ELI5: Explain Like I'm 5

Psychological contract

Okay kiddo, imagine you have a deal with your parents - if you finish your homework every day, they promise to give you a reward like watching a show or playing a board game. This deal is what we call a "psychological contract", which is like an invisible agreement that you make with someone else.

Similarly, grown-ups also make these agreements with their bosses, coworkers, and friends. These agreements are usually about what they will do for each other and what they will get in return. For example, when you go to school, you promise to study hard and behave well, and in return, your teacher promises to help you learn and give you grades for your efforts.

But here's the thing, kiddo - psychological contracts are different from written contracts you see for buying or selling stuff. They are not enforceable by law, and you cannot take legal action if someone breaks their promise. Instead, psychological contracts depend on trust and respect between two people.

So, it's important to understand what promises are made and keep them to make sure everyone is happy. Otherwise, there might be disappointment or frustration, and the relationship between two people may suffer. That's why grown-ups talk about psychological contracts to make sure everyone is on the same page and knows what is expected of them.

That's the basics of psychological contracts, kiddo! Remember to be honest and trustworthy in all your agreements, and you'll have a great relationship with everyone you deal with!