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Mind and markets

Lesson 95 · Written for kid, teen, and little

Why Losses Sting More

A $50 loss stings more than a $50 gain feels great, and that lopsided feeling changes choices.

The idea

Losing $10 usually stings more than finding $10 feels good — for most people the sting is noticeably louder than the cheer. That lopsided feeling has a name: loss aversion. It can push people to sell in a panic when prices dip, or to cling to something they no longer believe in just to avoid admitting a loss. Knowing your brain does this doesn't switch the feeling off, but it does let you pause and check the facts before you act. ⚖️

A

Words to know

5

loss aversion

When losing something hurts more than winning the same amount feels good. Losing $50 stings more than finding $50 delights.

gain

When something you own is worth more than you paid for it. Bought at $30, now $38, so you have an $8 gain.

loss

When something you own is worth less than you paid for it. Bought at $30, now $22, so that is an $8 loss on paper.

panic selling

Selling fast because you feel scared, not because the facts changed. It is how a $8 paper loss becomes a real one.

risk

The chance that things turn out worse than you hoped. Your $100 might become $70 before it ever becomes $130.

Try it — no accountTrue or false

True or not true?

Card 1 of 4

For most people, losing $50 feels stronger than gaining $50.

Swipe the card — or tap.

In the full lesson

  1. 1True or false
  2. 2Work out the number
  3. 3Make the call

Vine has 107 lessons like this one, each written three ways so a 7-year-old and a 17-year-old both get a version that fits.

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