Just Ask Jenna Looks At Everyday Spending

by Jenna C, ’26

Dear Jenna, 

I spend money on small things throughout the week because each purchase feels minor. By the end of the month, though, I am surprised by how much I spent. Why does this happen?

From, 

Surprised by the Total

Dear Surprised by the Total,

Spending a few dollars here and there during the week feels harmless. A coffee on the way to school, a snack between classes, or a quick online order does not seem like it should make much of a difference. Each purchase feels small on its own, so it is easy not to think twice about it. The surprise usually comes later, when everything adds up at the end of the month. 

In economics, this relates to mental accounting. Essentially, mental accounting is the way people separate their money into different categories in their heads, instead of seeing it as one total. When you treat each small purchase as its own thing, it feels less serious than spending a large amount all at once. The problem is that your bank account does not see those purchases separately. It only sees the total. 

Noticing this pattern does not mean you have to cut out every small treat. It just means being more aware of how they happen and how quickly they add up. Sometimes the biggest difference comes from paying attention, not from giving things up. 

Best of luck!

Jenna

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