Optimal Finance Daily · Wednesday, July 29, 2026
Ornelia Grosz argues that even intelligent individuals make poor spending choices because they don't value all money equally. Grosz highlights how people are often more upset by unexpected bank fees than by a similar loss from gambling, despite the monetary value being the same.
“Why is it that sometimes budgets don't work? I think it's because many of us set them up and never look at them again.”
“I bet most people would be more upset with the bank charging you $100 in fees versus you losing $100 gambling. Why? Is it because one loss was expected? The other? Mr. Benjamin should have the same value and significance to you.”
“Saving $25 should have the same value regardless of the size of the transaction.”