Cindy just graduated from college and started working at a large accounting firm.Although the firm will match her contributions to a retirement account,Cindy wants to wait several years before participating since there are so many things she needs to buy right now.What type of behavior does this represent?

A) unrealistic expectations about the future
B) loss aversion
C) mental accounting
D) risk aversion

Mental Accounting

A concept in behavioral economics where individuals categorize and treat money differently based on subjective criteria, often leading to irrational financial decisions.

Retirement Account

A financial account designed for saving money towards retirement, often offering tax benefits.

Contributions

Payments or services provided by individuals or organizations towards a common fund or cause, often used in the context of charitable donations or participation in joint projects.