Resources :D

Naturally, all this information had to come from somewhere (NOT from out of the butt)...

Picture URLs

Piggy: http://invest-money-stocks.com/wp-content/uploads/2009/08/free-online-virtual-worlds4.jpg

Expenses: http://www.st-aug.edu/Administration/images/expenses-fr.gif

Trade and Specialization: http://www.harpercollege.edu/mhealy/ecogif/trade/aaspec.gif

Different Currencies: http://www.mzv.cz/public/1c/37/84/172215_14907_ceske_mince.jpg

APR: http://www.reinvestology.com/wp-content/uploads/2008/11/2298394906_6c4426d611.jpg

Credit Cards: http://www.careonecredit.com/debt-free-u/Portals/0/credit-card-scam.jpg

Retirement Funds: http://www.motifake.com/image/demotivational-poster/0902/retirement-plan-retirement-plan-american-gothic-demotivational-poster-1233994795.jpg

Retirement: http://jasonjeffrey.files.wordpress.com/2010/08/favre-retirement.jpg?w=607&h=490

Text Resources

Retirement: http://www.squidoo.com/retirementresources

Social Security: http://en.wikipedia.org/wiki/Individual_Retirement_Account

401(K): http://en.wikipedia.org/wiki/401(k)

IRA: http://en.wikipedia.org/wiki/Individual_Retirement_Account

Compound Interest: http://en.wikipedia.org/wiki/Compound_interest

Credit Cards: http://money.howstuffworks.com/personal-finance/debt-management/credit-card.htm

All Videos were obtained from YouTube!

Our Semester in AP Macro

Macroeconomics was probably one of the most interesting classes to have taken this semester, if not in all of high school so far.  It was definitely challenging with so much content and only a semester to not only learn, but master it, but somehow here we are today, still alive.

Knowing how the economy functions, as well as the importance of trade between countries is arguably the most important part of the class because it is likely the only part of economics that is guaranteed to not only affect someone, but also a part of economics that they can actually interact with.  While other topics like fiscal and monetary policies, as well as aggregate supply/demand and RGDP are important to understand, there's not really much you can do about them; understanding how and why they work makes it easier to understand the actions of the government officials, but more likely than not, you're not going to be able to do anything about it, unless you're going into a field that actually handles those things.

But it's far more likely that you'll take a trip outside of the US, or that you'll be buying things from different countries, and it's important to know not only the concepts of such things, but also how you can make the most out of that knowledge, whether it be making good travel decisions, or buying something from one country instead of another, and so on.

There are lots of different currencies in the world today.

Some of the important topics that go along with trade are exchange rates.  You can't buy goods at a store in a foreign country with American dollars, instead you have to use the country's local currency, and in order to do that, you must essentially buy their currency with yours.  However, because not all economies are the same, different currencies have different values of worth; one US dollar isn't going to be worth the exact same as one euro.  By knowing exchange rates, you can make good decisions about where to travel if you're somewhat tight on vacation money, or at the very least, know how much you're really going to be spending in a different country.

Trade let's you make the most of your resources.

It's probably safe to assume that not everything you own is from the US.  In fact, the things that were made in the US might actually be in the minority of things you own.  Trade is important because it lets countries make the best use of their scarce resources, and then trade those goods for other basic necessities and luxuries that another country is either better at making, or sacrifices less for making it.  The US wouldn't be able to export as many goods if they had to also provide clothing, utensils, and a wide variety of foods for the entire country.  That's where trade comes in.  But what's important for us individuals to know about trade is that goods that have less of an opportunity and production cost to create also mean cheaper prices at the store.  So knowing where you're getting some of your goods can be vital to making sure you're getting the best deal available.

A quick video about Russia potentially opening up to world trade
And a news report about the state of oil trades (from a year ago)

Retirement

Retirement is a goal many people have in life.  To be retired means that you don't have to work anymore, and you can just spend the rest of your life... well, living life.  However, there are a lot of things to remember about retirement, just as there's a lot of important things to know about things that can be done now that will work towards the goal of retirement.

IRA and 401(K): 401(K) are a type of retirement fund that allows the investor to start withdrawing from their account when they've reached the age of 59 and 1/2 years.  Instead of paying taxes on it immediately, the taxes are taken out when attempting to withdraw money from the savings account.  There are numerous limits and consequences involved with adding and taking money out of this account prior to reaching the required age.  The term 401(K) refers to International Revenue Code in the United States.  Other countries have different methods.
An IRA, or Individual Retirement Account is almost exactly what it sounds like: it's an individual savings account for retirement, and you put in money for it as time goes on.  It is possible to have both this and a 401(K) savings account.

Social Security: Social Security is one of the many thing that the taxes you pay go towards.  Social securities are a set of funds that go to the assistance and well-being of the elderly, disabled, needy, or unemployed.  Going into retirement and aging, social security are one of the many things that will assist you in keeping up with the bills that you no longer have an income to maintain, and as time progresses, no longer have the physical wellness to obtain.  While this tax can hurt your savings currently, assuming it isn't abolished, it is one of those things you'll likely be thankful for, as your retirement funds will only be able to go so far: and once you use it up, it's gone forever.  And with life expectancies likely being higher by the time you retire, the likelihood that your retirement funds won't last the remainder of your life becomes increasingly likely.

