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Perspectives on mental accounting: An exploration of budgeting and investing
Author(s) -
Zhang C. Yiwei,
Sussman Abigail B.
Publication year - 2018
Publication title -
financial planning review
Language(s) - English
Resource type - Journals
ISSN - 2573-8615
DOI - 10.1002/cfp2.1011
Subject(s) - categorization , mental accounting , context (archaeology) , accounting , process (computing) , work (physics) , investment (military) , business , mental model , psychology , political science , finance , computer science , engineering , politics , geography , mechanical engineering , artificial intelligence , law , operating system , cognitive science , archaeology
This article provides an overview of recent advances in the literature on mental accounting within the context of consumer financial decision‐making. We first discuss the categorization process that underlies mental accounting and the methods people use to categorize funds. We then highlight some of the notable work that examines how mental accounting influences budgeting, spending, and investment decisions. The article concludes by proposing an agenda for future research, focusing on current gaps in our knowledge and promising areas to explore.