Personal Finance Review Flashcard

Front

What is the definition of Personal Finance?

Back

The management of an individual's financial decisions, including budgeting, saving, spending, and planning for the future.

Front

Which term describes someone who takes a moderate approach to finances, carefully managing spending, saving, and investing?

Back

Balancer

Front

What is Anchoring Bias?

Back

A cognitive bias where undue emphasis is placed on the first piece of information.

Front

What does Behavioral Economics study?

Back

The influence of psychological and cognitive factors on economic decisions.

Front

Who is described as someone that focuses on using their money to make more money by allocating funds into stocks, bonds, or real estate?

Back

Investor

Front

What is the study of the production, distribution, and consumption of goods and services to satisfy needs and wants?

Back

Economics

Front

Which cognitive bias occurs when people ascribe more value to things merely because they own them?

Back

Endowment Effect

Front

What is the term for a cognitive bias where individuals mimic the actions, opinions, and decisions of a group?

Back

Herd Mentality

Front

What are mental shortcuts or rules of thumb that simplify decision-making processes called?

Back

Heuristics

Front

Which cognitive bias involves the discomfort of losing value being perceived as greater than the pleasure from gaining value?

Back

Loss Aversion