Tag

personal-finance

Explore 2 cognitive biases related to this topic.

Money Illusion

10 min read

Money illusion is the tendency to think in terms of nominal currency values rather than real purchasing power adjusted for inflation.

Cognitive Biases / Economic perception

/ Nominal thinking

Mental Accounting

10 min read

Mental accounting is the tendency to treat money differently depending on where it came from or how we label it, rather than viewing all funds as interchangeable.

Cognitive Biases / Financial framing

/ Psychological budgeting