4 Reasons to Take Finance and Economics in College

4 Reasons to Take Finance and Economics in College 4 Reasons to Take Finance and Economics in College 4 Reasons to Take Finance and Economics in College Young people are coming out of college with a lot of knowledge about math, English, and their particular major field of study but they often dont know how to manage their own finances or know how the world of finance and economics works in the United States or globally. Although these classes are not required for students who are studying outside of these majors, it’s something that every student should add to their class roster need more advice on which classes to take? Talk to your Irvine private college tutor. 1. Understanding your own finances Its important for students to be able to learn how to complete basic but essential tasks such as balancing their own checkbook or bank account, understanding the difference between a checking and savings account and what they are for, knowing the difference between a long-term CD and a liquid advantage money market account, overdraft protection, debt consolidation and so on and so forth. If any of these terms are even slightly unfamiliar then students definitely need to be taking college finance courses and should also sit down with their personal banker (READ: Tips from an Irvine college tutor: Warning signs of a college dropout). 2. Understanding the local economy Many students do not understand important factors such as cost of living, standard of living, market value of a job title and other important factors when deciding where to live after college and which companies to seek a job with. Understanding the local economy can also help students determine which major may be most lucrative for them. For instance, a new grad living in Southern California will likely have higher than average job opportunities but much higher than average cost of living. This means that they will be more likely to have a job, either full or part-time, than their counterparts in other states but still may not be able to pay the rent or other bills due to high cost of living. Additionally, moving to a lower cost of living region may not be as simple as it seems because there may be no jobs available at all. The key is to find a balance between cost of living and salary, which is much harder than may first appear. 3. Being knowledgeable about the American economy People who have an in-depth look at the American economy and its history will better understand not only their finances but the economic outlook of their entire nation. This can affect everything from voting for a political candidate to choosing to rent vs. buy a home to making personal and retirement investments. People Who play the stock market or invest in real estate ventures that they dont truly understand will often find themselves in financial trouble if anything goes wrong (think job loss).   If terms such as zero down, subprime loans, balloon payments, and conventional loans are at all unfamiliar, a student is probably in need of a basic Econ class. Studying the economic history of the United States can also help students understand where our country got into financial trouble in decades past and how to recognize economic trends that may repeat or cycle over time. 4. Understanding the global economy Its easy to think that the United States has an isolated economy; however this is not true. If the European Union gets into economic trouble, the US will likely have issues as well, and if the Chinese market goes down, the US may experience difficulties with import and export. The entire world is connected at least to some degree from real estate to oil prices to job availability. Understanding how our global economy is truly connected will help a young person understand, both in theory and in practical applications, how the world economy can affect their personal finances and their future (READ: Study Abroad 101: Staying Healthy). Bottom line Although it may be attempting to take easy elective classes in college, Econ and Finance should be at the top of every student’s list regardless of their major field of study. Although the assignments will be time-consuming and the exams will be difficult, these courses could potentially save a student thousands of dollars over time by knowing how to make   good investments and good personal finance choices in their future. Heading to college this fall? Make sure you take advantage of an Orange County summer academic tutor to make sure youre ready to hit the ground running. Call us before the summer is over! All blog entries, with the exception of guest bloggers, are written by Tutor Nerds. Are you an education professional? If so, email us at pr@tutornerds.com for guest blogging and collaborations. We want to make this the best free education resource in SoCal, so feel free to suggest what you would like to see us write.