ECON 43:
Introduction to Financial Decision-Making
The purpose of this course is for you to obtain both a broad overview of the role of finance in society and your role in it, and a degree of greater comfort that you know how to approach the major financial decisions you will confront. Your journey through life will require many financial decisions, some easily predictable now, that will heavily influence the quality of your life, your financial security, your ability to withstand unanticipated burdens arising from the vagaries of your and your family's lives, and to keep open desirable options on how you lead your life. The course will use a variety of approaches to illustrate and analyze archetypical situations, emphasizing both sound decisions and financial mistakes that are all too common and can have major damaging results. From illustrative examples and case studies, to historical and statistical evidence and some simple analytical tools, the course is designed to help you develop some straightforward understanding of basic financial concepts, the people and institutions you will interact with in making such decisions, and advantages and disadvantages of alternative approaches for individuals and society. Topics include making a financial plan and budget, managing money, obtaining and using credit and loans, saving, investing in stocks, bonds, mutual funds, ETFs, and other assets, venture capital and private equity, purchasing insurance, purchasing vs. renting a home, getting a mortgage, taxes, inflation and inflation protection, financial markets and more. Summer 2024: Students will be given the option to take the full 5-unit course (Section 01) or a revised 1-unit course option that will be offered CR/NC ONLY. The 1-unit course option is suggested for students who are interested in learning more about the personal finance topics taught in this course but who may not already have background knowledge in economics. Those interested in the 1-unit course offering should enroll in section 02. The one unit course option cannot be applied to economics degree requirements.
Terms: Spr, Sum
| Units: 1-5
| UG Reqs: WAY-SI