To understand how choices work in everyday money matters, let's break it down:
Scarcity: This means there isn’t enough of something. For example, in the UK, there are about 67 million people, but there are only so many natural resources available for everyone.
Choice: When money is tight, people have to pick between different things to buy. In 2022, UK families spent 31% of their money just on where they live.
Opportunity Cost: Every time you choose something, you give up something else. For instance, if you buy a new phone for £100, you can't spend that money on other things. That could have been 100 meals if each meal costs £1.
By understanding these ideas, we can better see how people and society make decisions.
To understand how choices work in everyday money matters, let's break it down:
Scarcity: This means there isn’t enough of something. For example, in the UK, there are about 67 million people, but there are only so many natural resources available for everyone.
Choice: When money is tight, people have to pick between different things to buy. In 2022, UK families spent 31% of their money just on where they live.
Opportunity Cost: Every time you choose something, you give up something else. For instance, if you buy a new phone for £100, you can't spend that money on other things. That could have been 100 meals if each meal costs £1.
By understanding these ideas, we can better see how people and society make decisions.