Money in Mind: Unpacking Mental Accountings Role in Financial Choices

Title

Money in Mind: Unpacking Mental Accountings Role in Financial Choices

Creator

Avanesh, Neetha Mary; Devi, Usha N.

Description

This study investigates the impact of mental accounting on budgeting, spending, and saving habits among individuals in Bengaluru, India. The mental accounting concept was introduced by the economist Richard Thaler. It gained attention in recent years due to its relevance in behavioral economics. For the present study, Bengaluru was chosen as the locale of the study due to its unique socioeconomic characteristics. Four hundred respondents from various sectors participated in semi-structured interviews. These respondents belong to the age group 25-60 with varying income levels. The findings conveyed that the respondents gave first priority to repaying smaller debts though long-term debts with higher interest rates were financially pressing. Therefore, it has become a need of the hour that financial education should be provided to individuals so that they can manage their finances effectively. The outcome of the present study provides valuable insights for designing educational programs that promote healthier financial habits among individuals. Copyright 2026 by Nova Science Publishers, Inc.

Source

Behavioral Finance: Strategies for Informed Decision-Making;pp.109-122

Date

01-01-2026

Publisher

Nova Science Publishers, Inc.

Subject

behavioral economics; economic resilience; financial choices; financial education; mental accounting; saving habits

Coverage

Avanesh N.M., School of Business and Management, Christ University, Bengaluru, India; Devi U.N., Vivekananda Degree College, Bengaluru, India

Rights

Restricted Access; Hardcopy may be available in the library

Relation

ISBN: 979-890134017-2; 979-889530956-8;

Format

online

Language

English

Type

Book chapter

Identifier

https://www.scopus.com/pages/publications/105035816395?origin=resultslist