The psychology of spending, debt and budgeting, with Abigail Sussman, PhD
4/8/202634 min
Buy now, pay later plans have skyrocketed in popularity in recent years, adding yet another variable to consider when making spending decisions. Abigail Sussman, PhD, discusses the psychological biases that influence how we spend, budget and borrow, including why splitting payments can make purchases feel more affordable, why we underestimate irregular expenses, and why many people carry debt even when they have savings. She also shares research-based strategies to help you make more deliberate choices and better manage your money.
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First 90 secondsSpeaker 10:00
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Kim Mills· Host0:29
If you've bought anything in the last few years, you've probably encountered a new way of paying for your purchases. When you check out at the grocery store or hit pay now in your online shopping cart, you're asked, "Do you want to pay in full today or split your purchase into four installments to be paid over time?" The prevalence and popularity of these buy now, pay later services has surged in recent years. One 2025 survey found that more than half of Americans had used a buy now, pay later service such as Afterpay, Klarna, or Zip in the prior 12 months. Today we're going to explore the psychology of spending, budgeting, and debt, including the rise of buy now, pay later services. How does the way we pay for a purchase affect our spending decisions? Why is it so easy to overspend? Why do people not pay off their credit card balances even when they have the cash? And how can we make better financial decisions in an increasingly complex and tempting financial landscape?