Mental accounting is the behavioral tendency to separate money into various subjective criteria, which leads people to treat identical amounts of money differently based on the source. For example, a person is more likely to use a $5,000 regular paycheck in a disciplined manner to pay down debt or invest, but may spend a $5,000 bonus recklessly because they regard the two sources of money differently.

Authors

• Person: Not available Organization: ATB Wealth
  5 common behavioural investing biases - ATB Financial

Sources

• 5 common behavioural investing biases - ATB Financial www.atb.com ATB Wealth via serper

Referenced by nodes (2)

• investment concept
• debt concept