Bias Trap Worksheet
Financial Literacy & Writing Class Comment Drop Protocol
Bias Trap: The Sunk Cost Fallacy
Target Standard: Level 3+ Writing
Student:
Date:
Period:
Score: __/4
Essential Writing Prompt
How can cognitive biases, such as the Sunk Cost Fallacy, cause people to make irrational financial decisions? Why is it important to recognize this bias when managing money? Provide one specific real-world example.
Model Level 3+ Exemplar Breakdown
Exemplar Analysis
Claim & Bias “A cognitive bias that affects financial decisions is the Sunk Cost Fallacy. Irrational Mechanism This bias can cause people to continue throwing money into a bad decision simply because they already invested money or effort into it. Concrete Example For example, someone might continue paying to repair an old, unreliable car just because they spent $1,000 fixing it last month. Financial Impact Recognizing this bias is important because past spending cannot be recovered, and continuing to spend money only increases total financial loss. Actionable Strategy One strategy to reduce the impact of this bias is to focus only on future costs and benefits rather than money that is already gone.”
1. Name Bias
2. Explain Trap
3. Specific Case
4. Long-term Risk
5. Future Strategy
Sentence Frame Assist (Scaffold)
“A cognitive bias that affects financial decisions is ________. This bias can cause people to act irrationally by ________. For example, ________. Recognizing this bias is important because ________. One strategy to reduce the impact of this bias is ________.”
Your Draft: Independent Response
5+ Sentences Clear Example Rational Fix
Step 1: Write initial response Turn to Page 2 for Class Comment Drop Protocol →
Peer Collaboration
Class Comment Drop & Accountable Talk
Protocol Phase:
Peer Feedback & Dialogue
Accountable Talk Sentence Starters
Use these stems in your peer comment drops
1. Add On & Deepen
- • “Building on your point about ______, it also leads to...”
- • “Your example connects directly to ______ because...”
2. Clarify & Probe
- • “Could you clarify how your example demonstrates ______?”
- • “What would happen to their future budget if they ______?”
3. Push / Offer Alternative
- • “While I agree with your claim, an alternative strategy could be...”
- • “One financial factor your response might overlook is...”
4. Connect to Opportunity Cost
- • “The true cost here is not just money spent, but also the trade-off of...”
- • “By walking away, the person actually saves ______ in the future.”
Case Study Bank (Use for Examples or Comparisons)
Real-World Scenarios
Scenario A: The Gym Membership Trap
Jordan paid a non-refundable $150 sign-up fee plus $60/month. Jordan hasn't gone in 4 months, but refuses to cancel because “I already paid that big sign-up fee!”
Scenario B: The Laptop Repair Spiral
Taylor spent $300 fixing an old laptop last semester. It broke again and costs $250 to fix. A brand new, warrantied laptop costs $400. Taylor chooses repair to “protect the $300.”
DROP #1 Comment on Classmate's Response
Author:
Reviewer:
Stem Used: Add On Clarify Alternative Opportunity Cost
Peer Rubric Check:
Level 2 (Basic) Level 3 (Proficient) Level 4 (Exemplary)
DROP #2 Comment on Classmate's Response
Author:
Reviewer:
Stem Used: Add On Clarify Alternative Opportunity Cost
Peer Rubric Check:
Level 2 (Basic) Level 3 (Proficient) Level 4 (Exemplary)
Golden Rule of Money: “Never make a decision based on money you cannot get back. Decide based on future value.”
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