Behavioral finance in economics examines how psychological factors influence financial decision-making. This field highlights the impact of emotions, biases, and social influences on investors. By understanding these elements, individuals can make better financial choices and improve their investment strategies. Trends show that awareness of behavioural finance is growing, as it offers insights into market anomalies and irrational behaviours. This article explores key concepts in behavioural finance, including cognitive biases and risk perception. Readers will gain valuable knowledge on enhancing their financial literacy and decision-making processes.