Your friend spends money like water. When you learn that he is from a poverty-stricken background, you attribute his spending patterns to his earlier deprivation. You are likely to do this because of

Question

Quizplus · Accepted Answer

The hindsight bias refers to the tendency to believe, after learning an outcome, that one would have foreseen it. In this case, knowing your friend's background leads you to rationalize his spending behavior as a reaction to his past poverty, as if it were predictable or obvious.

Your Friend Spends Money Like Water