Abbie susman is a psychologist who studies why people and organizations fail to spend within their means. One driver of exploding budgets has to do with what economists call narrow bracketing. Our choi es about how and where we spend money are shaped by where we got the money, the size of the expense and the context. We may rationally know that a dollar is a dollar but emotionally it feels different.
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.