Your Brain & Money

Explain what a cognitive bias is and how it can cause someone to make irrational decisions, particularly around money.

• A cognitive bias is a systematic pattern of deviation from norm or rationality in judgment, which can cause someone to make irrational decisions, especially regarding money.

• A cognitive bias is a financial strategy used to maximize profits in the stock market.

• A cognitive bias is a type of memory loss that affects only financial decisions.

• A cognitive bias is a legal term for fraudulent activity in banking.

Name at least two cognitive biases you have learned about.

• Examples of cognitive biases include confirmation bias and anchoring bias.

• Examples of cognitive biases include gravity bias and lunar bias.

• Examples of cognitive biases include oxygen bias and water bias.

• Examples of cognitive biases include triangle bias and square bias.

What percentage of people do you believe make purchases due to FOMO (Fear of Missing Out)?

• Approximately 60% of people are influenced by FOMO when making purchases.

• Approximately 20% of people are influenced by FOMO when making purchases.

• Approximately 35% of people are influenced by FOMO when making purchases.

• Approximately 80% of people are influenced by FOMO when making purchases.

60% of people make purchases because of FOMO, mostly within 24 hours. How close was your guess?

FOMO is best described as:

• The fear of missing out on something important or exciting

• A type of financial investment

• A new social media platform

• A method of time management

FOMO can impact your spending behavior. Have you ever experienced it?

• Yes, I have experienced FOMO and it has impacted my spending.

• No, I have never experienced FOMO.

• I have experienced FOMO, but it did not impact my spending.

• I am not sure what FOMO is.

One way to avoid overspending due to social factors like FOMO is:

• Setting a budget and sticking to it

• Ignoring all social invitations

• Spending more to fit in

• Avoiding making any purchases

FOMO (Fear Of Missing Out) can influence spending habits among different age groups. Which of the following is an effective strategy to manage such impulses?

• Setting a budget and sticking to it

• Ignoring all social invitations

• Spending more to keep up with peers

• Avoiding all online shopping platforms

What does FOMO stand for in the context of financial decisions and social media?

• Fear of Making Opportunities

• Fear of Missing Out

• Fun of Making Options

• Future of Money Online

According to the passage, how can FOMO influence our decisions?

• It can make us more careful with money

• It can influence our decisions around money

• It has no impact on our choices

• It only affects our social life