How superstitions can affect our financial decisions

When we think of superstitions, images of black cats, broken mirrors, or unlucky numbers often come to mind.

But while many of us write these off as harmless quirks, superstitions do have the ability to shape our social behaviours and subtly influence how we spend, invest, and plan for the future.

In a country like Singapore, where traditional beliefs coexist with a highly modern financial system, these influences can sometimes be costly. Understanding how superstition intersects with money and insurance therefore is crucial for anyone who wants to make informed, rational decisions without ignoring cultural context.

The subtle power of numbers and dates

Across Asia, certain numbers carry strong symbolic meanings. In Chinese culture for example:

• 8 represents prosperity and wealth.
• 4 sounds like “death” and is widely avoided.

These associations aren’t trivial. Research and real-world examples reveal that they can significantly impact financial behaviour:

• Property purchases: A 2022 study from the National University of Singapore found that apartments with auspicious numbers, such as “8”, often command higher prices than comparable units. The study examined property transactions over a decade, showing a clear premium for “lucky” addresses even when other factors like floor area or location were similar.
• Vehicle registration plates: Car buyers often pay thousands more for “lucky” plates. For example, in 2021, a number 888 plate in Singapore sold for S$66,000 at auction, far exceeding the base registration cost.
• Lotteries and gambling: Singaporeans spent a record S$12.2 billion on lotteries, sports betting, and horse racing in FY 2023/24. Patterns indicate that people gravitate toward numbers considered lucky during festivals or culturally significant periods, even when the odds of winning remain unchanged.
• Investing: Researchers in China found that stocks with “lucky” numbers in their code sometimes experienced abnormal trading patterns, driven by investor sentiment rather than fundamentals.
• Insurance: In Singapore, anecdotal evidence suggests some people delay signing insurance policies or investment plans until “auspicious” dates, unaware that this choice may expose them to short-term risk such as lack of coverage.

Behavioural bias meets superstition

Behavioural psychology offers insight into why superstitions persist despite modern education and financial literacy. This phenomenon is often referred to as “magical thinking”, the belief that unrelated actions or symbols can influence outcomes.

One theory is that “magical thinking” helps humans reduce perceived uncertainty. Financial markets, health risks, and life events are all inherently unpredictable, but superstitions provide psychological comfort, creating a sense of control even when none exists.

Cognitive science also links superstitions to pattern recognition and risk perception. Our brains are wired to detect patterns, even where none exist, as a survival mechanism. This wiring explains why people perceive certain numbers or dates as lucky or unlucky, and why these perceptions can influence financial choices.

Balancing beliefs with rational planning

Interestingly, superstitions are not inherently harmful.

• Positive effect: Choosing an auspicious date to purchase insurance can make you more confident about committing to long-term financial planning.
• Negative effect: Over-reliance on “lucky numbers” or omens might lead to poor investment choices or inadequate insurance coverage because the decision is guided by symbolism rather than facts.

The key is awareness and balance. Superstitions can co-exist with rational planning as long as they do not override logic or financial prudence.

Here are practical ways to strike a balance:

1. Use superstition as a motivational tool, not a decision-making guide: If choosing an auspicious date encourages you to start investing or secure coverage, it’s fine; but always check the fundamentals first.
2. Prioritise risk coverage over symbolic timing: Insurance exists to protect you now, not just on a “lucky” day. Delaying coverage may leave you exposed.
3. Understand market influence: Awareness of how collective superstitions affect property prices or secondary markets can help you navigate trends without blindly following them.
4. Combine confidence with logic: Superstition should enhance comfort, not replace research, planning, and risk assessment. Decisions backed by evidence are far more reliable than those guided by luck alone.

Conclusion

Superstition is human nature. It provides emotional comfort in uncertain situations, and in moderation, it can even be helpful. But in financial decision-making, awareness and intentionality are key.

Use superstition as a tool for motivation, not a roadmap. Focus on research, risk assessment, and proper planning. Understand its influence on markets and your own behaviour, and make sure your choices, whether in insurance, investments, or property, are grounded in evidence, not just luck.

After all, while a lucky number can feel comforting, a solid financial plan backed by knowledge and preparation is what truly secures your future.