Econ - Personal Finance Unit 1

FOMO

The tendency to feel anxiety/fear that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on a social media website

Endowment Effect

The tendency to put more value on things you already own

Confirmation Bias

The tendency to search for information that supports our preconceptions and to ignore or distort contradictory evidence

Loss Aversion

The tendency to regard losses as considerably more important than gains of comparable magnitude

Herd Mentality

The tendency to conform to the behaviors and beliefs of the people around you

Hedonic Adaptation

The tendency to return to a baseline level of happiness regardless of whether you go through a positive or negative experience or event. This phenomenon suggests that people quickly adjust to changes in their circumstances, leading to a temporary increase or decrease in happiness.

Overconfidence

The tendency people have to be more confident in their own abilities

Sunk Cost Fallacy

The tendency to make decisions about a current situation based on what resources you have already invested in the situation.