To select English subtitles, click on the Settings icon at the bottom right-hand corner of the screen, click on the option labeled "subtitles/CC, and choose English.

Video Description

Type: KIHASA RESEARCH ON

Topic: A Quick Guide to Mental Accounting

Based on Research Monograph: Cash Transfer Programs and Behavioral Change: An Analysis of Policy Effectiveness and Implications

Transcript

Have you ever heard of “mental accounting”? Also called ‘psychological accounting,’ it’s a concept from behavioral economics. It refers to people’s tendency to categorize and treat money differently depending on its source or intended use. In other words, rather than viewing all money the same, people assign it into different “mental accounts,” which then influence how they spend it.

This behavior is especially evident with child benefits―cash transfers specifically designated for children. Research shows that households receiving child benefits tend to spend them primarily on their children―for example, on clothing, cultural and leisure activities, books, and stationery. This suggests that various cash support policies can help steer household spending in a positive direction.

What other government cash support programs make use of mental accounting? And are these transfers achieving their intended goals?

For more details, check out the full research monograph from KIHASA!