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We tend to underestimate our future expenses – here's one way to prevent that

  • Written by Ray Charles "Chuck" Howard, Assistant Professor of Marketing, Texas A&M University
We tend to underestimate our future expenses – here's one way to prevent thatAround 12 million Americans take out payday loans to help them pay for monthly expenses.andriano_cz/iStock / Getty Images Plus via Getty Images

The Research Brief is a short take about interesting academic work.

The big idea

When asked to estimate how much money they would spend in the future, people underpredicted the total amount by more than C$400...

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