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Mind and markets

Lesson 96 · Written for kid, teen, and little

The Sunk Cost Trap

Find out why "but I already paid for it" is a weak reason to keep going.

The idea

A sunk cost is money or time you already spent and cannot get back. Quitting feels like wasting it, but the money is gone either way — walking away does not spend it a second time. The sunk cost trap is staying with something bad only because you already paid. Good deciders ask "what is the best choice from right now?" instead of "what did I already pay?" 🕰️

A

Words to know

5

Sunk cost

Money or time you already spent and cannot get back, no matter what you do next. The $15 movie ticket is gone whether you stay or leave.

Sunk cost trap

Sticking with something you don't like just because you already paid for it.

Forward-looking

Judging a choice only by what it gives you from now on. The question is not what you paid — it is whether the next hour is worth it.

Opportunity cost

The best thing you give up when you pick one option instead of another. Staying for a bad film costs you the two hours you could have spent anywhere else.

Refund

Money given back to you. If there is no refund, the money is a sunk cost and should not affect what you do next.

Try it — no accountTrue or false

Swipe true or false. Some of these are sneaky.

Card 1 of 4

A sunk cost is money you already spent and cannot get back.

Swipe the card — or tap.

In the full lesson

  1. 1True or false
  2. 2Put it in order
  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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