Welcome

There's Always Something to Learn about Money!

Other than learning how to save and be smart when you spend, what else is there to know about money?

A lot! Here are a few money-related concepts to start learning:

Opportunity Cost

You have the opportunity to get something you want. What do you need to give up so that you can get what you want? This question is about money—but it’s also about the time it will take to get what you want and the value of what you’re getting.

Example: You want to get a college degree, and that may take several years. Are you willing to put in the amount of time that it will take? And are you willing to spend the money needed to attend school and buy your textbooks?

Sunken Costs

This is money that you can’t get back.

Example: You buy a concert ticket. If you get sick the night of the concert, you can’t get your money back.

Be careful at how you look at sunken costs. It’s not a good idea—and it can be expensive—to think, “Well, I’ve already spent $100, so what’s another $25.” Sometimes you just need to walk away from a situation and not spend any more money.

Time Value of Money

The idea here is that a dollar that you receive today is worth more than a dollar that you’ll get tomorrow.

Why? Well, it’s because you have the opportunity to invest that dollar immediately and begin earning revenue from it (and also avoid losing value because of inflation).

That’s one more reason to save money every time you get some money.

Start learning these concepts now, and by the time you're ready for college or a job, you'll be even smarter with your money.