Money can't buy happiness... or can it?

Is it just me, or are grocery packages getting smaller?

Everything costs money, but do we really spend it the way we want to? Are we always in control of our wallets? We've probably noticed some of these 10 pricing tricks before, but never knew they had a name or understood exactly how they worked. From grocery shopping to everyday purchases, these strategies are everywhere. So, how many of these money terms do you recognize from your daily life?

The word "shrinkflation" joins two words: shrink and inflation. It describes what happens when a product gets smaller, but the price stays the same, or even goes up. We've all noticed it at least once: you pay the same amount, but get fewer chips, less cereal, less juice, or a thinner chocolate bar.

Companies do this when costs grow. And it works, because a smaller package is always harder to notice than a higher price. Although the box looks the same, the printed weight gets lower.

"Decoy pricing" or "decoy effect" means adding a third option that nobody is supposed to buy, to make another option look like a better deal. Movie theaters are the classic example. When the small popcorn costs $3 and the large costs $7, most people buy the small one. But then the theatre adds a medium for $6.50. Now the large one costs only $0.50 more than the medium, so many people choose large. The medium one is the decoy.

Decoys are everywhere: in coffee sizes, magazine subscriptions, phone plans, and online services with three price levels. In most cases, the middle or the top option is the one the seller wants us to pick.

You may have already noticed this trick everywhere. We can spot "charm pricing" every time a price ends in 9, 99, or 95. When we want to buy a shirt, it costs $19.99 instead of $20. The difference is only one cent, but $19.99 feels much cheaper because we read prices from left to right and pay the most attention to the first number. So $19.99 feels closer to $19 than to $20.

Round prices, like $100, often make a product look more elegant or expensive, so luxury stores tend to use them instead.

"Price anchoring" is our habit of trusting the first price we see. That first number becomes our point of comparison: we judge every other price against it, even if the first number was already far too expensive.

When a tag shows an old price of $120 crossed out and a new price of $55, the $55 looks like a great deal because we compare it to $120, not to what the item is really worth (or to how much we can actually spend on it).

The "pain of paying" is the discomfort we feel when money leaves our hands. This discomfort appears when we pay with cash. With a credit card, we pay later, and nothing literally leaves our wallet.

Studies even say people pay much more for the same item when they use a card. This explains why cards, payments done over the phone, and "buy now, pay later" offers make shopping feel easier. People who understand this trick pay with cash on purpose, because feeling the pain helps them spend less.

This term comes from Denis Diderot, an 18th-century French writer. In the 1760s, a friend gave him a new robe, and Diderot soon realized his old furniture looked poor next to it. So he replaced his furniture to match it. In the end, he was in debt. He wrote a short essay about this, and his story gave the habit its name.

The "Diderot effect" describes how one new purchase can lead to many others. The new item makes the things around it look old, and we develop the need to replace them too. We tend to see this more often in home decoration, fashion, and technology. You buy a new sofa, and then the rug, the lamp, and the curtains suddenly look old. Or you buy a new phone, and now you want the matching watch, headphones, and case.

When money is tight, many people stop buying big luxury items, like designer coats or expensive trips. But since they still want to treat themselves, they buy small, cheaper treats instead, like a new beauty product. This is called the "lipstick effect."

The name comes from the beauty industry: lipstick sales tend to grow when the economy goes down. The same process applies to any small luxury people buy during hard times. It could be fancy coffee, movie tickets, or anything that causes a quick emotional boost.

We use "mental accounting" when we put our money into separate groups in our head. One group is for rent, another for food, another for fun, another for unforeseen events. In theory, a dollar is a dollar, no matter where it comes from. But in practice, we treat money differently depending on its source and its label.

Money we earn from work feels serious, so we treat it carefully. But money that arrives as a surprise feels lighter, so we spend it faster. In tax season, people often see a tax refund as a bonus and spend it on extras, and the same happens with work bonuses and gifts.

Most of the time, fewer people buy an item when its price goes up, but "Veblen goods" break this rule. For these products, a higher price makes people want them more. The high price is actually part of what they are buying.

Thorstein Veblen was an American economist who called this "conspicuous consumption," the act of spending in a visible way: like luxury watches, designer handbags, rare wines, and sports cars. If a fancy brand cut its handbag price in half, some buyers would lose interest; the bag would no longer show that they can afford something expensive.

"Doom spending" is a new term young people made popular online. It describes buying things to feel better when you are worried about the economy or the future. The thinking follows this logic: "If I can't afford a house anyway, I might as well buy this jacket."

The name is based on "doomscrolling," the habit of reading bad news on your phone for hours. Surveys say about one in four adults "doom spend" to deal with stress. The habit is more common among millennials and Gen Z.

LATIN LEGAL LINGO

Do You Want To Sound Like a Lawyer?

