Abbey has come up with several hacks to avoid falling into some of the traps of mental accounting. One of these hacks is to find ways to reclassify unexpected expenses. Research on price partition shows that when you break down the price in this way, people also tend to recall a lower total price.
Have you had a recent surprise expense? You're not alone. More than half of American households report facing an unplanned financial shock in the last year. This week, in the second part of our new "Money 2.0" series, psychologist Abigail Sussman points out our blindspots around money, and how we can be smarter about spending and saving.
If you like this show, be sure to listen to last week's episode on how our unconscious attitudes towards money influence how we manage our finances.
Also, check out our new podcast, My Unsung Hero! And if you'd like to support our work, you can do so at support.hiddenbrain.org.