Dollars and Sense: How We Misthink Money and How To Spend Smarter

In this engaging guide to decision-making about money, author and behavioral economist Ariely (James B. Duke Professor of Psychology & Behavioral Economics, Duke Univ.; Predictably Irrational) and writer and comedian Kreisler (Get Rich Cheating) lay bare the ways monetary value is misunderstood and incorrectly assessed, noting the tendency to "overemphasize irrelevant factors, forget about important ones, and allow insignificant value cues to lead us astray." Through stories, scenarios, and descriptions of experiments conducted by Ariely and others, the authors show the mental "forces at play" in financial psychology, such as why prepaying for a honeymoon may promise a more joyful experience. They also highlight how companies and marketers use these same strategies to induce spending and consider how to design "environments to turn our mental shortcomings into tools that work in the service of our financial success." As the work comes to a close, its attention shifts toward the future, considering suggestions for retirement plans and HR departments and how to "start a conversation" about the "duty of saving," offering a good first step in that direction.