Name: Students will be able to: Understand what herd mentality and FOMO are Explain how these two cognitive biases impact our personal finances Identify practical steps someone can take to combat the influence of herd mentality and FOMO NOTE: Vocabulary for this unit can be found in the NGPF Personal Finance Dictionary INTRO PROMPT: Use the space below to answer the prompt. 1. Your personal finance teacher asks a multiple choice question as part of a fun, whole-class game you're playing. The overwhelming majority of your classmates raise their hands for answer choice B. However, you are pretty confident the answer is D. Do you change your mind and pick answer B or stick with your answer, D? Explain.

In this scenario, it is important to consider the potential impact of herd mentality and FOMO on personal finance decisions. Herd mentality refers to the tendency of individuals to follow the actions or beliefs of a larger group, even if it goes against their own judgment or intuition. FOMO, or fear of missing out, is the fear that others are having rewarding experiences from which one is absent.<br /><br />In this case, the overwhelming majority of classmates are choosing answer choice B, which may indicate a herd mentality. However, it is important to remember that just because a majority of people believe something, it does not necessarily make it correct. It is crucial to trust your own judgment and make decisions based on your own research and understanding, rather than simply following the crowd.<br /><br />Therefore, in this situation, it would be best to stick with your answer choice D, as you are confident in your judgment. It is important to not be swayed by the opinions of others and to make decisions based on your own research and understanding, rather than simply following the crowd.