Citation:

Andre Febrian, Khristina Yunita, Sari Rusmita. "Mental Accounting and Heuristic Behavior of Accounting Students in Balancing Expenditures for Cigarettes and Savings" International Research Journal of Economics and Management Studies, Vol. 3, No. 7, pp. 330-334, 2024.

Abstract:

This research aims to analyze the mental accounting and heuristic behavior of accounting students in balancing spending on cigarettes and saving. Mental accounting refers to the way individuals categorize and treat their money differently based on certain mental categories, while heuristics are rules of thumb or experience-based approaches used to make quick decisions. This study used a qualitative approach with an interview method with 5 accounting students at the Tanjungpura University accounting study program who were active smokers. The research results show that mental accounting and heuristics are able to influence students' financial decisions in balancing spending on cigarettes and allocating savings according to the pocket money they have.

References:

[1] Thaler, R. H. (1999). Mental accounting matters. Journal of Behavioral Decision Making, 12(3), 183-206.
[2] Kahneman, D., & Tversky, A. (1974). Judgment under uncertainty: Heuristics and biases. Science, 185(4157), 1124-1131.
[3] Shefrin, H. M., & Thaler, R. H. (1988). The behavioral life-cycle hypothesis. Economic Inquiry, 26(4), 609-643.

Keywords:

Mental Accounting, Heuristic, Expenditure, Cigarettes, Saving.