Mental Accounts or why some people find it hard to save

[bssc]

I found this an interesting discussion of how people keep track of their mental purchases and spend their money. It answers my question of why certain family members, when getting a windfall went to Disneyland rather than pay their medical bills.

"Someone gives you money for your birthday and they don't say, 'pay your electric bill,' but money is money and completely fungible, and if you are behind on your electric bill, you should definitely spend your money on that," she added. "But there is a reluctance to do that."

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