The Sunk Cost Fallacy: Why Students Should Learn When to Let Go

We’ve all heard this line before:

“I’ve already spent so much time on this — I can’t give up now.”

It sounds like perseverance — and sometimes, it is. But other times, it’s something else entirely.

This is the sunk cost fallacy — the tendency to continue a behaviour or effort simply because of what we’ve already invested in it, even when it’s no longer serving us.

Adults fall into this trap often — staying in jobs they dislike, or holding onto investments that aren’t working. But students fall into it too, often without realising.

How It Shows Up in Student Life

The sunk cost fallacy can sneak into many corners of a student’s experience:

Academic subjects:

A student might struggle with a subject they no longer enjoy but feel they “can’t give up” because of the years already spent on it.

CCA commitments:

A student who’s no longer passionate about a sport or club may continue out of obligation, fearing that quitting would “waste” past effort.

Study methods:

Some stick to revision routines that clearly aren’t effective — simply because “this is how I’ve always studied.”

Each of these decisions feels rational at first. But they’re actually decisions based on past costs — not future benefits.

Why It’s Hard to Walk Away

Walking away feels like admitting defeat.

In our culture, persistence is often celebrated — “Don’t give up!” is a message deeply ingrained from young.

But what’s less talked about is that strategic letting go can be just as wise — and sometimes, even more courageous.

The truth is, the sunk cost fallacy thrives in guilt and pride.

We tell ourselves that abandoning something means the past effort was wasted — when in reality, it simply means we’ve learned something valuable and are ready to redirect our energy.

The Lesson Beneath It All: Focus on Future Value

Helping students recognise this fallacy early builds emotional intelligence and decision-making maturity.

Here’s how parents and educators can guide that growth:

Reframe what it means to quit.

Quitting doesn’t always mean giving up — it can mean prioritising what truly matters. Teach students that pivoting is not failure, it’s progress.

Encourage reflective decision-making.

Ask, “If you hadn’t already spent time or effort on this, would you still continue today?”

This question shifts focus from the past to the present and future.

Model adaptive thinking.

Share your own stories of letting go — a hobby, a project, or even a career path. It normalises growth through change.

Emphasise learning over loyalty.

The takeaway isn’t about staying or leaving; it’s about what was learned and how that experience contributes to future choices.

The Power of Knowing When to Pivot

Students who learn to identify sunk costs early become more agile thinkers.

They know how to adapt, reprioritise, and focus their time where it truly counts.

Instead of asking, “How much have I invested?”, they start asking,

“What am I still gaining?”

That shift — from looking backward to looking forward — is the essence of growth.

A Thought to Leave You With

Sometimes, strength isn’t in holding on, but in recognising when something has served its purpose.

Teaching our children to make peace with that truth helps them face the future not with fear of loss — but with confidence in choice.