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Money Talk

Ep. 011: “Why Do We Spend Money Irrationally?”

January 30, 2018

2 min read

Why do we spend money? Here’s one reason: It feels good.

It’s a matter of science. A swipe of a credit card, the click of that button. To your brain, it can feel like a hug. Until you look at your bank balance and wonder where all your money went. Then you feel like crying.

Face it, when it comes to money and spending, we’re not rational beings.

We don’t always buy milk at the store where it’s cheapest. Sometimes we buy it at the store that’s closest to our home or where’s nearest to the pet store where they have the cutest dogs in the window.

There are plenty of ways that companies seek to cash in on our emotional and irrational spending. Think flash sales, markdowns, one-click shopping, and impulse add-ons. It’s just so easy to spend.

But then why does it hurt so much to save? Isn’t saving money good for us? 

On this week’s episode of Teach Me How To Money, we talk to Jeff Kreisler, co-author of the hot new behavioral finance book “Dollars and Sense.”

We discuss  the “pain of paying” and how companies exploit it to keep us spending money on things we don’t need.

Got a question you’d like us to answer on the show? Drop us a line at [email protected]. We’ll do our best to get to all of them.

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This podcast should not be copied, distributed, published, or reproduced in full or in part. The information contained in this podcast does not constitute a recommendation from Stash to the listener. Neither Stash, nor any of its officers, directors, or employees makes any representation or warranty as to the accuracy or completeness of the statements, or any of the information contained in this podcast, and any liability therefore, including in respect of direct, indirect, or consequential loss or damage, is expressly disclaimed. The views expressed in this podcast are not necessarily those of Stash. And Stash is not providing any financial, economic, legal, accounting, or tax advice, or recommendations in this podcast.

In addition, the receipt of this podcast by any listener is not to be taken as constituting the giving of advice by Stash to the listener, nor to constitute such a person a client of Stash.

By Lindsay Goldwert
Lindsay Goldwert is Senior Editor at Stash.

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