Activity Idea: Name and Tame The 10 Cognitive Biases That Hurt Us Financially!
Hat tip to Big Picture Blog, which shared some cartoons highlighting the cognitive biases (see Bandwagon Effect above) that we all suffer from which impact our money management decisions.
So, how to incorporate into your class?
Here is an idea:
- Have students work in pairs to do online research (a Webquest of sorts) about ONE cognitive bias. You can assign them to ensure that all ten are covered.
- Their research should include:
- Description of what the bias is.
- Three ways that this bias can impact money decisions
- Specific examples of how this bias impacts the students’ lives (how have they been personally affected by this)
- Strategies on how they can tame this bias
- Other examples of fun cartoons/images that demonstrate this bias
- You decide on how best to present their findings (e.g. poster boards, oral presentations, role plays)
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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