Contrary to recommendations by consumer credit counsellors, most consumers don't keep written track of their purchases throughout the day and instead rely on their memory to account for recent spending. Which term refers to this memory accounting?
A) informal budgeting
B) ad-hoc budgeting
C) cognitive budgeting
D) mental budgeting

Question

Quizplus · Accepted Answer

The term that refers to relying on memory to account for recent spending is "mental budgeting." This type of budgeting can be unreliable, as it can be difficult to remember every purchase throughout the day. It is recommended that consumers keep a written record of their expenses to ensure accurate tracking and budgeting.

Contrary to Recommendations by Consumer Credit Counsellors, Most Consumers Don't