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How Mental Accounting Shapes Our Financial Choices

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Abstract

This article explores the phenomenon of mental accounting and how it affects a person’s financial choices.

Suggested Citation

  • Andrea Caceres-Santamaria, 2026. "How Mental Accounting Shapes Our Financial Choices," Page One Economics Newsletter, Federal Reserve Bank of St. Louis, April.
    • Handle: RePEc:fip:fedlpo:103010
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    References listed on IDEAS

    as
    1. Heath, Chip & Soll, Jack B, 1996. "Mental Budgeting and Consumer Decisions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 23(1), pages 40-52, June.
    2. Broekhoff, Marie-Claire & van der Cruijsen, Carin, 2024. "Paying in a blink of an eye: it hurts less, but you spend more," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 110-133.
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