The branch of knowledge concerned with the production, consumption, and transfer of wealth is called Economics.
Economics is a very important subject and becomes a base to many subjects. Yet, while it has obvious practical benefits it seems to be rarely taught well or with an eye towards understanding fundamental principles or how they apply in the real world. Economic subject have been taught in theory and in practical it is hardly explained. Economics is taught in schools and higher secondary schools but it real context is still missing. Yet, while it has obvious practical benefits it seems to be rarely taught well or with an eye towards understanding fundamental principles or how they apply in the real world.
Therefore, People are poor at money management.
Reasons to learn Economics
- Money Management: The utmost and the main benefit of learning Economics is money management of course. While the study of economics, in and of itself, will not make you wealthy, failing to learn and apply basic principles of saving and investing will surely keep you poor. Millions of people were raised to believe, and many still do believe, that investing is nothing more than gambling and no more reliable as a way to build wealth and financial security than buying lottery tickets. Still more believe that credit cards represent free money and have already spent their next raise without ever seeing the money. The study of economics is a good first step towards fixing some of these problems both in one’s personal life and in our nation which also suffers from poor economic thinking and planning.
- Value: – Economics as a subject is not a value by itself but it includes way of determining the costs and benefits of trading one value for another. The notion of value is important both in economics and life in general. Economics defines things that have economic values as well as non-economic values.
- Trade-offs: – In real life, people want simple solutions to problems, but actually there are no solutions actually they are trade-offs. Economics highlights this point that there is trade-off between two things. For ex- We can spend more money on groceries only if we are willing to spend less on shoes. Many areas of life involve such trade-offs and economics provides a clear method for thinking through how to make these trade-offs in the best way possible.
- Planning:-Economics is a planning. It covers lot of concepts like trade-offs, demand-supply and graphs showing market mechanics. The concept of Economics are very important in decision making process.
The world is filled with such examples of the failure to think things through beyond the first stage. Good economists see beyond the visible consequences of their actions to the less visible and unintended consequences. While not immediately visible itself, this is one of the most important benefits of the study of economics.