. What is inflation risk?
Inflation is the rise or fall of a price by a certain time. It could something right now then be raised tomorrow or fall tomorrow. This makes it difficult to buy items at a certain time because everyone wants to save money, so if they hear that its 900$ tonight and tomorrow it’s going to be 1200$ then you’re going to want to get the item tonight. Black Friday is a big example of inflation risk.
2. What are opportunity costs? Give an example of an opportunity cost.
It states that “Opportunity costs are things that you give up when you make a choice” I feel like this is saying that you can only get one thing, so if you decide one item then the other one is the one you gave up. So an example could be saving your money, …show more content…
If you are in partnership usually the work is split up into two. Also another advantage is doing this process helps the problem be seen from different angles. A disadvantage is that this process takes time and could end up disagreeing with one another which then could lead to competition.
4. Why is it important to try to make financial decisions without emotions?
There’s an old saying like emotions can cloud ones judgment which is true. If your emotional at the time then your decisions could be a little off from what you would normally do. I think I can say everyone has made a bad decision when they was emotional, I know I have many times, still do.
5. What are some of the resources that families and individuals can use to reach their financial goals? Why is it important to take stock of these resources when planning financial goals?
Well families and individuals can do the same thing, they can try to cut back on stuff they buy when they go to the store. If you have a recipt from last time you went to the store you could take that and look at it and determine things that you could live without for a while. Families when the younger ones get older they could start working and put money into the house or basically pay their parents a small fee every now and then just to help out. It’s important because it could get you out of a financial hole if you are stuck in one, they help you reach your
Inflation is the rise or fall of a price by a certain time. It could something right now then be raised tomorrow or fall tomorrow. This makes it difficult to buy items at a certain time because everyone wants to save money, so if they hear that its 900$ tonight and tomorrow it’s going to be 1200$ then you’re going to want to get the item tonight. Black Friday is a big example of inflation risk.
2. What are opportunity costs? Give an example of an opportunity cost.
It states that “Opportunity costs are things that you give up when you make a choice” I feel like this is saying that you can only get one thing, so if you decide one item then the other one is the one you gave up. So an example could be saving your money, …show more content…
If you are in partnership usually the work is split up into two. Also another advantage is doing this process helps the problem be seen from different angles. A disadvantage is that this process takes time and could end up disagreeing with one another which then could lead to competition.
4. Why is it important to try to make financial decisions without emotions?
There’s an old saying like emotions can cloud ones judgment which is true. If your emotional at the time then your decisions could be a little off from what you would normally do. I think I can say everyone has made a bad decision when they was emotional, I know I have many times, still do.
5. What are some of the resources that families and individuals can use to reach their financial goals? Why is it important to take stock of these resources when planning financial goals?
Well families and individuals can do the same thing, they can try to cut back on stuff they buy when they go to the store. If you have a recipt from last time you went to the store you could take that and look at it and determine things that you could live without for a while. Families when the younger ones get older they could start working and put money into the house or basically pay their parents a small fee every now and then just to help out. It’s important because it could get you out of a financial hole if you are stuck in one, they help you reach your