Starting a new unit was refreshing but at the same time confusing. We've started finance which is a partial section of our business course. Because I have no idea what finance is, or even the basics of it, I have set a goal to myself that even if I don't understand what we are doing I need to be curious. | SHOULD I INVEST IN THIS? The first lesson we had was a bit of chinese for me, at least at the beginning because I had no idea what we were talking about. For me, finance was defined as something related to money; I was close but in a really basic scale. Finance is basically "The management of large amounts of money, esp. by governments or large companies". |
WIthin the class there were about 4 out of 12 people that had an idea of financing, but the majority of us had to start from nothing. As soon as we began the discussion everyone was asking either broad or specific questions, were at the end the answers were useful for everyone: How the stock market works? How to invest, in what? What is financial economics? What are Interest rates? Market efficiency? Bank term loans? Since everyone had different questions we came to an agreement and we selected important topics we could touch throughout the unit, because if you want to understand finance you need to know a little bit of everything. | Important key words to keep in mind: 1. Dividend: as a stock does well it pays you money 2. Capital: equity or money that a company has 3. Barter: trading (give you something for what you make) (use money to standardize trade) 4. Debt: amount of money you owe to some type of creditor (house, school, credit) 5. Asset: everything that a company has that they can sell and earn money for (valuable) |
We decided upon our ideas what we wanted to study, but before understanding what I was choosing we learned some important information and interesting facts. Would you believe me if I tell you that an average american is in debt for $53,378. Or even that people who might seem millionaires are struggling though debt issues because of credit or college loans?
To be successful in life it is really important to understand how money works, and in between options which one is the best to choose. When it comes to investment there are two important terms, risk and reward:
a. The greater risk the greater the reward
b. The lower the risk the lower the reward
c. The lower the risk the lower the lost
Even though we touched a lot of topics related to finance, I was not completely lost. Once I started gaining interest for learning I was an inquirer so I started asking questions. I understand that many people give up when they are not comfortable with a topic, but that is the worst thing you can do. The best way to learn is to keep on trying and be inquisitive, because if not you will never find the love in a subject. I look forward to understanding finance and exploring it the most I can, so that I'm hopefully successful when I'm out to college and I need to control my own money,
DON'T THINK OF MONEY AS EVIL, THINK OF MONEY AS NECESSARY
To be successful in life it is really important to understand how money works, and in between options which one is the best to choose. When it comes to investment there are two important terms, risk and reward:
a. The greater risk the greater the reward
b. The lower the risk the lower the reward
c. The lower the risk the lower the lost
Even though we touched a lot of topics related to finance, I was not completely lost. Once I started gaining interest for learning I was an inquirer so I started asking questions. I understand that many people give up when they are not comfortable with a topic, but that is the worst thing you can do. The best way to learn is to keep on trying and be inquisitive, because if not you will never find the love in a subject. I look forward to understanding finance and exploring it the most I can, so that I'm hopefully successful when I'm out to college and I need to control my own money,
DON'T THINK OF MONEY AS EVIL, THINK OF MONEY AS NECESSARY
FINANCIAL LITERACY
What I understood of this first idea was: " The ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being".
We talked about financial literacy for a small period of time, but in this opportunity I was able to understand the difference between credit (been taken out of your account) and debit (been put into your account) as well as income (personal) and revenue (a business). After being comfortable with this terms, I had to create a chart with my expenses and my possible expenses for the week, basically to have an idea of how it was like to manage my own budget
It might seem really easy, but once you do it you need to calculate and be aware of the amount of money you consume because it could affect you afterwards, such as people who consume when they can't and they start being in debt.
What I understood of this first idea was: " The ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being".
We talked about financial literacy for a small period of time, but in this opportunity I was able to understand the difference between credit (been taken out of your account) and debit (been put into your account) as well as income (personal) and revenue (a business). After being comfortable with this terms, I had to create a chart with my expenses and my possible expenses for the week, basically to have an idea of how it was like to manage my own budget
It might seem really easy, but once you do it you need to calculate and be aware of the amount of money you consume because it could affect you afterwards, such as people who consume when they can't and they start being in debt.