Part of micro-economics involves financial decision making at an individual level. Understanding "why" we do what we do, when it comes to decision making, will form an important foundation to making financial decisions. Cognitive Bias is a systematic error in thinking that occurs when people are processing and interpreting information in the world around them and affects the decisions and judgements they make. These two documents allow students and teachers to work through cases and situations where various types of cognitive bias exists and how it may impact decision making.

Answer the following questions in complete sentences regarding how microeconomic principles can really impact how individuals make financial decisions.

The objective of this activity is for students to become familiar with common cognitive biases they may experience while making financial decisions. Students race to match definitions and examples of how biases show up in a personal finance context to the corresponding biases.