Most of you have probably heard the phrase “burying your head in the sand.” What many may not know is that this idiom originated from the old myth that ostriches bury their heads in the sand to hide from predators. So, what do ostriches and sand have to do with your money?
The Ostrich Effect is a cognitive bias that leads people to avoid negative information or feedback. Financially, this might look like avoiding conversations about money or ignoring a situation that could reveal an uncomfortable truth. In other words, the desire to avoid unpleasant information can cause someone to “bury their head in the sand.”
However, our experience has been that it's almost always better to face difficulties head-on rather than ignore them. Avoidance can often lead to worse outcomes — and greater stress — over time.
A common example of the Ostrich Effect is when someone overspends, gets into unmanageable debt, and continues to dig a deeper hole instead of taking steps to pay it off. Another example is juggling multiple financial goals — such as supporting a growing family and covering health care, college, and activity costs — while neglecting to plan for one’s own health and lifestyle needs later in life.
Typical phrases we hear that reflect the Ostrich Effect include “It’s not a problem” or “I don’t have time to deal with it right now.” This is where a financial advisor can help — by identifying potential problems early and recommending proactive steps before things become overwhelming or stressful enough to make you want to escape and “bury your head in the sand.”
Financial advising isn’t just about investing money — it’s also about helping you make thoughtful financial decisions around your goals and challenges.