The psychologist Laurie Santos (Yale University) explains the phenomenon of mental accounting: why we don't always assume that money is fungible. She explores why we set up different accounts for different purchases and how we can use our mental accounting biases to be happier about our financial decisions.

Concepts

behavior, economics, personal finance

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Additional Tags

dick thaler, fungible, khan academy, consumer decision-making process, thinking

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Classroom Considerations

• Knovation Readability Score: 3 (1 low difficulty, 5 high difficulty)
• The intended use for this resource is Instructional