Understanding Mental Accounting How Our Minds Influence Financial Decisions
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Imagine receiving an unexpected tax refund of $1,000. What would you do with the money? Many of us might instinctively consider this windfall as "bonus" money, mentally separating it from our regular income. This tendency to compartmentalize our finances is known as "mental accounting," and it can significantly impact our financial decisions.
Understanding Mental Accounting How Our Minds Influence Financial Decisions
Understanding Mental Accounting How Our Minds…
Understanding Mental Accounting How Our Minds Influence Financial Decisions
Imagine receiving an unexpected tax refund of $1,000. What would you do with the money? Many of us might instinctively consider this windfall as "bonus" money, mentally separating it from our regular income. This tendency to compartmentalize our finances is known as "mental accounting," and it can significantly impact our financial decisions.