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How to Pinch Pennies in the Right Places

We tend to focus on the percentage rather than the amount we save, and fall prey to a mental illusion. After all, when your shopping is done, it is dollars — not percentages — that will be in your bank account.


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Recent work in neuroeconomics suggests this link between dollars and senses is not just metaphorical. The economists Antonio Rangel of the California Institute of Technology and John A. Clithero of Pomona College say similar factors are at play in both cases.

So... Focus on actual dollars saved, not percentage off something is. 

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