Economics for non economists

Editors • Andreina Menéndez • Jessica Galdámez

Important things when you are buying a house It is important to know what kind of things you should consider when you buy a house because it will be the place where you share with your family.

First, you must consider the location because it will affect the time you will take to go to work, hospital or whatever place you have to go.

Currently, we know about the traffic issues in the country, it takes time go to from one location to another it all depends on the distances.

When you buy a house, you can`t change the location where you live in since that impacts every area of your life and your home market value.

Second, it is important to consider the purchase price this will affect how much the money you have for other expenses,

remember the combination of the total price, the interest rate plus the down payment it will determine your monthly payment.

Currently, it’s difficult to get a house, because of the high prices, the ones with reasonable prices are far from the city, and it’s difficult to get to your work, school, other relatives, and also are so small. if you wish to get a house, you must save at least 10% of the current price, which in these days is impossible due to all the expenses people have to pay.

So if you want to get your house is important to start to save money, and you will be able to do it.

Creative ways to save for retirement Since 1998, we have a private system based on a model of individual capitalization, affiliates workers and employers have regularly deposited workers money in a personal account.

In these days, people are worried about their retirement. Around the rumors of our future.

Recently we heard of a new policy about retirement. But we are not sure how this system is working the only thing that we know is most of us love to live comfortably, and saving money is important and even more having money when you 're old.

Currently, the system pension it is working in these way: We have the obligation of contributing to 6.25 % of monthly salary, employers have the obligation to provide significant savings deposited in each of the accounts of workers who work for them this saving is equivalent to 6.75 % of monthly salary. Which is divided 4.55% that goes to your Individual Pension Savings Account, 0.945% for the payment of disability and survival insurance and finally 1.255 % for the administration and management of the account.

If we have 4.55% and 6.25% in total we have 10.80% of your Individual Pension Savings Account.

On the other hand, currently the 58% that we are saving the government is used for system public retirement and the interest rate is 1.4 % that governments is paying.

When in the financial markets the interest rate is around 7% the employees haven`t received $1,325 million since we have this current system.

That's why is relevant to identify ways to save money for retirement that you probably haven’t considered so far. If you haven’t even begun to think about it, you will do.

To start saving early for a comfortable retirement, we must start to think about strategic ways to bolster up “for later funds.”

Help your future self out by getting creative with planning vacations, within the home, and by making changes to your diet, use of technology and the way you shop and save money, start to keep a part of the money that you earn in your private bank account, begin to think of your medicines. Remember retirement is expensive you need at least 80% of your preretirements incomes, and you will have the same lifestyle.

Saving can be as important as the amount of money you save, Inflation and the type of investments you make play a significant role.

Learn how your savings or retirement plan is invested, about all the implication of the government decision, about your current retirement investments and how you can do for improving.

You’ll thank yourself later.

Stop being

underpaid

To talk about wages and salaries is a taboo. It´s uncomfortable to talk about why somebody gets increases in their salaries and others no. One of the principals questions many do is am I being underpaid? Or am I doing more than what I earn?.

We can take action in this situation because being underpaid make work unpleasant. In order to stop being underpaid, what we have to do is make a research and look out into what other people in similar Jobs or positions make and earn, then compare with your situation.

An important indicator is experience.

After doing the research, you have to prepare for the negotiation with you employer. Study the employer´s policies. If the policies don't include promotion or raise Schedule, you´re free to negotiate. It will be an uncomfortable discussion, but is worth if you had prepared and practiced.

It´s important being reasonable with the range you hope to increase your earnings.

If the negotiation doesn´t work, you have to star considering looking a new job in wich you feel comfortable. It is possible you free insecure to make a negotiation with your employer, but if you had got another job offer, that can serve to negotiate for a higher salary. Tell your employer about your new Jobs offer and try to persuade to consider increase you salary, but you have to be prepared if your employer prefers to let you leave.

Being underpaid hurts everyone who tries to do their best.

Research, preparation and looking elsewhere may help you to get a better salary and make you feel with dignity.

Savvy kids: Why the financial education is important A minimum financial education is desirable to everyone because this education help to everyone to get prepared to ask, read and understand all about money. In fact, if we are informed we would be able to make the best decisions about our economy.

One of the biggest problems about children financial education is to reach that children realize the value of money because adults use to pay them money for nothing.

The first step to educate children about finance is set a good example because is easier learn seeing than just speaking.

Another important thing is talking to your child about daily money issues and create a friendly perception about money. One of the most important

things is the encourage savings, a good idea is to help them to open their first bank account as soon as the bank accept their age. The goal of the financial education is to teach them to be smart consumers and of course, teach them to make right decisions.

With financial education, each generation from this will have an increasing awareness of the importance of saving, managing household budgets, the importance of understanding the financial products we hire, and of course, every generation will see naturally saving as a basic tool for welfare.