How can economics benefit your life?

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mkoren | Middle School Teacher | (Level 3) Senior Educator

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Economics has a huge impact on your life.  Everything you do has an economic basis to it.  When you decide how to use a scarce resource such as time or money, you are employing economic concepts.  Understanding economic principles allows you to have a more complete understanding of historical events.  Virtually every significant historical event has had an economic component to it. Both world wars had economic causes behind it.  The decision to establish colonies was rooted, in part, due to economic principles. The price people pay for gasoline is related to economics.  Thus, if you know economic concepts and principles, you will have a greater understanding of why certain things have happened in history.  By understanding economic concepts, you will be in a better position to make sound economic decisions in your own life.  If you understand how compound interest works, and why it is important to start saving money at an early age, you will help set your life on a path to financial success.  So many people don’t understand economic concepts.  As a result, they end up making poor economic decisions that create financial problems for them.  In my opinion, understanding economics is as important as many of the daily things you do in life!

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