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.
January 2025
October 2023
The Psychology of Money and Spending: Why We Make Irrational Financial Decisions
Mental accounting, the pain of paying, loss aversion, and the cashless effect explain why smart people make terrible financial decisions.
January 2023
What Is the Psychology of Money: How Emotions Drive Financial Decisions
The psychology of money explains how emotions, biases, and mental shortcuts drive financial behavior — often more than income, intelligence, or...