Part 3/7:
Innovative fintech solutions have emerged to accommodate these behavioral tendencies. Many financial apps now allow users to create separate "savings pots," enabling individuals to round up their card transactions to the nearest pound and redirect the excess into savings. This approach harnesses the nuance of mental accounting, aligning with human instincts rather than static economic models that disregard psychological influences.
The Perception of Price: More Than Just a Number
A fascinating aspect that emerges in the discussion of money perception is the idea that "price is a feeling." While economists rigidly define price as a numerical value, consumers evaluate price based on comparative feelings. Something may feel expensive or cheap depending entirely on context or framing.