________ is the tendency to treat money differently depending on how it is acquired and the psychological category to which it is attached.

Question

Quizplus · Accepted Answer

Mental accounting refers to the tendency of individuals to treat money differently depending on how it is acquired and the psychological category to which it is attached. For example, people may spend their bonus or inheritance money differently than their regular income, or they may allocate money specifically for certain purposes, such as vacation or savings, and not use it for anything else. Mental accounting can lead to irrational financial decisions and can be a hindrance to overall financial well-being.

________ Is the Tendency to Treat Money Differently Depending on How