Price falls mean you can save money, right? Yet a JPMorgan Chase paper - reported in the New York Times - has found that when the petrol price falls, people in the United States choose to buy more or higher-priced fuel, rather than save the difference. There’s evidence for this kind of "mental accounting" in other studies too, the report notes.
Credit where due
If you're trying to borrow money, the loan terms can be challenging. Yet credit companies TransUnion and FICO say creditworthiness scores can be improved by including “new” types of data, perhaps even information from social media sites like Facebook. This could help make loans cheaper, an FT (paywalled) article says.
People often aren’t very good at predicting the future, and wrong decisions can damage lives financially and in other ways. A 2015 study shows we tend to overestimate the benefit from marriage, or the emotional hit of losing a job or becoming disabled. Fortunately, it notes, we may also underestimate our future ability to adapt to a new situation.