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Mental depletion complicates financial decisions for the poor | PBS NewsHour

See on Scoop.itBounded Rationality and Beyond

Why does it become more difficult to make good financial decisions when you’re poor?

Last month, behavioral economist Dan Ariely and his team at the Center for Advanced Hindsight opened up the Common Cents Lab. Its goal is twofold: to examine how those living in poverty misspend their money and to help the poor make better financial decisions. I spoke with Ariely about the center, our not-so-rational spending and why making good financial decisions becomes even more difficult when you’re poor. For more on the topic, read the second half of Making Sen$e’s interview with Ariely here. The following conversation has been edited and condensed for clarity and length.

See on pbs.org



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