Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
The Hidden Cost of Mental Accounting in Your Budget
In this episode, Lucas and Luna dig into mental accounting—the psychological quirk that makes us treat money differently depending on where it comes from or what jar we put it in. They anchor the conversation with a real-world example: how a $1,000 tax refund often gets spent on a splurge, while the same amount earned from a paycheck gets saved. They explore why we create 'fun money' and 'emergency funds' in our heads, and how that can lead to irrational spending. You'll learn about Richard Thaler's classic research, the 'house money' effect in casinos…
The skinny
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