ELI5: Explain Like I'm 5

Sunk cost

A sunk cost is something you paid for in the past that you can't get back. Imagine you went to a carnival and paid $10 for a goldfish. You can't get your $10 back but your goldfish is still with you, so the $10 is a sunk cost. When you make decisions, you should not factor in the sunk cost because it has already happened and can't be changed.