People Deal with Money Daily.
People's Behavior and Decisions about Money often Violate Economic Rationally
Behavioral Design for Financial Services
Nonetheless, lots of real people do some of these things and for very good reasons.
Have, at the same time, 500$ debt (loan) and 7000$ in savings.
It is (economically) Irrational to:
Gladly pay 10$ for a bottled water in a restaurant and spend 20 minutes looking for a 20¢ coupon at the local grocery.
Pay very high interest rates for seemingly useless purchases.
Forgo a 10$ discount and be outraged by an 8$ surcharge.
Get a loan of 400$ at 10% interest, then put 400$ in a savings account with 4% interest.
Enjoy Spending Money and Having Financial Security.
Indulge in Spur of the Moment Purchases and Avoid the Regret of Overspending.
People Have Apparently Conflicting Goals Regarding Money:
When it comes to money
people want to eat the cake and still have it.
Good Financial services should be able to accommodate these (apparently) conflicting goals.