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Freud came to the conclusion that personality is made of three mental categories: id, ego, and superego. The develop between these entities controls behavior and functioning in real-life situations/challenges. Id serves in the unconscious; containing drives and impulses to secure biological needs. Id is the only entity found during birth and follows Freud's pleasure principle, a desire for satisfaction disregarding social forms. The next stage, ego, operates by satisfying id desires through social customs/approval. This applies to the reality principle, functioning on a real-world basis. The last stage, superego, is a moral compass located mostly in the unconscious. It develops during early childhood and judges the moral ambiguity of the ego's decisions.

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This stage occurs during infancy in which the infant's mouth is the primary area of sensation. This leads to the involvement of acts such as breast feeding and biting other objects for stimulation. The oral stage develops forms of gratification for adulthood; it may lead to under gratification or over gratification. Little gratification, developed from a lack of nurture, may lead to passivity, dependency, and pessimism. Too much gratification might lead to habits such as smoking, overeating, or other oral fixations.

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The anal stage, which develops around 18 months of age to three, involves the anal cavity becoming the main erogenous zone. Toddlers learn to control the sphincter muscles leading to toilet training. During this period, toddler's must try to earn approval from parents. If the training becomes too harsh, the child may turn out with an anal-retentive personality (perfectionist, neat, clean). Opposing results might occur from too lenient of training know as anal-expulsive personality (undisciplined, messy, careless).

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The next stage spanning ages three to six has the erogenous zone alternating to the phallic region. Major conflicts that arise during this stage include the Oedipus complex in boys and the Electra complex in girls. These involve the parent of the opposing sex seen in incestuous ways; the other becomes a rival. Boys often develop masculine traits, while girls develop feminine traits. A failure to resolve oedipal problems at a young age may lead to resentment towards authority or even homosexuality (involving boys and girls). Boys may also develop castration anxiety because of their sexual thoughts, while girls inherit penis envy in relation to inferiority.

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The latency stage spans from six to twelve with sexual desires kept dormant.

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The final stage, the genital stage, occurs during puberty and spans into adulthood. Men will search out sexual partners resembling or behaving like their mothers, while women look for partners similar to their fathers.