Bias Behind Choices

Behavioral Economics

KAHOOT

VERSION

1. Which of the following defines a bias?

1. A choice made about spending money
2. A preference based on unreasoned judgment
3. A healthy debate about preferences
4. A summary of someone’s financial preferences

BIAS BEHIND CHOICES | APRIL 18, 2025 EDITION | NEXT GEN PERSONAL FINANCE

1. Which of the following defines a bias?

• A choice made about spending money
• A preference based on unreasoned judgment
• A healthy debate about preferences
• A summary of someone’s financial preferences

BIAS BEHIND CHOICES | APRIL 18, 2025 EDITION | NEXT GEN PERSONAL FINANCE

2. Overconfidence is an example of:

1. a personal preference
2. an experiential bias
3. a cognitive bias
4. a financial bias

BIAS BEHIND CHOICES | APRIL 18, 2025 EDITION | NEXT GEN PERSONAL FINANCE

2. Overconfidence is an example of:

• a personal preference
• an experiential bias
• a cognitive bias
• a financial bias

BIAS BEHIND CHOICES | APRIL 18, 2025 EDITION | NEXT GEN PERSONAL FINANCE

3. What percentage of Gen Z believes they’ll achieve a higher standard of living than their parents?

• 75%
• 50%
• 25%
• 10%

BIAS BEHIND CHOICES | APRIL 18, 2025 EDITION | NEXT GEN PERSONAL FINANCE

3. What percentage of Gen Z believes they’ll achieve a higher standard of living than their parents?

• 75%
• 50%
• 25%
• 10%

BIAS BEHIND CHOICES | APRIL 18, 2025 EDITION | NEXT GEN PERSONAL FINANCE

4. Which of the following describes the bias known as mental accounting?

• Choosing the first or default option
• Not having a written budget
• Thinking of your money in different buckets
• Using professional accounting strategies for your money

BIAS BEHIND CHOICES | APRIL 18, 2025 EDITION | NEXT GEN PERSONAL FINANCE

4. Which of the following describes the bias known as mental accounting?

• Choosing the first or default option
• Not having a written budget
• Thinking of your money in different buckets
• Using professional accounting strategies for your money

BIAS BEHIND CHOICES | APRIL 18, 2025 EDITION | NEXT GEN PERSONAL FINANCE

5. What is one example of mental accounting?

• Using money someone gifted you to treat yourself
• Using money someone gifted you to pay student loans
• Using money someone gifted you to repair your car
• Using money someone gifted you to pay a utility bill

BIAS BEHIND CHOICES | APRIL 18, 2025 EDITION | NEXT GEN PERSONAL FINANCE

5. What is one example of mental accounting?

• Using money someone gifted you to treat yourself
• Using money someone gifted you to pay student loans
• Using money someone gifted you to repair your car
• Using money someone gifted you to pay a utility bill

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BIAS BEHIND CHOICES | APRIL 18, 2025 EDITION | NEXT GEN PERSONAL FINANCE

You’ve completed the exercise, now it’s time to learn

more about the current event:

BIAS BEHIND CHOICES | APRIL 18, 2025 EDITION | NEXT GEN PERSONAL FINANCE

Discussion Prompt:

Have you made a purchase �purely based on emotion or �using faulty logic?

Explain.

BIAS BEHIND CHOICES | APRIL 18, 2025 EDITION | NEXT GEN PERSONAL FINANCE

Extend Your Learning

THREE RELEVANT RESOURCES FROM NGPF:

• Chart: What Are The Mental Mistakes We Make And Why Do We Make Them? (Blog)
• Play the Ultimatum Game (Activity)
• Is the Stock Market Irrational (Edpuzzle)

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REFERENCES:

• Cognitive vs. Emotional Investing Bias: What’s the Difference? (Investopedia)
• Fewer Americans are making more than their parents did—especially if they grew�up in the middle class (Brookings.edu)
• 8 Examples of “Mental Accounting” and How to Avoid Them (The College Investor)
• Banking Outlook Report (BAI)

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BIAS BEHIND CHOICES | APRIL 18, 2025 EDITION | NEXT GEN PERSONAL FINANCE