13 - Avoid Taking Money for Granted - Set Financial Boundaries

In the episode "Avoid Taking Money for Granted: Set Financial Boundaries", we tackle the intriguing psychology behind our tendency to take others' money for granted and the impacts of this behavior on our financial health. We analyze studies and offer a deep dive into factors contributing to such behaviors, such as a lack of accountability, sense of entitlement, or deficient financial literacy. We provide strategies on setting effective financial boundaries to foster more responsible money management.

#personalfinance #financialliteracy #moneymanagement #financialboundaries #financialhealth #behavioraleconomics #savingmoney #budgeting #financialresponsibility #accountability #entitlement #financialindependence

References for Further Reading:

Cake & Arrow. (2023). Insurance & Personal Finance Toward a new understanding of financial literacy. Cake & Arrow. https://go.cakeandarrow.com/insurance-and-personal-finance

Henderson, P. W., & Peterson, R. A. (1992). Mental accounting and categorization. Organizational Behavior and Human Decision Processes, 51(1), 92–117. https://doi.org/10.1016/0749-5978(92)90006-S

Hensley, B. J. (2015). Enhancing Links between Research and Practice to Improve Consumer Financial Education and Well-Being. Journal of Financial Counseling and Planning, 26(1), 94–101. https://doi.org/10.1891/1052-3073.26.1.94

Juneja, P. (n.d.). Mental Accounting. Retrieved October 7, 2023, from https://www.managementstudyguide.com/mental-accounting.htm

Lammers, J., Galinsky, A. D., Gordijn, E. H., & Otten, S. (2008). Illegitimacy Moderates the Effects of Power on Approach. Psychological Science, 19(6), 558–564. https://doi.org/10.1111/j.1467-9280.2008.02123.x

Lin, J. T., Bumcrot, C., Mottola, G., Valdes, O., Ganem, R., Kieffer, C., Walsh, G., & Lusardi, A. (2022). Financial Capability in the United States: Highlights from the FINRA Foundation National Financial Capability Study (5th Edition). FINRA Investor Education Foundation. www.FINRAFoundation.org/NFCSReport2021

Muehlbacher, S., & Kirchler, E. (2019). Individual Differences in Mental Accounting. Frontiers in Psychology, 10, 2866. https://doi.org/10.3389/fpsyg.2019.02866

MyMoney.gov. (2023). My Money Five | MyMoney.gov. https://www.mymoney.gov/mymoneyfive

Scheresberg, C. de B., & Lusardi, A. (2014). Financial Capability Among Young Adults. 38.

Soman, D. (2001). The mental accounting of sunk time costs: Why time is not like money. Journal of Behavioral Decision Making, 14(3), 169–185. https://doi.org/10.1002/bdm.370

Soman, D., Cheema, A., & Chan, E. Y. (2012). Understanding consumer psychology to avoid abuse of credit cards. In Transformative consumer research for personal and collective well-being. (pp. 423–443). Routledge/Taylor & Francis Group. https://doi.org/10.4324/9780203813256

U.S. Department of the Treasury. (2023, August 28). Financial Literacy and Education Commission. U.S. Department of the Treasury. https://home.treasury.gov/policy-issues/consumer-policy/financial-literacy-and-education-commission

Whillans, A. V., Dunn, E. W., Smeets, P., Bekkers, R., & Norton, M. I. (2017). Buying time promotes happiness. Proceedings of the National Academy of Sciences, 114(32), 8523–8527. https://doi.org/10.1073/pnas.1706541114