Mental Accounting: Definition & Example


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question 1 of 3

What is mental accounting?

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1. How can you avoid mental accounting?

2. Who introduced the concept of mental accounting?

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About This Quiz & Worksheet

This brief quiz and worksheet will test your understanding of mental accounting bias. You'll review topics like spending categories and risky investments as they relate to mental accounting bias. You can use your mobile device to take this quiz on the go.

Quiz & Worksheet Goals

Verify your knowledge of the following with this assessment:

  • Definition of mental accounting and understanding how to avoid it
  • Economist who introduced the concept of mental accounting
  • Spending categories according to mental math
  • Category of money that can be put towards risky investments, according to mental accounting

Skills Practiced

  • Interpreting information - verify that you can read information regarding mental accounting and interpret it correctly
  • Critical thinking - apply relevant concepts to examine information about a category of money that can be used on risky investments in a different light
  • Information recall - access the knowledge you've gained regarding spending categories according to mental math

Additional Learning

To continue your studies of this topic, you can review the related lesson titled Mental Accounting: Definition & Example. Here's the type of information you'll find in this lesson:

  • Subconsciously partitioning money
  • Placing value on money
  • Making illogical decisions
  • Lost-money account