What affects Behavioral Economics?
Your _____ takes shortcuts to make ____ decisions
Brain , fast
The tendency to rely on the first thing you see or encounter
Anchoring Bias
FOMO stands for:
Fear Of Missing Out
You do well on a test and think “I carried,” but when you fail you say the test was unfair.
Self-Serving Bias
Our health and wellbeing
Physical Values
____ can affect what we believe and choose
Bias
The psychological urge to to look for information that confirms what you already believe
Confirmation Bias
People with FOMO tend to _____ because they get scared of missing on a trend
overspend
You keep looking for proof you’re right instead of considering the other side.
Confirmation bias
How we see others and how we believe other people sees us?
Inner Values
______ and _______ influence our thinking
Emotions, Experiences
When someone takes credit for their good traits but ignores or excuses their own flaws, while noticing other people’s flaws more easily
Self-Serving Bias
You have friends that are eating but you're on a diet. What would a person with FOMO MOST LIKELY DO?
a. You eat even though you're supposed to be on a diet
b. You tell your friends that you have to leave
c. You ask your friends to leave
A. You eat even though you're supposed to be on a diet
Someone says a phone “used to be $1,000,” so $700 suddenly feels like a deal
Anchoring Bias
Our desire for belonging and relatedness
Social Values
We don't always notice when bias is ________
happening
It causes people to make everyday money choices that protect what they have, but ultimately cost them more in the long run
Loss Aversion
Lily and her friends are out at the mall and they go in the Dior store. She sets her budget for $500 to go shopping but all her friends are buying bags that ranges from $2,000-$5,000. So Lily ends up wanting one. What's the best way Lily can deal with this situation?
a. Use her credit card to buy the $2,000 Dior bag
b. Stay within her budget and remind herself of things she needs instead
c. Steal her friend's bag
b. Stay within her budget and remind herself of things she needs instead
(Real Lily said she'd buy it with her credit card though)
You’d rather not risk losing $20 even if you could win $40.
Loss Aversion
How we value money, it has nothing to do with how much you have but it reflects how we see money
Financial Value
_______ can impact money, school, and everyday life
Cognitive Biases
When you continue something because of a past investment, even when stopping would be the better choice
Sunk Cost Fallacy
______ is key!!!! (Hint : How to overcome FOMO)
Awareness
You already paid for something you don’t want to do, so you still go anyway.
Sunk Cost Fallacy