Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Your Brain Treats Money as a Mental Account
Episode 97 of Behavioral Economics with Fexingo explores mental accounting — the cognitive shortcut that makes us treat $50 found on the street differently from $50 earned. Lucas and Luna break down Richard Thaler's classic framework, using the example of a $20 theater ticket lost versus $20 cash lost, to show how we compartmentalize money into mental buckets. They discuss how this leads to irrational spending, why people overspend on vacations but scrimp on groceries, and how financial advisors can use mental accounting to help clients save. The episode also touches on the endowment…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.