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Why do we buy the things we buy? If you assume people are rational, it’s easy to answer such a question. If we want or need something, we look for the item and buy it when we find the best price.
Unfortunately, people are not as rational as we might think. As the emerging field of behavioral economics has shown time and again, perceptions and passions can cause human beings to make some awfully funny money moves.
Watch this video from CrashCourse to learn how certain factors — such as lack of information — can strongly influence our buying decisions, even if we aren’t always aware of it.
What are some of your biggest money mistakes? Share them by commenting below or on our Facebook page.