Money and our economy

The economy

• using the resources we have in the best possible way

• maximizing profits at any cost

• ensuring equal distribution of wealth

• focusing solely on industrial growth

The four resources necessary for a healthy economy:

• Natural resources, labor, management capacity, and capital.

• Technology, marketing strategies, financial investment, and human resources.

• Government regulations, consumer demand, international trade, and advertising.

• Infrastructure, research and development, customer service, and logistics.

management ability

• Using people to organize and direct resources effectively.

• The ability to perform tasks without the help of others.

• A skill that focuses solely on financial management.

• The capacity to work independently without supervision.

borrow

• Get a loan for money you don't have.

• To lend money to someone else.

• To save money for future use.

• To invest money in stocks.

financial literacy

• develop the five important areas in money management

• understand the stock market

• calculate interest rates

• create a personal budget

5 areas of financial literacy

• spend, save, earn, borrow, and protect

• invest, donate, gamble, and spend

• save, earn, waste, and borrow

• spend, save, earn, and invest

earn

• to receive money as a gift

• to earn money through work (labor), interest/profits through investments or business ventures

• to lose money in a business venture

• to spend money on unnecessary items

spend

• using your money to buy items you need or want, including investing

• saving money for future use

• donating money to charity

• borrowing money from a friend

wants vs needs

• Prioritize your spending between the things you must have (needs) and the things you want (wants)

• Spend all your money on things you want

• Ignore your needs and focus only on wants

• Buy everything you see without thinking

Capital

• A resource that allows you to buy things either with cash or credit.

• A type of investment that guarantees high returns.

• A government fund used for public projects.

• A financial term for a company's total assets.