Economics and Financial Planning Skills

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Assignment 1: Economic Basics

(24.0 points)
1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points) I have many things that financial planning skills can help me but I have to two that I want to talk about on this question. One thing that financial planning skills can help me with is to get my money together for college. Having financial planning skills can help me so I don’t end up having to make loans. One other thing that financial planning skills can help me do is get enough money to satisfy my needs and wants. That mean I won’t have to worry about needing something because I’ll be able to get with the money I made.

2. List two examples of goods you have purchased in the past or may purchase in the future. (Complete sentences are not necessary. 0.5 points) two goods that I might consider buying in the future are a car and house. The reason for that being said is because car will get me to place to place and a house would put a roof over my head at night.

3. List two examples of services you have purchased in the past or may purchase in the future. (Complete sentences are not necessary. 0.5 points)Two services I probably purchase in the future are a car maintenance and a babysitter. The reason for that being said is because i need to get my check every year to make sure i avoid any problems and such. The reason for the second thing is just in case i wanted to have kids one day I will need someone to watch them why I’m at work.

4. One of the functions of money is as a store of value. How does inflation affect money's ability to store value? (3-6 sentences. 2.0 points) The word inflation means the increase in prices and the fall in the purchasing value of money. Inflation can affect it because it can decrease the value of money over time. If inflation increase it is wise to invest the money iin...
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