Values & Decisions
What are life values and how do they influence financial decisions?
Life values are beliefs guiding how people spend and save money.
What does FOMO stand for?
Fear Of Missing Out
Define a cognitive bias.
A mental shortcut that leads to irrational decisions
What is behavioral economics?
The study of how psychology influences economic decisions
Naresh saves part of his paycheck—what value drives this?
Financial value—saving reflects future security
What game explored values and money?
The Bean Game
What % of people buy due to FOMO within 24 hrs?
About 60%.
What makes FOMO a cognitive bias?
It distorts decision-making based on emotion or social pressure
How do behavioral economists differ from traditional ones?
They focus on real human behavior, not perfect logic
Andrew only reads good reviews—what bias is that?
Confirmation bias
Which life value explains saving for emergencies?
Financial value
How can social media increase FOMO?
It triggers comparison and impulsive spending
Why do cognitive biases exist?
They simplify thinking even if they cause errors
Why might businesses use biases to their advantage?
To influence customers’ spending and choices
Mina copies her friends' app choice—what bias?
Herd mentality or FOMO
Name a factor that shapes financial values
Upbringing, culture, or personal experience
Give a strategy to avoid FOMO spending
Pause before purchasing; reflect on needs vs. wants
Name one common cognitive bias in money decisions
Confirmation bias, sunk cost fallacy, or overconfidence
What does the sunk cost fallacy mean?
Continuing with a decision due to prior investment, not logic
You keep eating because it was expensive—what fallacy?
Sunk cost fallacy
How can values lead to different spending choices?
Different values lead to different priorities when spending money
How does FOMO affect different age groups?
Younger people are more influenced by FOMO; awareness helps all age groups
How can awareness reduce bias influence?
Awareness helps question assumptions and improve judgment
How does understanding bias improve money decisions?
It helps people make rational, informed financial choices
How can you personally overcome one bias in your life?
Reflect, research, and take time before deciding