Words / M / Business

mental accounting

noun/ˈmentl əˈkaʊntɪŋ/

C2CEFR level
70/100Rarity: rare
TechnicalRegister

The habit of treating money differently depending on its source or intended use rather than as fungible.

Mental accounting lets people splurge a tax rebate while refusing to touch their salary for the same purchase.

Topic: Economics in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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