Credit Reports and Scores

This week has been about credit, and has been vitally important. We learned about the different types of credit, and how the credit report can document basically everything from high school on. We learned it is very important to make the right decision early on in life to prevent decreases in credit score later on. This credit score will affect many things a person do later on in life, such as getting loans from banks, buying a car and starting a job. The ideal credit score is Very Good or Excellent. A bad credit score will prevent you from getting basically everything. I'm actually glad this class is required, as it really teaches us important information to know later on in life.

Budgets and Savings

This week has mainly been about budgets and managing bank accounts. We learned that it's important to create a monthly budget for ourselves to help us manage our money and avoid overspending. In order to create a budget, we must pay yourself first, meaning the savings, then, list all our income resources and then our expenses. (Usually, the expenses is a much more detailed list than the income D:) The two then should equal each other at the end, more or less. These past days have, again, been vitally important for our future, as we are learning to make our money work for us. We are learning of ways to obtain more money than we had at the beginning, simply by leaving it alone in a secured bank account. So, the morale of the story is, pay yourself first, and keep yourself, and your money, well-organized.

Banking

This week mainly revolved around banking. This week was highly important as it teaches us valuable life skills that we will use later on in life. We learned how to write checks, how to mail checks, and how to write a check register. It was actually pretty fun to handle all the 'money' and do real-life transactions such as checks and stores and dealing with the hardships of not having enough money to pay off bills. It'll be interesting to see how the semester continues, and how everyone fares with their own money and problems.

Developing Countries

This week, we started to learn about developing and developed countries. We learned that to be a developed country, the nation will have a high GDP, a high standard of living, and have a market economy. A developing country has, obviously, a lower GDP, a lower standard of living, and a less developed industry. I think it's important that we know about developing countries because a good portion of the world are still developing nations. Developing nations are vital to global economies and even to a developed nation's economy. We rely on their resources and labor to aid our own country, as they rely on us for money and necessities. 

Stock Market

So in the few days that I was actually in school, we played a game that was focused around stock markets and stock exchange. Personally, I thought it was an excellent chance for us to experience the many risks and options the stock market provides. It's slightly confusing to play, as if a company is in the news, it doesn't necessarily mean that that's a good thing. Also, the whole idea that to buy cheap and sell high is confusing to me. Yet, I still think it's a good idea that the class plays this game as it prepares us for choices later in life, and teaches us the basics of the stock exchange market.

Supply

Supply! The opposite of demand. We learned that a supply curve will always slope upwards, and the 6 factors of supply, among other things. So think of it when we go out to buy something, let's say Starbucks as an example. You go out to get a large cup of coffee or whatever you call it, and it costs $6.00 for a single cup. A person would say the supply for Starbucks is high, because it is popular, and expensive. The quantity demanded is also high, as I see so many people walking around holding Starbucks. The price between supply and demand balanced around 6$. Now for something which has a less price, because the quantity supplied is lower would be McDonald's, and their McCafe or something. Due to the fact that consumers are out for their own self-interest, suppliers have the ability to manipulate prices so consumers can come buy their goods and services. It depends on the producer. Demand and supply depend also on one another, for the self-interest of the community.

Inelastic vs. Elastic

This week has been about elastic products and inelastic products. To be an elastic product, the change in price has to result in a relatively large change in quantity demanded. As for inelastic products, the change in price has to result in a relatively small change in quantity demanded. It disturbs me a bit how the economy can manipulate the prices of an inelastic product, and no matter the price, it is still a valuable necessity and the community is influenced to buy it. But I suppose that's how the economy gains its money.