World We Imagine Part Three
Day by Day Our mission is to highlight local efforts to better the community and move towards those goals, one small step at a time. Would you donate 49 cents a day to feed a starving child in Africa? Chances are, you would say yes. Researchers find that people are more likely to donate towards causes when the question is framed in a “pennies a day” format. Humans rely on a system called “mental accounting” to categorize the different transactions in their lives. This form of thinking has many effects including: People are more likely to spend money given to them if it is labeled as a “bonus” rather than a “rebate” People overspend when using credit cards because the money used does not have an instant effect People tend to gamble more after a win rather than a loss, even if the outcome will remain the same In the “pennies a day” example, because the cost is marginal enough to be ignored, people don’t label it as an expense. Day by Day takes this mindset and transforms it i...