Have you ever looked at your bank account at the end of the month and wondered, “Where did all my money go?” You’re not alone. Many of us lose track of spending, especially when it comes to the little things — a quick snack, an extra coffee, or that app you forgot you subscribed to. These small costs fly under the radar because they feel harmless in the moment.

Psychologists say our brains are wired to pay more attention to big events or purchases. That fancy phone you bought? You probably planned for that. But the $5 coffee you grab every morning without a second thought? That’s what people have started calling the “latteperday” effect. It’s these small, daily costs that often add up without us even noticing.

One reason is that small payments don’t trigger the same response in our brain as larger ones. We often tell ourselves, “It’s just a few bucks,” and move on. But if you spend $5 every day, that’s $150 in a month. Over a year, it's nearly $2,000. That’s a vacation!

Another reason why we ignore small spending is habit. Daily routines make these costs feel normal, even necessary. That snack you grab during lunch? You buy it without thinking, because it’s just part of your day. These habits are hard to break, especially when they give us quick satisfaction.

Subscriptions are another sneaky way small costs creep in. Many of them are set to auto-renew, so even if you don’t use that app or streaming service, the money is still leaving your account. Because the charge is small, we’re less likely to notice or cancel it.

So, what can you do? The first step is to be more aware. Try tracking every expense for one week — yes, even the gum you bought at the gas station. You might be surprised at how much you spend on “little things.”

It’s not about giving up your coffee or treats altogether. It’s about knowing where your money goes and choosing how you want to spend it. A few small changes here and there can free up more cash for the things that truly matter to you.