In the first part of this article “mundalyn and the Economics Activity”, I suggested how to approach learning about economics. This first part provides a review of some of the basics of economics, the nature of money, and some of the tools used by economists. The second part consists of several activities that are essential for learning about the subject. I will discuss a few of these in more detail below. The purpose of this article is to introduce an individual to the world of economics and hopefully spark a positive interest in learning about economic issues.
For those who have only basic knowledge of the subject, the first part of this article might seem a bit dry. However, I hope that this review will motivate those who have studied the subject to dig deeper. There are many ways to learn about economics, and this review is just a simple introduction to one of the most important economic concepts.
The first step in learning about economics is to understand money and the process of exchange. All individuals in the US face the same basic economic problems: they need to find ways to make more money to live their lives and invest in things to increase their wealth. Understanding the concepts behind money and why it is produced and spent is the starting point for any understanding of economics. I highly recommend learning at least a little about money and why it is produced and exchanged.
Learning about interest is also important in understanding economics. There are two basic forms of interest: direct and indirect. In economic activity, direct interest refers to what an individual earns above the value of what he or she invests. Indirect interest is what an individual pays to another individual as a return on a loan or other investment. There are many examples of indirect interests, including: borrowing money from a friend to invest in a car, receiving money from a bank to invest in shares, and borrowing money from a spouse to buy groceries.
Another important part of economics is learning to save. Saving is essentially the opposite of spending. It refers to saving for a future need that is not currently being met. Many people refer to money saved as being “in the bank.” While this is true in a sense, it does not accurately represent the savings people have made over time.
When considering the topic of economics, students will likely encounter various uses of interest as well as the effect of saving and spending. For this reason, students need to learn how to develop these skills as a part of their overall learning plan. A review of the previous activities, along with supplemental reading, should be done in order to ensure all students are able . . . . . . to successfully complete this section of their study. In conclusion, learning to do this in-depth is a great way to prepare college students for a career in economics.