Educating yourself about economics.....

[Montez]

In the News forum discussion about potentially buying Interplay stock and such, Rosh mentioned that he thought stock market trading should be taught in high school economics. This got me thinking - not only did my high school not have anything even resembling an economics course, but I have no clue about economics or the stock market besides scraps of information I've aquired here and there, and I've never tried to aquire a greater knowledge of it.

I think it's about time I started educating myself on the subject; however, I have no idea where to start. I have a copy of Smith's "The Wealth of Nations" lying around which I've glanced at a few times, but I have a feeling that's not enough. So, for myself and any others who are interested, can anyone recommend some good resources or books for learning more about all of this?

 

[welsh]

Well Montez, to be honest most of the kids I teach here have no idea of markets before they come in, and little when they come out.

Adam Smith will get you into the question of economic theory, but there is a lot of theory to go through. I suggest that everyone take courses in micro and macro economics in college. This stuff comes back in strange ways.

I would also pick up a good book on business law. West publishing has a very good undergraduate text on business law- how to buy and sell, what is a contract and when it exists, all the way to corporate management, insider trading, etc. This is a good class to take as an undergrad (and most colleges offer some course in commercial law or business law). But if you can't do it, grab the book.

One added plug for a course in business law- it's an introduction to about 75% of what you will see in law school. So if you are thinking of practicing law, take business law as an undergrad.

I would also suggest a course in personal finance. The difference between money markets and savings accounts, between bonds and stocks, how to develop a portfolio, etc. That kind of stuff.

You don't get much of that in college, and it's a shame. The way to make money these days is not by working for it, but by knowing how to invest it to make more. The beauty of that is, the more you know about how to make money with money, the less you have to work. This would allow you to pursue a career doing something you enjoy without necessarily sacrificing quality of life.

I really can't emphasize this enough. Guys essential, but women especially. My father past away when I was young and left my Mom with little but a house and a little extra property. No insurance, no protfolio. Over the space of the next few years she had to learn how to invest and manipulate money while raising two boys. If you think of the possibility that one day you may lose a spouse or be incapacitated from working in your career, it's good to know how to make money other ways.