Psychology of Money
Thriving After the Recession
Thursday, July 23rd, 2009
While a lot of people are still deeply impacted by the recession, a number of post-recession articles are starting to emerge, including one from US News & World Report that suggested 10 ways to “thrive” after the recession. It described the new “evolved consumer” who “shops with more discipline and focuses on buying products with ... [Read more]
No Comments » Don’t Touch, Don’t Buy
Thursday, April 9th, 2009
A recent Time magazine article summarized the latest findings from the increasingly sophisticated science of retailing. Researchers have found that touching a product in a store increases a shopper’s sense of ownership (the “endowment effect”), and that increases the likelihood that he or she will buy the product. One retailer that maximizes this approach to ... [Read more]
Of Calories and Cash
Monday, February 9th, 2009
There are a number of parallels between the worlds of nutrition and finance. On the negative side, people tend to describe a budget in the same terms they use to describe a diet – it’s something one goes on, as in, “Poor Brian, he’s on a budget.” However, as was pointed out in a New ... [Read more]
Irrational Money Moves
Monday, December 22nd, 2008
Some of the most interesting (and odd!) research about money comes from behavioral economists and psychologists. As noted in a recent Economist article, one study found that diners tend to spend more in a restaurant named “Cafe 97″ than one named “Cafe 17.” Another study looked the behavior of people who carry a balance on ... [Read more]
Deals That Delight
Wednesday, December 10th, 2008
One upside to a down economy is that lots of products are on deep discount before Christmas. But which deals will truly satisfy? According to a recent Wall Street Journal article, behavioral economists and psychologists have found that products that enrich your relationship with friends or family members rate the highest on the satisfaction scale. ... [Read more]
Penny Wise and Artichoke Foolish
Tuesday, November 25th, 2008
Like many of us, a grocery shopper named Jill is paying more attention to the cost of food these days. So, as described in a New York Times article, when one store’s price on cauliflower seemed too high, she went to another store, and then another. Finally, she found a good price, only to discover ... [Read more]
Learning From Marketers’ Playbooks
Friday, October 24th, 2008
Some of the best insights about shopping smart come from marketers. The trick is to learn their strategies for separating us from our money, and then play defense. That was the focus of a great post on the Get Rich Slowly blog, which reviewed the book, “Why We Buy.” For example, retailers do what they ... [Read more]
Why We Feel So Bad
Wednesday, October 8th, 2008
According to a CNN/Opinion Research Corp. poll, nearly 60 percent of Americans believe a depression is “somewhat likely” (38 percent) or “very likely” (21 percent). However, the CNNMoney.com article that reported on the findings noted that economists “generally don’t believe another depression is likely.” If “irrational exuberance” helped drive the market up, “loss aversion” may ... [Read more]
Name Your Price
Wednesday, March 26th, 2008
Haggling has long been an assumed part of the home- and car-buying experience. But in a down economy more and more retailers, including Best Buy and Home Depot, are going along when people ask for a better price. And not just on big-ticket items. One clothing store shopper profiled in a New York Times article ... [Read more]
Raising Money-Smart Kids
Wednesday, March 12th, 2008
A recent article in the Wall Street Journal had some good ideas for helping kids cultivate wise money management habits. Whenever your son or daughter tells you about something they desperately want, add it to a written wish list. A few days or weeks later go over the list to see what they’d still like ... [Read more]
