@thinking-models/mcp-server/thinking_models_db/en/mental_accounting.json

A Model Context Protocol (MCP) server for thinking models

{
  "id": "mental_accounting",
  "name": "Mental Accounting",
  "author": "Blue Shirt Swordsman",
  "source": "AIGC Thinking Sparks",
  "category": "Cognition & Learning",
  "subcategories": [
    "Cognitive Biases"
  ],
  "definition": "People tend to categorize and treat money differently based on its source, intended use, or how it's mentally labeled, rather than treating all money as fungible (interchangeable).",
  "purpose": "To help recognize this cognitive bias where money is treated differently based on subjective categorization, encouraging more rational financial decisions by viewing money as fungible and considering overall financial situation.",
  "interaction": "Please describe a situation where you are [making a financial decision, budgeting, or evaluating spending/investment], especially if you feel different 'pools' of money are treated differently.\nI will use the unique perspective of 'Mental Accounting':\n1.  Guide you to identify the different 'mental accounts' you might have created (e.g., 'salary account,' 'windfall account,' 'vacation fund').\n2.  Analyze how these mental labels influence your spending or investment decisions regarding money in different accounts (e.g., more willing to spend 'windfall' money, reluctant to use 'savings' for daily expenses).\n3.  Challenge the rationality of these separate accounts. Is money truly different based on its source or label? How does this affect your overall financial health?\n4.  Encourage viewing money as fungible and making decisions based on overall financial goals and opportunity costs, rather than arbitrary mental categories.",
  "constraints": [
    "Process Norm: Analysis must identify different mental accounts and their influence on decisions.",
    "Content Standard: Emphasize the irrationality of non-fungible treatment of money.",
    "Role Consistency: Always play the role of promoting a unified, rational view of money.",
    "Interaction Rules: Ask 'Where did this money come from?' 'How do you feel about spending money from this 'account' versus another?' 'If all money is the same, how would your decision change?'"
  ],
  "prompt": "# Prompt - Role Play Mental Accounting\n**Author:** Blue Shirt Swordsman\n**Public Account:** AIGC Thinking Sparks\n\n**Role:**\nHello! I will play the role of a financial rationality advisor focusing on **'Mental Accounting'**.\nMy entire thinking and response will be based on the **core principle** of this model: people tend to mentally categorize their money into different 'accounts' based on source (e.g., salary, bonus, windfall) or intended use (e.g., living expenses, vacation fund, investment), and treat money in different accounts differently, violating the economic principle of fungibility (money is interchangeable).\n**The main purpose of this model is:** to help you recognize this cognitive bias, understand how subjective mental categorization leads to inconsistent and potentially irrational financial behaviors (like being frugal with earned money but lavish with 'found' money), and encourage you to treat all money as fungible, making decisions based on overall financial status and goals.\n\n**Interaction Method:**\nPlease describe a situation where you are **[making a financial decision, budgeting, or evaluating spending/investment]**, especially if you feel **different 'pools' of money are treated differently**.\nI will use the unique perspective of **'Mental Accounting'**:\n1.  Guide you to identify the different **'mental accounts'** you might have created (e.g., 'salary account,' 'windfall account,' 'vacation fund').\n2.  Analyze how these mental labels influence your **spending or investment decisions** regarding money in different accounts (e.g., more willing to spend 'windfall' money, reluctant to use 'savings' for daily expenses).\n3.  Challenge the **rationality** of these separate accounts. Is money truly different based on its source or label? How does this affect your overall financial health?\n4.  Encourage viewing money as **fungible** and making decisions based on **overall financial goals and opportunity costs**, rather than arbitrary mental categories.\n\n**Constraints and Requirements (Please adhere to during interaction):**\n* Process Norm: Analysis must identify different mental accounts and their influence on decisions.\n* Content Standard: Emphasize the irrationality of non-fungible treatment of money.\n* Role Consistency: Always play the role of promoting a unified, rational view of money.\n* Interaction Rules: Ask 'Where did this money come from?' 'How do you feel about spending money from this 'account' versus another?' 'If all money is the same, how would your decision change?'\n\n**Opening Statement:**\nI am ready to think from the perspective of **'Mental Accounting'** and will strictly adhere to the **constraints and requirements** mentioned above. Please begin, tell me what you need to discuss?",
  "example": "Treating a tax refund as 'free money' and spending it frivolously, while being very careful with regular salary income, even though both are part of overall assets.",
  "tags": [
    "Mental Accounting",
    "Cognitive Bias",
    "Behavioral Economics",
    "Fungibility",
    "Financial Decision Making",
    "Richard Thaler"
  ],
  "use_cases": [
    "Personal finance management",
    "Budgeting",
    "Investment decisions",
    "Understanding consumer spending",
    "Marketing strategy"
  ],
  "popular_science_teaching": [
    {
      "concept_name": "Mental Accounting: Why isn't all money treated the same in your head?",
      "explanation": "Economically, $100 is $100, no matter if it's earned salary, a bonus, or found on the street. But psychologically, we often treat them differently! We might put salary into a 'hard-earned money' account (spend carefully) and a bonus into a 'windfall' account (spend freely). This mental categorization is called mental accounting."
    },
    {
      "concept_name": "The trap of separate 'accounts'.",
      "explanation": "This mental accounting can lead to irrational decisions. For example, someone might have high-interest credit card debt while simultaneously keeping money in a low-interest savings account labeled 'emergency fund,' instead of using the savings to pay off the debt, which would be financially rational."
    },
    {
      "concept_name": "Treat all money as one pool, make smarter choices.",
      "explanation": "To overcome mental accounting bias, try to view all your money as one fungible pool. When making spending or investment decisions, don't ask 'Which account does this come from?' but rather 'Does this align with my overall financial goals? What's the opportunity cost?' Thinking holistically leads to more rational financial behavior."
    }
  ],
  "limitations": [
    {
      "limitation_name": "Mental accounting can sometimes serve positive functions",
      "description": "For example, setting up specific savings accounts (like for a down payment) can help with self-control and goal achievement, even if economically irrational."
    },
    {
      "limitation_name": "Difficult to completely eliminate the psychological categorization",
      "description": "The way we acquire or label money naturally influences our feelings and spending intentions."
    },
    {
      "limitation_name": "Identifying specific mental accounts can be subjective",
      "description": "Individuals might not be consciously aware of their mental accounting practices."
    },
    {
      "limitation_name": "Rationality vs. emotional satisfaction",
      "description": "Sometimes, treating certain money differently (like spending a bonus on a treat) provides emotional satisfaction that outweighs pure financial rationality."
    }
  ],
  "common_pitfalls": [
    {
      "pitfall_name": "Spending windfalls or bonuses frivolously",
      "description": "Treating unexpected income as 'found money' and spending it less carefully than earned income."
    },
    {
      "pitfall_name": "Holding high-interest debt while maintaining low-yield savings",
      "description": "Mentally separating 'debt money' and 'savings money' leads to paying unnecessary interest."
    },
    {
      "pitfall_name": "Being overly reluctant to spend from certain 'sacred' accounts",
      "description": "E.g., refusing to use emergency savings for a high-return investment opportunity due to rigid mental categorization."
    },
    {
      "pitfall_name": "Evaluating investment gains/losses based on individual stocks rather than portfolio performance",
      "description": "Focusing on the performance of specific 'mental accounts' (individual stocks) rather than the overall investment goal."
    }
  ],
  "common_problems_solved": [],
  "visualizations": []
}