Econ:

The most important thing to learn in Economics is how to be wise with the resources you are given. Whether it be finding a cheap lunch at the supermarket, instead of eating at Burger King. Economics also gives you a plan for the future. It teaches you how to save, invest, and become an entrepreneur. When it comes down to it, it teaches you common sense. Which comes into play every single day.

Retirement:

IRA, Individual Retirement Account = savings plan that offers tax benefits. 401K = employer sponsored plan that allows a person to save while employed. In other words, you may have a special savings account specifically for retirement. According to: "wordnetweb.princeton.edu" Social Security includes old-age/survivors insurance, with unemployment insurance and old-age assistance. After all, everyone want to relax and know that they have money to live on in the later years. If you plan ahead and save now, there's a better chance you could have an easy retirement.

Buying that new BMW?

Buying a new car is expensive, and that's why loans come in handy during this process. Getting a loan depends on good credit, plus a little money as downpayment. This downpayment secures your loan. Over time, depending on the time span you can afford, you will pay back that loan with interest. Buying a car is a neccessity, and you can take comfort in that fact that your car will be valuable for some time. If there's one thing you should not do during this process is not doing your research. Take some time to look around and find the best deal before spending. Also, be sure to bargain. Business, especially with car loans, can take a little negotiating according to "it.tmcnet.com".

Invest:

Let's get down to business and chat about an investment: stocks. Stocks allow you to be a part of a larger company and can possibly make you a bit of money. Earning that cash simply depends upon the company's fluctuation/contraction in the stock market; and whether you sell your stock for more money that you originally bought it for. This can mean risky business, but only if you don't play your cards right. Mutual funds are a bit different: they are a collective managed type of investment. Each of these are considered 'short term' money; or money gained over a short amount of time. Bonds are established over time within a savings account. ('Long term' money, gained over a longer period of time.) Slowly the money you invest will gain interest, but the money must stay safely in the savings account for a set amount of time. When it comes to investing you should use your head, but remember everyone loses sometimes. Look at this article from "Smartmoney.com": "Dow Pares Losses, Finishes Above 10000." Also, watch this video about bonds: "How to Secure a Surety Bond: Investing & Personal Finance Tips | eHow.com".

Gimmie Credit:

Ah, the infamous credit cards. The luxury of buying now and paying later. But, did you know that these card come with hidden expenses?! Oh yes, they do. They are piled with late fee's and interest rates that can kill your budget. Your 'APR', or your average interest rate, is the amount you pay each month to keep your card. If you are late paying that lovely monthly bill you will be charged a late fee from $40 to infinity it seems. Thanks the world wide web, now a days you can apply for a credit card online. Now don't get me wrong, credit cards can be a good thing if you use them correctly. They can just as easily allow you to achieve a good credit score as a bad one. Just remember to watch for those hidden charges, don't spend out of control, and pay on time.

Personal Budget:

Money makes the world go 'round. So how do you keep your spending under control? Well my friends, you make a little thing called a budget. Within this budget there are two expenses, fixed and flexible. Fixed expenses you must pay each month, no exceptions. Flexible expenses you may spend however you wish. (Although, it would be smart to save your extra money.) Speaking of saving, there are different kinds of savings accounts. The first, 'simple interest' stays true to it's name, it's simple. Interest is based upon only the amount borrowed. 'Compound interest' is like back to back simple interest contracts. It's based upon the amount borrowed, plus past accumulated interest. As I previously stated, it's good to save money for unexpected expenses. Such as car repairs, or a surgery. Remember: smart budget = smart people!