Why studying economics will help in your future financial planning.

I’m sure we’ve heard many people say, “Studying economics is very important!” or “You need to learn about economics because it can help with your financial planning!”. As such, many have opted to seek economics tuition in Singapore.

But how exactly does learning economics help us?

            Before we delve into how studying economics can improve your financial planning, let us explore economics as a subject first!

What is Economics?

          At its core, economics is the study of human behaviour and its relations to businesses, governments and society overall. It also addresses the need for public policies and business management, to name a few learning points, that will be important for us to know about in our working lives.

 Learning it enriches you in understanding how the corporate world around us works, and how you can maximise your finances in the future! Knowing this now, how can we then use it to for financial planning?

How learning Economics can help with future financial planning.

  1. It develops our analytical and statistical capabilities.

As mentioned before, economics is the study of our intricate structure of our economy, and how human behviour impacts the way that it is structured. It also requires us to be able to handle and understand complex data.

Hence, being able to do well in economics relies on us developing those skills that can be applied to our day-to-day lives outside of our academic journey, such as comparing different career options to decide which path would be the most rewarding for ourselves in the long run.

  1. It allows us to understand our own spending tendencies.

            Many of us, unfortunately, tend to fall into the trap of consumerism, given the fact that we are constantly bombarded with advertisements left and right. Thus, we often end up spending way more that we need to, instead of saving for futures.

            Luckily, studying economics can inculcate a greater sense of awareness of our own spending habits that we otherwise may not have previously been concerned about.

            This is so, as economics teaches us marketing strategies and profit mark-ups that businesses use to encourage consumer spending. Knowing such information would allow us to rethink before we spend and opt for more value-worthy options.

  1. It aids us in linking real world events to how it can affect the economy.

            Needless to say, financial literacy is always and important skill to have, no matter what career path one may seek to take. As such, being able to identify how a real world event may affect our economy is extremely helpful in ensuring our future financial stability.

In light of the recent COVID-19 pandemic, we have seen a drastic change in employment, the likes of which we have never seen before. Unfortunately, many were left unemployed and lost on where to go from there, given the sudden change of events.

Subsequently, understanding how events like these would pan out for the economy grants us a type of foresight, to potentially prevent landing ourselves in undesireable financial situations in the future.

            In closing, these are just a few perks about studying economics with regards to our future financial planning. As a result, it would be undeniably important for us to have a good grasp on the subject.

            Understandably, simply learning economics in school can prove to be tricky, given its highly analytical nature. Not to mention, it can also be tough to clarify all our doubts in school alone, given the fact that most teachers are often very busy, and may not have the time for everyone.

Fortunately, there are many options for us to improve on our economics or maintain good grades, such as through online economics tuition, or looking for a personal economics tutor in Singapore to help you in ensuring a stable financial future!