Mental Accounting: Why a Dollar Is Not Always a Dollar
You have two $100 bills in your wallet: one earmarked for rent, one for entertainment. You spend the entertainment $100 on dinner.
All articles tagged with "Mental Accounting"
You have two $100 bills in your wallet: one earmarked for rent, one for entertainment. You spend the entertainment $100 on dinner.
Mental accounting, the pain of paying, loss aversion, and the cashless effect explain why smart people make terrible financial decisions.
The psychology of money explains how emotions, biases, and mental shortcuts drive financial behavior — often more than income, intelligence, or...