Why do Brazilians pay for everything? After decades of high inflation, tight incomes and difficulty in saving, installments expanded access to consumption in Brazil and led many consumers to prioritize the value of the installment rather than the total purchase price. According to behavioral economics, splitting the payment reduces the perception of spending. As a result, the brain tends to give more weight to the value of the installment than to the total cost of the purchase, influencing the consumer's decision. Despite being a useful tool, installments require attention. Accumulating installments can compromise the budget and, in some cases, interest increases the final amount even further. Therefore, the recommendation is to consider the total cost of the purchase before closing the deal. Every week, g1 Explains simplifies the economy, the financial market and financial education, showing the impact of all of this on your pocket.
Why do Brazilians pay for everything? Understand how the brain influences purchases and avoid pitfalls
Why do Brazilians pay for everything? After decades of high inflation, tight incomes and difficulty in saving, installments expanded access to consumption in Brazil and led many consumers to prioritize the value of the installment rather...
As a result, the brain tends to give more weight to the value of the installment than to the total cost of the purchase, influencing the consumer's decision. Despite being a useful tool, installments require attention.
- Accumulating installments can compromise the budget and, in some cases, interest increases the final amount even further.
- Therefore, the recommendation is to consider the total cost of the purchase before closing the deal.
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