Mental Accounting in Wedding Budget: Perspective of Accounting Practitioner in Indonesia

Nisrin Naziha Isma; Lilik Purwanti

doi:10.55927/ijbae.v4i6.503

Authors

Nisrin Naziha Isma Brawijaya University
Lilik Purwanti Brawijaya University

DOI:

https://doi.org/10.55927/ijbae.v4i6.503

Keywords:

Mental Accounting, Wedding Budgeting, Behavioral Finance, Accounting Practitioners, Emotional Overspending

Abstract

This study examines the application of mental accounting principles to the wedding budgeting behavior of accounting experts in Indonesia. Mental accounting, a concept in behavioral finance, explains how individuals mentally categorize funds, influencing budgeting, particularly in high-stakes emotional events like weddings. The research used informal semi-structured interviews with ten accounting practitioners (academics and public accountants) across Indonesia. The result showed unanimous budget deviation that 100% of the experts overspent their wedding budgets. The primary reasons were pressure to impress guests and the "once-in-a-lifetime" mindset. This indicates that emotional and social motivations, governed by mental accounting, dominate professional financial knowledge in emotionally charged contexts.

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