future research. Secondly, the utilization of a non-probability sampling technique in this study constrains the extent to which the findings can be generalized. To enhance generalizability, future research endeavors can enhance their sampling methodologies and expand the demographic range to encompass single parents from various geographic locations, socioeconomic statuses, and family compositions. Furthermore, prospective research could conduct a more thorough exploration of specific cognitive biases and evaluate potential interventions to alleviate their adverse impacts. By addressing these key points, future research can improve our understanding of investment decision-making among single parents and provide insights into strategies for promoting financial literacy and well-being in this demographic.