Many people make what seem like irrational decisions around money. In this Psychology Today article, psychologist Alain Samson explains how “mental accounting” makes us more likely to spend money we find in the street on something frivolous, and why the pain of paying means we’re willing to spend more on a credit card than with cash.
Is the tradition of buying rounds of drinks falling out of favour with pub-goers? A survey found 81% of people would rather ditch the shout and buy their own – but social pressures mean they often keep schtum. And it’s hurting their wallets: 64% said they spent more when in a round, with many having to buy more expensive drinks for their friends.
Summer holidays may now be a distant dream – but if you’re looking ahead to next year, listen up. We’re much more likely to buy a flight online if we see a pop-up telling us that others have already booked, researchers have found. Following the herd in this way is known as “social proofing” – and it could be costing us, says behavioural economist Joe Gladstone.