BRAIN POWER
This brain part is responsible for logical and analytical thinking.
The Neocortex
These are unconscious patterns built through repetition.
Habits.
The first step in the habit cycle is called this.
The Cue.
Cognitive biases are mental ______ the brain uses to decide quickly.
Shortcuts.
A student keeps paying for a gym membership they never use because they already paid for the year.
The Sunk Cost Fallacy.
This part of the brain controls emotions, pleasure, and motivation.
The Limbic System.
These are subconscious thoughts and feelings.
Attitudes.
This is the behavior part of the habit cycle.
The routine.
These can cause systematic errors in thinking.
Cognitive Biases.
Someone buys expensive sneakers so they don’t feel left out at school.
FOMO. Fear of Missing Out.
This brain part reacts quickly to danger using fight, flight, or freeze.
The Cerebellum.
Habits + Attitudes = ________
Habits or Habitudes.
This is what you get from completing the routine.
The reward.
Valuing something more just because you own it is called this.
The Endowment Effect.
A person refuses to sell their old phone for a fair price because “it’s worth more to me."
The Endowment Effect.
For every 1 logical message, the brain sends many of these types of messages.
Emotional messages.
Name TWO influences that shape our money habits.
Personal experiences and religion/spirituality
The best way to break a bad habit is by doing this.
Replacing with a new habit.
Spending money to avoid feeling left out is called this.
FOMO. Fear of Missing Out.
A shopper buys something because the ad says “LIMITED TIME ONLY!”
Cognitive bias triggered by emotional marketing.
This type of thinking often overrides logic when making money decisions.
Emotional thinking.
This connects Habitudes to the way we behave with money.
The Psychology of Money.
Cue → ______ → Reward
Routine.
Continuing something because you already invested time or money is this bias.
The Sunk Cost Fallacy
Someone blames everyone else for their money problems instead of recognizing their own behavior patterns
Cognitive bias.