Importance of Savings: As stated above, you'll only have so much money to live off of when you finally retire.  Beginning to save now is vital, as every penny you save now is more money that you'll have to spend when you're no longer able to maintain a working lifestyle.  Remember your personal budget?  Well, instead of making sure you have enough money for a few months, your retirement fund is going to need to be large enough to last you years, if not decades.  Remember, when you finally start using your retirement funds, you'll probably want to at least enjoy the remaining life you have - so start saving now so you'll be able to prosper in the long-run.

Small text: Ha! I'm Glad You Asked! As a matter of fact, we've been in contact with a gentleman from Africa who is transferring eight million dollars into our bank account as we speak.

The Issues Today: Again, as stated earlier, issues regarding retirement today are simply just not having enough funds to last the remainder of your life.  With life expectancies rising, and people not being able to save enough money to maintain a decent living standard, retirement is becoming increasingly difficult because people just can't afford to stop earning an income without risking running out of funds before death.  And factoring dream vacations and emergency medical expenses, the already small retirement fund just isn't large enough to take care of people.  It's vital to have plans as well as emergency sources of money when it's needed in order to assure that life while retired isn't just a big worry for when the funds will dry up.

How to Start A Retirement Savings Account
And a news article (one that's actually from this year...) about Social Security
A Text Source for Starting Retirement Savings

Credit Cards

Credit cards are a little something that more and more people have.  Credit cards allow people to do things that they normally wouldn't have been able to do with cash alone, like buying a house or car.  When you use a credit card at a store, it essentially puts it into an "account", which you'll be expected to pay back at a later time.  Here is some more basic info about credit cards.

Interest adds up the longer you take to pay off the loan.

Interest Rates and the Annual Percentage Rate: Like any firm or individual that gives out loans, interest is their way of making a profit.  When you use a credit card, you're essentially instantly taking a loan from the credit company.  When you pay this money back, you'll often have to pay interest on it; the amount changes from time to time, as well as from company to company.

Overcharge and Late Fees: There are consequences involved with credit cards.  If you fail to keep track of how much you're spending, or if you fail to pay off the credit card before a certain date, you will often find yourself having to pay even MORE back; remember, the credit company you got your card from is expecting to get their money back, and the longer they have to wait, the worse they'll make it for you.  Don't let the temptation of money given by a credit card be what takes away your house.

A good reason why you should keep track of your cards...

Getting a Credit Card, the Risks, and Tips: To get a credit card, you'll have to check out some credit bureaus and companies.  Make sure that you make a list of credit options and choose the one that not only gives you the best rates, but also has the benefits and payment plans that best fit your consumption style and needs.  The Federal Reserve Board's website is a great place to look and get some information from before signing onto a credit card plan.  Some natural risks that occur lie with identity theft, as well as malicious people stealing your credit card information and using it for their expenses - at your expense.  It's a good idea to always keep track of your receipts, keep your credit card info as secret as possible, avoid using it over the phone or online whenever possible, and to always keep backups of your credit card information, in case it gets lost or stolen.

For more in-depth information on credit cards, this article has a lot of information about it:
This article has a lot of in-depth info about credit cards
Credit Cards in the News
And a video about how to keep credit card information safe

Personal Budget: The Basics

One of the most important aspects to maintaining a good personal budget is knowing the basics.

First off, you need to know the different types of expenses:

In the real world, you can't save everything you make.

Fixed Expenses: These are expenses that you get a normally recurring basis, whether it be from day  to day, month to month, or year to year.  Mortgages, rents, and such things would be included in this category.

Flexible Expenses: These are expenses that can be avoided and while they are often important, they are technically not mandatory or avoidable. Expenses that go towards things you want but don't need will almost always go under this category.

So that broadly covers the two types of consumption spending.  On the other side of things, there's savings and investment which are also important to manage when trying to achieve economic well-being.   When you put money into or loan from a bank, interest is often involved.  Interest is extra money that goes into a savings account as a type of "thank you" gift for investing your money into a bank, or if you're taking a loan from a bank, it's essentially the profit the bank makes for letting you borrow some money.  For every period (whether it be by day, week, month, etc.) interest is charged to a loan or investment.

Simple/Compound Interest:  Simple interest is the type of interest where the the interest added to the balance is constant with the interest rate: it always uses the initial value loaned or deposited when factoring interest at each period.  Compound interest, on the other hand always uses the current value of the account when factoring at each period, or 'compounding'.  So the compounding will add the same amount as it would with simple interest, but the next time it compounds, it will use the value of the last compounding instead of the initial value.

Managing your money can really be as simple as this.

So, knowing the basics of budgeting, the important thing you should remember is that you must find a balance between your spending and your saving, such that you are not spending too much of your money, but at the same time, not saving so much that your life at the current moment is unbearable.  It is okay to spend some money on luxuries so long as you're careful that you don't overdo it.

I would recommend that when managing your budget that you make sure you can take care of required expenditures for the next few months in case your source of income decreases unexpectedly, then split what remains between savings and investments, emergency expenses, and leisure expenses.

An article focusing on banking and saving
And a little video about starting to manage your budget