Mental accounting can create financial blind spots, such as when an individual carries high-interest credit card debt while simultaneously maintaining a separate emergency fund, resulting in higher interest payments than if the funds were consolidated.

Authors

• Person: Not available Organization: Verified Investing
  Behavioral Economics: Everyday Biases That Shape Money Choices

Sources

• Behavioral Economics: Everyday Biases That Shape Money Choices verifiedinvesting.com Verified Investing via serper

Referenced by nodes (2)

• credit card debt concept
• emergency fund concept