1. The Economic Way of Thinking
Personal Finance

2. The Handy Dandy Guide is based on six ideas of economic reasoning:
People choose
We always have a choice – though sometimes the choices can be very difficult

3. All choices involve cost Dollar cost
The Handy Dandy Guide
All choices involve cost
Dollar cost
Opportunity cost: your next best option you could have made but did not make.

4. The Handy Dandy Guide People respond to incentives in predictable ways
One powerful incentive is money
As well as working for money, people can save money and earn interest on their savings
People can use their savings to buy more goods and services in the future

5. The Handy Dandy Guide
People create economic systems that influence choices and incentives
The American economic system relies on markets, choices and incentives
Every decision comes with an opportunity cost

6. The Handy Dandy Guide People gain when they trade voluntarily
Doing something because you want to, not because someone forced you to do it
People must decide if the benefits are greater than the costs, gather sound information and trade carefully

7. The Handy Dandy Guide
People’s choices have consequences for the future
Most people live for today, but also for tomorrow
People are affected by good and bad luck, but overall people shape their futures by the decisions they make