Ever wonder why “extra” money, like a tax refund or birthday cash, feels easier to spend than money from your paycheck? In this episode of Wisdom in Wealth, RFG Chief Behavioral Officer Brendan Frazier unpacks mental accounting, the invisible system in your brain that shapes how you treat money based on where it comes from or what it’s for.
Drawing on insights from Nobel laureate Richard Thaler, Brendan explains how these mental categories can quietly drain your wealth or become powerful tools for building better money habits. You’ll hear relatable examples, from retirees who spend dividends but never touch their principal, to how labeling your savings can make your goals easier to achieve.
By the end of this episode, you’ll see how to reframe your money mindset and use mental accounting to create smarter, more intentional spending, saving, and investing habits.
What You’ll Discover:
- Why humans typically treat “found money” differently than earned income.
- How mental accounting can work against—or for—you.
- Simple ways to turn this bias into a tool for better financial choices.
Click play to watch the full episode or explore our library of Wisdom in Wealth episodes.
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