The Psychology of Saving Money

You’re not as rational with money as you think. You’d drive 10 minutes to save $10 on a

$45 clock radio, right? But you wouldn't make that same drive to save $10 on a

$495 TV. Standard economics calls this irrational. It's the same ten bucks!

But behavioral economics gets it. We aren't perfectly logical robots; we're humans who

run on mental shortcuts. It’s not about the money you save; it's about the thrill of the deal.

Saving 22% feels like a massive win, while saving 2% feels like nothing. That feeling is

called transaction utility. Your brain isn't broken; it's just predictably human.