Collaborative Problem Solving (CPS) is an approach to addressing complex problems by involving multiple individuals or groups in the problem-solving process. It emphasizes teamwork, communication, and shared decision-making to arrive at effective solutions.

The framing effect is a cognitive bias that highlights how individuals react to the context or presentation of information rather than the information itself. The framing of a decision can influence people's perceptions, judgments, and choices. This concept has significant implications for decision-making in various areas, such as finance, health, and public policy.

The Sunk Cost Fallacy is a cognitive bias where individuals continue to invest in a decision or project based on the cumulative prior investment (sunk costs), even when it is not rational to do so. In other words, people may feel compelled to continue with a course of action because of the resources they have already invested, even if the future benefits are unlikely or the costs outweigh the benefits.

The Endowment Effect is a psychological phenomenon in behavioral economics where people tend to assign higher value to items simply because they own them. In other words, individuals tend to overvalue objects in their possession compared to the same objects not owned. This can influence decision-making in various contexts, such as buying, selling, or trading goods.

Zero-based budgeting (ZBB) is an approach to budgeting that involves building a budget from the ground up, starting with a zero base for each budgeting period. In both personal finance and organizational contexts, this means that every expense must be justified and approved, regardless of whether it was included in previous budgets.

Cash flow budgeting is a financial management approach that focuses on tracking and managing the actual inflows and outflows of cash in a given time period. This budgeting method is particularly useful for individuals, businesses, or organizations to understand how money is moving in and out of their accounts, ensuring they have enough liquidity to cover their financial obligations.

The debt avalanche method is a debt repayment strategy that involves prioritizing and paying off debts based on their interest rates. In this method, you focus on tackling the debt with the highest interest rate first, making larger payments towards it while paying the minimum on other debts.

The debt snowball method is a debt repayment strategy that involves paying off debts in a specific order, starting with the smallest balance and progressing to the largest. In this approach, you focus on eliminating the debt with the smallest outstanding balance first, regardless of the interest rate associated with each debt.

The 50/30/20 rule is a budgeting principle that recommends dividing your after-tax income into three main categories: allocate 50% to essential needs such as housing and utilities, 30% to discretionary wants like entertainment and dining out, and reserve 20% for savings and debt repayment, encompassing contributions to savings accounts, retirement funds, and debt reduction.

The envelope system is a budgeting method that involves allocating and managing cash for different spending categories using physical envelopes. This system is designed to help individuals and households control their spending, prioritize financial goals, and avoid overspending in specific areas.

Anchoring and adjustment is a cognitive bias where individuals rely heavily on the first piece of information encountered (the anchor) when making decisions or judgments. They then adjust their subsequent evaluations or decisions from that initial anchor, often insufficiently, leading to biased conclusions or choices. This bias can influence various areas such as negotiations, pricing perceptions, financial decisions, and judgments, causing individuals to be overly influenced by irrelevant or arbitrary initial information.

Mental accounting is a psychological concept where individuals categorize and treat their money differently based on subjective criteria rather than seeing it as a unified pool of funds. Understanding this concept is crucial because it influences how people make financial decisions and allocate their resources.

Loss aversion is a concept in behavioral economics that describes the tendency for people to strongly prefer avoiding losses over acquiring equivalent gains. Essentially, the emotional impact of losing something is felt more strongly than the pleasure derived from gaining something of equal value.

Hyperbolic Discounting is a concept from behavioral economics that describes how people tend to prefer smaller, immediate rewards over larger, delayed rewards, but their preferences change depending on the time frame. Understanding hyperbolic discounting can help individuals make more informed decisions about balancing immediate rewards with long-term benefits. By recognizing this bias, people can implement strategies to mitigate its effects and make choices that align better with their long-term goals.

Diversification strategy, in the context of behavioral economics, refers to the practice of spreading investments across different asset classes or sectors to reduce risk and increase the likelihood of positive outcomes. This strategy recognizes that investors are subject to cognitive biases and emotional influences that may lead to irrational decision-making, such as overconfidence, loss aversion, or herd behavior. By diversifying their portfolios, investors can mitigate the impact of these biases and enhance their overall investment performance.

Cookie jar approach is a way of investing which allows you to make savings and investments by allocating money to different buckets and manage expenses.

This budgeting system combines tracking purchases with the habit of mindfulness in order to reign in unnecessary spending and help you achieve savings goals.