Study: jealousy can drive purchases
Do you buy things because you can really afford them, or because you see people poorer than you have bought those things? We are influenced by how others spend, and a recent paper documented how social status can affect our spending. From the press release at the Journal of Consumer Research:

How much does your girlfriend cost?
If women didn't exist, all the money in the world would have no meaning--Aristotle Onassis Friday night was ending, and we asked our friend what we owed. He replied, "Don't worry about it guys--it's so little that it's on me. This is nothing compared to a normal Friday night when I ...

Gifts for economists, 2008
[Update: Welcome Freakonomics readers!] [Also see: Gifts for economists, 2009] Gift giving time is here, and I bet you know someone that loves economics. Maybe it's your friend that tells you how to invest. Or your professor that lectures you about why free trade is good...What kind of gifts would such people ...

Why do people make stupid money decisions?
Reader question: Presh, random question for you: why do people make stupid money decisions? Any thoughts would be appreciated. My answer: This is an interesting question. The other day I saw someone pay more for food because he ordered ala carte instead of getting the combo. I certainly scratched my head after that ...

The game theory of buying clothes, and why money tips are often short-lived
I discovered a money tip before I moved to college. I was living in Illinois and it was a chilly September. But I actually needed more summer clothes because I was moving to warmer California weather at Stanford. Since I was shopping out of season, most what I wanted was ...

The 3 biggest obstacles to getting rich
Why am I not happy with my finances? I hear this question from many people. Some people blame not enough education, and schools are responding by increasing financial education classes. But will more information help? I used to think so, but here is a story that really got me thinking. My friend ...

When comparison shopping, trust the math, not your eyes
Recently, my grocery store began stocking a new, "family-size" package for a cereal that I enjoy. It caught my attention because the family-size box is a lot larger than the regular one. In fact, the family-size box looked almost double the size: In a rush, I chose the family-size box and ...

Why you should track your spending, and 3 slick ways to do it
A fool and his money are soon parted. When people ask me how they can improve their spending habits, I start by asking them some questions. How much did you spend on gifts last year? What percentage of your income do you spend on gas? Most people give some answers, but ...

5 ways your library could help you spend less
People tell me they don't like the library because it doesn't have the latest books. And I completely agree. If you strongly prefer new books, then buying them is the only solution. Plus, you get to read the book when it's in the news and people are talking about it. ...

Credit cards, debit cards, and cash–which way of paying is best?
At a bar, I once saw three people at a table receive separate checks, and amazingly, each of them paid in a different method. The first person threw down cash, the second a debit card, and the third a credit card. It got me thinking about why people pay in ...