Why Do We Spend Money?

Dan Ariely, the James B. Duke Professor of Psychology and Behavioral Economics at Duke University, and the founder of the Center for Advanced Hindsight, joins us to talk about his new book, Dollars and Sense: How We Misthink Money and How to Spend Smarter. He and co-author Jeff Kreisler look at how emotions influence the way we spend our money, from the appeal of pain-free spending with credit cards to the seductive power of holiday sales. They show how these decisions can hurt our bottom lines, and offer tips for removing emotion from our financial choices.