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In a perfect world, we'd spend our money on only the
things that we absolutely need

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We'd be rational robots that use perfect logic to determine
what to buy: 

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$10 comes in, $10 goes out to meet our basic needs to
survive.

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And that's what we mean when we talk about economics:

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The science of how people buy and use goods based on
rational thinking.

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But we're not rational robots; 

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we're emotional humans whose decisions can be heavily
influenced by emotion.

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If you've ever gone to the grocery store when you're
hungry, 

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you know what we're talking about: research shows that not
only does everything look good when we're hungry

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but we're also willing to pay more for it. Clearly, this
makes the theory of economics pretty flawed.

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Truth is, just about every decision we make involves an element of irrationality.

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We can't help it, we're humans.

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And that's essentially the definition of behavioral economics.

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This science takes into account our feelings,

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our biases and our internal motives...

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...that can lead us to making choices that don't make sense

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-- at least to regular economics. 

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But the way our brains are wired also influence our
choices. 

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Your brain comes pre-programmed to light up in response to certain financial decisions,

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which helps to explain why saving comes so easily to some

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and seems impossible to others.

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This science is called neuroeconomics,

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and it focuses on this fascinating study of your brain and your brain on money.