Mental Accounting

January 2025

• Jan 8, 2025ConceptsMental Accounting: Why a Dollar Is Not Always a DollarYou have two $100 bills in your wallet: one earmarked for rent, one for entertainment. You spend the entertainment $100 on dinner.28 MIN2.3k

October 2023

• Oct 1, 2023ConceptsPsychological Insights Into Financial Decision MakingMental accounting, the pain of paying, loss aversion, and the cashless effect explain why smart people make terrible financial decisions.14 MIN7.0k

January 2023

• Jan 1, 2023ConceptsThe Psychology of Money: How Emotions Influence SpendingThe psychology of money explains how emotions, biases, and mental shortcuts drive financial behavior, often more than income, intelligence, or...21 MIN4.9k