1. Some Basic Economic Concepts for Personal Wealth Management

2. Economics  The social science concerned with distributing scarce resources among alternative ends.

3. Economist  The word economists is taken from the Greek word oikonomia, which means "house management".  It originally applied to persons who were good administrators within a community, business or home.

4. The Economic Problem  The problem of having unlimited wants but limited resources with which to satisfy them.

5. Scarcity leads to Choice  choices and trade-offs are necessary  this is the core of many personal wealth decisions

6. The Concept of Opportunity Cost  The value of the next best alternative foregone

7. The Concept of Opportunity Cost  For example, what is your opportunity cost of attending this class today?

8.  What is the opportunity cost of taking $500 from your savings account to go to Vancouver for the weekend?

9.  The concept of opportunity cost is useful in making decisions.  It illustrates that there is “no free lunch”

10.  Trade-offs are required.