Behavioural Economics Primer: Mental accounting

This article provides an overview of the behavioural economics concept of mental accounting, a natural inclination to organise, evaluate and keep track of our finances.

Behavioural Economics Primer: Mental accounting

Crawford Hollingworth The Behavioural Architects

Behavioural economics

This article is part of Warc's Behavioural Economics Primer.

The concept of mental accounting, first identified by the economist Richard Thaler, shows how we have a natural inclination to organise, evaluate and keep track of our finances. We categorise, compartmentalise and treat money differently depending on where it comes from, where it is kept, or how it is spent.

In its simplest form, mental accounting is about considering how people think about money by trying to understand the psychology behind spending and saving and examining...

Not a subscriber?

Schedule your live demo with our team today

WARC helps you to plan, create and deliver more effective marketing

  • Prove your case and back-up your idea

  • Get expert guidance on strategic challenges

  • Tackle current and emerging marketing themes

We’re long-term subscribers to WARC and it’s a tool we use extensively. We use it to source case studies and best practice for the purposes of internal training, as well as for putting persuasive cases to clients. In compiling a recent case for long-term, sustained investment in brand, we were able to support key marketing principles with numerous case studies sourced from WARC. It helped bring what could have been a relatively dry deck to life with recognisable brand successes from across a broad number of categories. It’s incredibly efficient to have such a wealth of insight in one place.

Insights Team
Bray Leino

You’re in good company

We work with 80% of Forbes' most valuable brands* and 80% of the world's top top-of-the-class agencies.

* Top 10 brands