Foundations & Profiles
Fundamental beliefs that shape and influence behaviors and decisions.
What are Values?
Mental shortcuts or rules of thumb that simplify decision-making processes.
What are Heuristics?
A bias where people place undue emphasis on the first piece of information received as a reference point.
What is Anchoring Bias?
The management of an individual's financial decisions, including budgeting, saving, and spending.
What is Personal Finance?
Fundamental beliefs that specifically shape and influence financial behaviors and decisions.
What are Financial Values?
A systematic deviation from rational thinking that leads to illogical judgments.
What is Cognitive Bias?
A bias where the pain of losing value is perceived as greater than the pleasure of gaining value.
What is Loss Aversion?
The study of production, distribution, and consumption of goods and services given scarce resources.
What is Economics?
Distinct patterns or tendencies in how individuals perceive, interact with, and manage their finances
What are Money Personalities?
A bias where individuals mimic the actions and decisions of a group, overriding their own judgment.
What is Herd Mentality?
A bias where people assign more value to things merely because they own them.
What is the Endowment Effect?
A social science studying how psychological factors influence economic decisions, challenging traditional rationality.
What is Behavioral Economics?
Someone who prioritizes accumulating money for security and stability through regular habits.
What is a Saver?
Someone who shies away from financial matters due to lack of interest, understanding, or fear.
What is an Avoider?
A bias where people treat money differently based on its origin or intended purpose.
What is Mental Accounting?
A theory suggesting individuals make rational calculations to maximize self-interest based on choices and constraints.
What is Rational Choice Theory?
Someone who focuses on using money to make more money by allocating funds into assets like stocks or real estate.
What is an Investor?
A person who enjoys spending money on purchases and experiences with little hesitation or concern for saving.
What is a Spender?
A bias where further investments are justified based on previously incurred, unrecoverable costs.
What is the Sunk Cost Fallacy?
Someone who takes a moderate approach to finances, balancing spending, saving, and investing.
What is a Balancer?