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Posts Tagged ‘behavioral economics’

The board game called LIFE was originally created in 1860 by Milton Bradley. The game simulates a person’s travels through their life, from early adulthood to retirement, with college if necessary, jobs, marriage/companionship, and possible children along the way.

As we all travel the journey of life, we all make decisions to fill our needs and wants. Filling our needs and wants requires MONEY, and each decision has costs associated with fulfillment. We call this the opportunity cost of a decision. Each time we make a decision to spend or save MONEY. We also make a decision to NOT spend or save for something else.

Americans live and work in a market economy that demonstrate the six characteristics in the image below:

  1. Private property
  2. Freedom of choice
  3. Motive of self-interest
  4. Competition
  5. System of markets and price
  6. Limited government
characteristics of a market economy infographic

Healthy Finances refer to a state of financial well-being.  A team of researchers assembled by the Consumer Financial Protection Bureau (CFPB) suggests financial well-being can be defined as a state of being where you: 

  1. Have control over day-to-day, month-to-month finances 
  1. Have the capacity to absorb a financial shock 
  1. Are on track to meet your financial goals 
  1. Have the financial freedom to make the choices that allow you to enjoy life.

Now is a good time to identify what your emotions are around money.

Use a notebook or journal to write about three money decisions you made within the past four weeks.  Next, go back and reread what you wrote and circle the words that describe the emotions you experienced in the decision-making process.   

Whatever the emotions, make space for them and acknowledge what they’re telling you. Make time to learn from them and decide which ones to let go as you move forward on life’s journey.

Author: Margaret Jenkins, Family and Consumer Sciences Educator, OSU Extension Clermont County

Reviewer: Mackenzie Mahon, 4-H and Family and Consumer Sciences Educator, OSU Extension Clermont County

References 

  1. Consumer Financial Protection Bureau (2014). Financial Literacy Annual Report. http://www.consumerfinance.gov/reports/financial-literacy-annual-report-2014/
  1.  Melnyk, B.M. & Neale, S. (2021). 9 dimensions of wellness: Evidence-based tactics for optimizing your health and well-being. The Ohio State University. https://wellness.osu.edu/sites/default/files/documents/2021/05/9%20Dimensions%20of%20Wellness%20Digital.pdf

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