Image: Tingey Injury Law Firm

In the field of legal speech, Latin expressions are of everyday use. And it’s no surprise that more than just aqueducts and conquering empires, the Romans also laid the groundwork for modern-day law one expression at a time. That’s right, Latin may be a dead language, but its influence in the legal world is still going strong.

Grab your gavels and don your thinking caps as we explore ten Latin expressions that continue to shape the world of law today.

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Let’s kick things off with a legal heavyweight: habeas corpus. This Latin phrase translates to "you shall have the body," and it is all about protecting an individual’s right to be free from unlawful detention by compelling authorities to produce the detained individual before a court, thereby ensuring their right to challenge the legality of their imprisonment.

From the Magna Carta to modern-day constitutional democracies, habeas corpus remains a cornerstone of due process and the rule of law.

Image: Emil Kalibradov

Life is not always easy, and some groups are more vulnerable than others. Regardless, we might all go through a process that we need but can’t afford. That is when "pro bono" comes into play. This Latin expression refers to lawyers serving the cause of justice without expectation of monetary reward. In other words, they work for free.

The literal translation is "for the good," pro bono work embodies the noble ethos of providing legal assistance to those unable to afford it. Whether advocating for marginalized communities or social causes, lawyers uphold the spirit of pro bono as proof of commitment to equality.

Image: Saúl Bucio

You have surely heard the saying "Actions speak louder than words." And this is also the case in the world of court and justice. But in this case, "actions" can be changed for "evidence" because evidence can speak for itself, that is the essence of this saying.

This legal doctrine shifts the burden of proof onto the defendant when an injury or accident is so inherently indicative of negligence that no further evidence is required. From medical malpractice to product liability cases, res ipsa loquitur serves as a powerful tool in the pursuit of justice.

Image: Kenny Eliason

Have you ever felt your teacher, or your kids’ teachers, were a second mom or dad? Well, that is because they are often acting "in loco parentis." This expression describes how institutions like the school are granted the authority and responsibility to act in the place of parents.

Whether supervising students on a field trip or disciplining a wayward pupil, educators assume the role of surrogate parents exercising care and authority in loco parentis.

The Latin expression maxim underscores the delicate balance between parental rights and institutional duties in shaping the minds and futures of the next generation.

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More often than not, things are different in practice than they are on paper, and for those cases, we are to thank the Latin language for giving us the "de facto" expression. Beneath the veneer of legal formalities lies the undeniable truth of "de facto" arrangements, which acknowledges the practical reality of a situation, despite the lack of official recognition.

For example, we all know that couple who has been living together for ages, but they aren’t married. This expression sheds light on the gap between legal status and lived experiences, urging policymakers and jurists to confront the complexities of social dynamics beyond mere legal constructs.

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Have you ever heard the expression "First impressions are everything"? Well, that’s the essential idea behind "prima facie." Translated, this Latin expression means "at first sight," which is why we think of first impressions.

Prima facie describes a fact or a presumption of fact that is, in itself, regarded as true unless it can be disapproved or rebutted later in the process. For example, in the case of evidence, prima facie evidence is considered true but it is subject to further investigation.

From civil lawsuits to criminal prosecutions, presenting a prima facie case lays the foundation for subsequent legal proceedings.

Image: Dayne Topkin

Have you ever wondered what happens when the judge and one lawyer have a private chat? In the hushed corridors of legal proceedings, "ex parte" motions and communications unfold away from the prying eyes of opposing parties.

Latin for "from one party," ex parte interactions occur when one side seeks relief from the court without the presence or participation of the other party.

While it is necessary in certain urgent or sensitive circumstances, this is synonymous with having secret meetings, so it raises concerns about fairness and transparency.

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Think of your favorite dish or your favorite recipe, there is always that one ingredient you can’t do without, isn’t that so? Well, that is the sine qua non of the recipe. In the legal world, "sine qua non" stands for those elements which are crucial, and without which the entire case would crumble.

From contract law to causation analysis, identifying the sine qua non of a case claim clarifies the essential link between cause and effect. The sine qua non elements are those that are indispensable and make everything come together because they are absolutely necessary.

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We all have problems and, since each problem is unique, each solution has to be so in some way. That is when you need an "ad hoc" approach**, a customized solution to fit your needs perfectly**.

In the field of legal proceedings, this approach is essential and flexibility is paramount. Ad hoc, which translates to "for this situation", describes those custom-tailored solutions arranged for specific issues or requirements that arise in the process.

Whether forming ad hoc committees or crafting ad hoc agreements, legal practitioners take this approach to demonstrate adaptability and resourcefulness.

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This list will end with a caution: caveat emptor! When you are shopping for something, it is always a good idea to keep your eyes open for any tricks, which means, you are responsible for checking things out before you pay any money.

This Latin expression translates to "let the buyer beware" and it places responsibility on consumers as they should exercise caution and discretion. Even if consumer protection laws offer some safeguards, caveat emptor reminds us that informed buyers are empowered buyers.