Mental Accounting: How Math Mind Games Bust Our Budgets

Learn how to benefit from the psychological phenomenon that makes us think of our money as divided into separate accounts.

A guy walks up to a high roller in a casino and asks: "Could you help me out? My wife is sick and needs medicine that I can't afford. Just two hundred bucks. Please. I'm begging you."

The high roller says, "That's some sad story, pardner. But how do I know you're not going to gamble with that two hundred dollars?"

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Bob Frick
Senior Editor, Kiplinger's Personal Finance