So Money with Farnoosh Torabi 1867: Your Brain on Money: The Science Behind Your Last Impulse Purchase
Aug 18, 2025
In this enlightening discussion, John Dinsmore, a Wright State University professor and author of "The Marketing of Debt: How They Get You," delves into the surprising psychology of spending. He shares how our brains underestimate the pain of future debt and how credit card companies cleverly market to our ego. The conversation also touches on the rise of 'quiet luxury' in fashion and its social implications. Dinsmore even reveals that merely touching cash can alter our generosity—fascinating insights into the relationship between money and our minds!
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Future Optimism Distorts Debt Choices
- People are overly optimistic about future finances and underestimate how hard debt will be to manage.
- This optimism makes long-term credit commitments like loans especially risky for many people.
Delay Major Debt Decisions For Clarity
- Avoid asking an 18-year-old to take large, decades-long financial risks like major student loans without guidance.
- Get better information and be in a clear decision state before committing to long-term debt.
Card Branding Drives Public Overspending
- Status-branded credit cards prompt more public spending among lower-income users who want approval.
- Marketers exploit this by giving high-fee cards prestige cues that encourage visible spending.
