Building the next “Big Thing”. Being your own boss. Getting the full rewards for your work. There are a lot of reasons to start a business (along with lots of risks), but taking the plunge is a step every entrepreneur has to face if they plan on striking out on their own.
“Credit” is when you have the ability to use borrowed money. This can come in many different forms, from credit cards to mortgages. There is a wide range of ways to use credit, which means that it is often a challenge for beginners to learn all the different ins and outs of using credit.
Credit reports are documents that keeps a record of (most) of your regular bill payments. They are not to be confused with credit scores, which is are single number. Having good credit reports are vital to demonstrating your financial stability, which is important for activities like applying for a mortgage.
Consumers, aka every individual who participates in the economy, have a rights and responsibilities. Depending on your state and the transaction, you might have a wide range of rights or very few. Believe it or not, with the rise of social media, your most important right might be the “right to complain”!
As a young person, thinking about saving for retirement seems like a world away. However, being able to save enough for retirement means people have to start much earlier than they think.
“Labor” is how much a person works. It is the use of time an exertion of effort to produce something of value. Generally speaking, the more valuable a person’s labor is, the higher their wage.
“Unemployment” is a major economic indicator measuring how much of the working population is currently looking for a job. Just because someone is jobless doesn’t mean they are unemployed – they need to be looking for work!
“Price Controls” are artificial limits that are put on prices. If the limit is put in place to prevent prices from getting too high, they are called Ceilings. If they are in place to prevent the price from getting too low, they are called “Floors”.
Interest rates are a percentage that is used to calculate how much a loan or investment grows over time. A “Nominal” interest rate is just the percentage on the loan – the “Real” rate subtracts expected inflation
Scarcity refers to the fact that resources are finite – people and organizations need to allocate their finite resources between their infinite wants.