hello students welcome to the first formal lecture of the course economics and personal finance in the lecture we are going to discuss the introduction to the course importance of the course and its significance for your financial well-being and at the end we will discuss exam structure so let's start displayed here are the flags of various countries along with their respective gross domestic product uh shortly known as GDP the gdps are shown on the right hand side the United States has GDP of approximately 20 trillion China's GDP is 12 trillion Japan's is 2.6 trillion and our economy is approaching to 3 trillion that all of you know these countries are often considered powerful due to their strong the US dollar being the contributes to their influence in the global market powerful countries generally offer higher standard of living compared to the underdeveloped or developing nations this is made possible by their robust economies which enable investment in Greater infrastructure Healthcare and education facilities many people aspire to visit or even settle these countries due to the opportunities and quality of life these countries offer as economy of a country affects our life and we learned about it through sub subject called as economics in your career you will prefer to work for bigger organization because they offer higher pay and better benefits economics help us to study the economy of a whole nation in short called as macroeconomics and the economy of a single company called as microeconomics this subject is introduced in your curriculum because it is directly related to your financial well-being as you progress in your career you may become manager who is responsible for managing resources including money knowledge of Economics give you an advantage over other managers as you can make informed better decisions about projects and investment for entrepreneurs understanding market conditions and economy is crucial for running a sustainable business with a good grasp of Economics you can allocate your money wisely and make better business decisions so the subject economics covers whether you want to pursue career in an industry or whether you want to start your own business economics is equally important for you on the slide you can see a picture of Hollywood celebrity Marilyn Monroe she was the most famous star in Hollywood and used to command a fee of half a million dollar for film in 1960s she charged three lakh dollars for her last film The Misfits unfortunately she passed away in the same year and at the time of her death she had overdrawn one thousand dollars meaning she has wasted all her money and taken the loan of one thousand dollars this story highlights the importance of managing money effectively so now earthing money is important but managing it effectively is of even more important importance finally personal finance is all about understanding how you manage your money in smart and responsible way now coming to the personal finance what is personal finance personal finer refers to the management of an individual's Finance Financial Resources it involves making inform and responsible decisions about earning spending saving and investing of course it also talks about protecting the money to achieve financial goals and secure future Financial well-being in personal finance individual assesses their current financial situation set financial goals like buying a home serving for retirement paying off debt or buying a car and create a budget to allocate income to different expenses and saving they may also consider various investment options to grow their wealth over time additionally personal finance includes understanding and managing Financial risks such as purchasing Insurance to protect against unforeseen events like accident health issue or property damage the principles of personal finance are able to people all income income and life stages by practicing good financial habits and making sound financial decisions individuals can improve their financial stability build wealth and work towards achieving their financial dreams and aspirations knowledge of personal finance is important for making more money out of the money you have ultimately resulting in better standard of living preparing you for emergencies in life growing your wealth over time and securing your retirement in the old age personal finance talks about budgeting banking Insurance mortgages investment and at the end retirement planning which is the most important similar to the five elements found in nature personal finance also consists of five Essential Elements income spending savings investment and protection the first element is your income which represents how much you earn the second element involves how wisely or unwisely you spend on earnings after spending the third comes into play which is how much you can save from your income the fourth element deals with deciding where to invest your savings lastly The Fifth Element focuses on safeguarding your asset from unforeseen situations like accidents or loss of income in summary the key points in personal finance revolve around managing your in your investment protection to ensure Financial well-being and security this is a saying from an economist either make your money work for you or you have to work for the money put your money at work to generate more money is the key of successful personal finance planning objectives of the course are written on this Slide the objectives of studying economics are summarized on the left hand side and on the right hand side the objectives of personal finance are mentioned now our content of the course in the economic section of the course we will dwell into the Indian economy exploring factors that influence it Additionally you will study the economics of business understanding demand and Supply relations and examining the banking system in India you will learn about monetary policy that monetary policy in the sense how the interest rates are determined and their impact on individuals furthermore you will get insights into Factor influencing the prices of dollar which is the most powerful currency in the world in personal finance section you will discover how to create budget for your income and expenses you will also learn how to set smart life goals such as purchasing car house or going on vacation and how to invest money to achieve these financial goals for instance if you plan to buy a car worth 10 lakh Rupees after four year the course will guide you how much money to invest over the four years how much down payment to make and how much to Avail through loan the course will also teach you how to protect your assets from unforeseen circumstances like unemployment or accidents Additionally you will be educated on retirement planning emphasizing the importance of starting early for a comfortable retired life now coming to the course delivery the course will be delivered through video lectures YouTube Links of the videos will be posted on the Google classroom the required course material will be available on Google classroom about exams for the continuous assessment you have to appear for T1 and T2 exam T1 will be assignment based the dates of the exam and assignment submission will be declared in due course in semester exam will be usual pain and paper method these are the books you can refer for more information on topics we will be discussing in the course you can reach out to me on through email given on the last slide so stay tuned and see you in the next lecture thank you for your attention see you in the next lecture