Most important!

The most important topic we covered during economics was the idea of supply and demand. It's the biggest thing we learned because it revolves around everything we have talked about in some way. Companies would not be able to sell anything if there is no demand. 


Basically ... you can't make money if you don't have supply, and without money... you can't get demand, then it goes back to NO DEMAND... NO SUPPLY!


It's really just one huge circle that controls our economical system!

Investments

There are SO many ways you can invest your money, but do know exactly what they all mean?

Stocks: ownership in a corporation and represents a claim on part of the corporation's assets and earnings

want to learn how to buy stocks? Check out this video http://www.youtube.com/watch?v=H7dVd2gOTEY 

Mutual Funds: type of investment

that that pools money from many investors to buy stocks, bonds, and short-term money market instruments.

Bonds:  a debt security (aka I.O.U). When you purchase a bond, you are lending money to a government or some agency and then the government provides you with a bond which promises to pay interest along with repaying the original value of the bond.

BUT KNOW.....

There is a risk in everything that you do! Investing doesn't always benefit you. If they economy were to go downhill (like the Great Depression) you would lose your money!!!!

Everyone hopes that when they invest they hope to make money. As TIME goes on, your investments generally will grow or gain interest. That's why people keep their stocks for many many years!

Check out DOW!
http://money.cnn.com/data/markets/dow/

So how is a savings account different from investments?
Basically, in a savings account, that's YOUR GUARANTEED money. You aren't getting a loan or ownership in any company.

Basic tips for investing:

1. Hold your investments for a long time.

2. Don't spend your retirement investments if you need some extra cash.

3. Invest regularly

NEWS! Stocks don't always do well, even in popular stores!
Look at this article! http://www.reuters.com/article/2011/05/20/us-gap-idUSTRE74I6X720110520







Sources:
http://www.investinginbonds.com/learnmore.asp?catid=46&id=2
http://www.investopedia.com/dictionary/default.asp
http://news.morningstar.com/classroom2/course.asp?docId=145666&page=2&CN=COM
http://www.wellsfargoadvantagefunds.com/wfweb/wf/retirement/start/tips.jsp

Personal Budget

As us Americans are struggling daily with the economy, its now more important than ever to HAVE A BUDGET!!!
But if you must spend...
It is okay but make sure you balance your fixed and flexible expenses:

• Fixed: payment every month-- bills
• Flexible: payments on other things in life- entertainment, clothes

But it is also essential to SAVE your money!!!!
Putting your money in an savings account will not only help you avoid debt, but you can get interest on your money!

• Simple Interest:determined by multiplying the interest rate by the principal by the number of periods (based on originally principal)

• Compound Interest: accumulated interest of a principal deposit, loan or debt (interest on interest)

Learn more:  http://www.atg.wa.gov/teenconsumer/finances/compound_interests.htm 


My advice to you..... put your money in a savings account!  And maybe even invest in stocks! In the long run, its more convenient for you and you'll make more money!


 ATTENTION COLLEGE STUDENTS! Having a hard time managing your budget?
Click here for some advice from NY Daily News!
http://www.nydailynews.com/money/2011/04/07/2011-04-07_financial_literacy_key_to_successful_transition_to_college_with_financial_aid_me.html



ATTENTION PARENTS! Want to know how to teach your kids how to save money?!?!?!?
Watch this video!
http://www.youtube.com/watch?v=askEIFVMY2c




Sources:
http://www.investopedia.com/dictionary/default.asp
Wandzi's notes

Retirement

Nearing retirement and have questions? Or just completely clueless when it comes to social security? Well I'm here to help!

First off....what is social security?
Social Security is a US federal program of social insurance that benefits retirement and disability income, Medicare/ Medicaid, and death through collection of Social Security taxes.
The amount of retirement income someone will receive is based on their average wages earned over their working career.

So how can you prepare for retirement?
You can start an....
IRA (Individual retirement account): an investment tool that allows people to earn funds for retirement. The account is only your OWN money.
 OR
401(K) Plan: an investment plan that is through your work of which YOU and YOUR EMPLOYER can contribute to the plan.

Still confused about 401(K) Plan?
Watch this video http://www.investopedia.com/video/play/understanding-your-401k

You may have heard that Social Security is struggling and that our young generation may not have the same benefits when we retire. This is because social security requires a lot of money and there's not enough workers exist to provide adequate benefits to the rapidly aging population. (More money going out, and less money coming into the program)

So its important to invest in retirement funds ASAP rather than later, because who knows what social security will be like when we all are old and we should prepare ourselves to have money.$$$$$$$



 For more Social Security Help....check out this news article for some more great advice!
http://blogs.smartmoney.com/encore/2011/05/16/3-best-resources-for-social-security-help/?zone=intromessage

Sources:
http://www.investopedia.com/
http://www.aarp.org/work/social-security/info-12-2010/top-25-social-security-questions.html

Buying a car

Process of obtaining a loan

• Contact a banker
• Have them review your debt and previous loans (make sure they are paid off)
• find out how much your CURRENT car is worth as a trade in
• Determine how much of a down payment you can make
• Apply somewhere where you get the BEST rates
• Wait for your application to be viewed (may take awhile)

 

A down payment on a home is crucial >>>

• Larger down payment will result in a lower payment
• Reduce the size of loan if you pay more every month
• The longer the loan, the more you will pay in interest

Basically... The bigger the down payment, the less you are paying essentially! :)

TIPS TO BUYING A NEW CAR >>
VIDEO : http://www.youtube.com/watch?v=FQEAFGd_-JM
NEWS ARTICLE : http://www.bestofneworleans.com/gambit/car-buying-tips/Content?oid=1584249


Three things to know when buying a car >>>

1. Set a target price, and stay within your budget no matter what!!
2. Pay back your loan!!! (or pay in cash).
3. Get a good down payment, and good rates

Why does the value of a car change over time?

It changes with buying a car because... basically the value of a car decreases from when you first bought it. And over time, they get better and people do not want to buy them for as much as a new car!! :)

Credit Cards

• Charges on credit cards include: interest Rates, APR, late fees, and over charge fees.
• When applying for credit cards, make sure to compare this charges when making your decision as APR/Interest rates can range from 0%, to a shocking 40%. 
• A lower APR leads to better deals, which means an increase in your purchasing power.

 

• Although it's known for credit cards to be bad, building credit through using a credit card RESPONSIBLY, will really help you out in the long run when purchasing bigger items.

Pros of owning a credit card

-Convenience and easy to use. The card allows for online shopping and saves time when it comes to paying for your item. Customers like them for the feeling they can buy anything, without paying it back.

Cons of owning a credit card

They can become dangerous to people who don't use them responsibly. It can become TOO easy to spend with a credit card, and it will rack up quick. If you are not paying back the company, you will become in bad debt and it will be difficult to get out of it.

There's many ways to apply for a credit card:

• Online (most common)
• Phone
• Go into bank

Make sure when applying for a credit card you compare interest rates, APR, any penalties, and anything else that will affect your AND YOUR MONEY!!!

1. Learn to shop for a credit card with low interest rates and a low APR
2. NEVER overcharge your credit card, it will only lead to future problems
3. Pay back your money you spend to maintain good credit :) 

So how much credit card debt are we actually suffering from? >>>

 http://www.news.com.au/money/money-matters/credit-card-balances-climb-to-50-billion-rba/story-e6frfmd9-1226056550605