more sense Money it makes sense to know about it People use money and think about it every day How much money does this cost Do I have enough money to buy that Should I save my money for something All of the answers to these questions relate to understanding how money works N THE EINITED STATES OF AMERICAN Money Matters Like it or not money matters It matters whether people have a lot of money or just a little How much money people have and how they manage their money both affect the life choices they can make A decision today such as saving money or spending it can affect what they can do months and years from now D ND STATES 09021265 B E 09 ON DOGGH Asking yourself What does having money let me do can help you develop good money sense The most powerful force in the universe is compound interest Albert Einstein Nobel prize winning scientist
Money One Systems ANNAN To have good money sense people need to understand some things about the money system A good starting point is understanding what is meant by the economy the financial system financial markets and banks The Economy Financial Markets The economy refers to all of Financial markets are the part of the buying and selling of goods a financial system where people and services that happens in a buy and sell financial securities particular place such as a city such as stocks also called or a country shares and bonds The Financial System Banks The financial system is the way Banks store money for people in which people businesses and who do not need it immediately governments work together to and lend this money to other create borrow and lend money people who need to borrow it to do something Understanding how banks work is an important part of understanding how money is
It Is the WNS Economy When people talk about the economy they are referring to the buying and selling of all goods and services Whether large or small all of these actions put together form the economy Whenever you buy goods from a store you are participating in the economy Participating in the Economy People participate in the economy all the time How can they tell Any time a person gives or receives money he or she is participating in the economy Around the world this happens billions of times a day Different sizes of Economies When talking about an economy we have to know where the buying and selling takes place People can talk about the economy of a city a state a region a country or even the whole world I a ON BY FACT The word if economy comes from the Greek word oikonomia which means household
A ukelele is an example of a good that can be bought and sold A music lesson is an example of a service I Goods and Services Every transaction in an economy involves goods services or both Goods When people talk about buying and selling goods they mean physical items If you can touch it or point to it it is probably a good Examples include everything from bananas to airplanes Someone makes or grows the goods then transports them to where they can be bought People can then buy these goods Services When people talk about buying and selling services they mean things that people do for each other Services are usually actions such as cleaning teaching or healing You can touch the person performing the service but you cannot touch the service
