Reality is complicated. Mental models simplify it. A “mental model” is a representation used to understand or reason about the world. An example of a mental model is when reserves or rainy-day funds are likened to a savings account. This takes the complicated reality of fund balances and reduces it to a concept that people are familiar with in their personal lives.

Everyone uses mental models. However, those models may not be explicitly recognized. And just like some maps are better for navigating roadways than others, some mental models are better for navigating reality than others.

Public finance professionals often wish their audiences were better informed about public finance. Providing people with better mental models is a shortcut to help them become better informed and make better decisions. The Mental Model Makeover Challenge encouraged the GFOA community to work together to develop better mental models. The deadline to enter has passed. Stay tuned to hear updates on the winning entries.

Click here to read our report on Simplifying Complexity. Want to listen to an audio version of the report instead? Simply scroll down and hit the play button on the audio player.