EcOnOMics & Personal Finance
PURPOSE Today’s objective is…
• Define Economics • Define Personal Finance • Identify the specifics that are unique to each topic AND…
…HOW DO WE FIT INTO THE BIG PICTURE?
ECONOMICS IS… …a social science that studies the management of goods and services, including the production and consumption and the factors affecting them.
ECONOMICS BROKEN DOWN/STUFF Goods are articles for sale or use, often those produced for later consumption. For People For Business
Services is an
ECONOMICS BROKEN DOWN/PEOPLE Services are economic activities where immaterial exchange of value occurs.
ECONOMICS BROKEN DOWN/ACTION Production is the action of making or manufacturing from components or raw materials.
ECONOMICS BROKEN DOWN/USE Consumption is the using up of a resource.
ECONOMICS BROKEN DOWN/WHY Does the world have enough natural/raw resources for every single person in the world to have whatever they wanted?
NO WAY! This is called SCARCITY.
ECONOMICS BROKEN DOWN/SCARCITY Partner with your neighbor. Identify how a person may experience scarcity Community Resources
Natural Resources
Individual Resources
PERSON
Time Resources
Family Resources
BASICS OF ECONOMICS/THEORY Capitalism- trade and industry are controlled by private owners for profit, rather than by the state.
Socialism-major industries are owned and controlled by the government rather than by individual people and companies
BASICS OF ECONOMICS/THEORY (CONT.) Communism-all property is publicly owned and each person works and is paid according to their abilities and needs
Mixed Economy – both private enterprise and state monopoly (usually in public services) coexist.
ECONOMICS VS. FINANCE WORKING PERAMETERS
M A N AG E T HE M O N E Y, HONEY!!
FINANCE IS… the social science of money management. Finance aims to price assets based on their risk level and their expected rate of return. The three sub-categories are: 1.Public finance 2. Corporate finance 3.Personal Finance: …
BASICS OF FINANCE/PUBLIC Government spending and the methods used to pay for that spending, especially taxation and borrowing. People Pay Taxes, which local, state and federal governments use to pay for our community services.
BASICS OF FINANCE/CORPORATE Corporate Finance are the activities involved in running a corporation or business.
BASICS OF FINANCE/PERSONAL Personal Finance is the financial management which an individual or a family unit performs to budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.
PERSONAL FINANCE - FACTORS IDENTIFY POTENTIAL FINANCIAL RISKS
FUTURE POTENTIAL LIFE EVENTS
PERSONAL FINANCE/TOOLS AND RESOURCES 1.Budgeting
2.Money Management 3.Banking 4.Credit Cards 5.Education 6.Security 7.Taxes 8.Investing
PERSONAL FINANCE /TOOLS AND RESOURCES Learning about economics and finance is something that you will use your whole life. The more you know, the better prepared you will be to make great decisions.
• Define Economics • Define Personal Finance • Identify the specifics that are unique to each topic AND…
…HOW DO WE FIT INTO THE BIG PICTURE?
ECONOMICS IS… …a social science that studies the management of goods and services, including the production and consumption and the factors affecting them.
ECONOMICS BROKEN DOWN/STUFF Goods are articles for sale or use, often those produced for later consumption. For People For Business
Services is an
ECONOMICS BROKEN DOWN/PEOPLE Services are economic activities where immaterial exchange of value occurs.
ECONOMICS BROKEN DOWN/ACTION Production is the action of making or manufacturing from components or raw materials.
ECONOMICS BROKEN DOWN/USE Consumption is the using up of a resource.
ECONOMICS BROKEN DOWN/WHY Does the world have enough natural/raw resources for every single person in the world to have whatever they wanted?
NO WAY! This is called SCARCITY.
ECONOMICS BROKEN DOWN/SCARCITY Partner with your neighbor. Identify how a person may experience scarcity Community Resources
Natural Resources
Individual Resources
PERSON
Time Resources
Family Resources
BASICS OF ECONOMICS/THEORY Capitalism- trade and industry are controlled by private owners for profit, rather than by the state.
Socialism-major industries are owned and controlled by the government rather than by individual people and companies
BASICS OF ECONOMICS/THEORY (CONT.) Communism-all property is publicly owned and each person works and is paid according to their abilities and needs
Mixed Economy – both private enterprise and state monopoly (usually in public services) coexist.
ECONOMICS VS. FINANCE WORKING PERAMETERS
M A N AG E T HE M O N E Y, HONEY!!
FINANCE IS… the social science of money management. Finance aims to price assets based on their risk level and their expected rate of return. The three sub-categories are: 1.Public finance 2. Corporate finance 3.Personal Finance: …
BASICS OF FINANCE/PUBLIC Government spending and the methods used to pay for that spending, especially taxation and borrowing. People Pay Taxes, which local, state and federal governments use to pay for our community services.
BASICS OF FINANCE/CORPORATE Corporate Finance are the activities involved in running a corporation or business.
BASICS OF FINANCE/PERSONAL Personal Finance is the financial management which an individual or a family unit performs to budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.
PERSONAL FINANCE - FACTORS IDENTIFY POTENTIAL FINANCIAL RISKS
FUTURE POTENTIAL LIFE EVENTS
PERSONAL FINANCE/TOOLS AND RESOURCES 1.Budgeting
2.Money Management 3.Banking 4.Credit Cards 5.Education 6.Security 7.Taxes 8.Investing
PERSONAL FINANCE /TOOLS AND RESOURCES Learning about economics and finance is something that you will use your whole life. The more you know, the better prepared you will be to make great decisions.
