It seems like everyone is Snoop Dogg’s nephew. But you might be better off with Scrooge McDuck as your uncle. Don’t get me wrong, Snoop is great. But he thinks the game is to be sold and not told. At least that’s the title of his third album. Scrooge, on the other hand, gives game freely to his nephews. This video explains it all:
You heard the man, er, duck! Don’t pay attention to the fact that he’s a cartoon character. Listen to the message. Scrooge drops gems like Nothing good is ever free and Investing wisely is an art. BARS. Knowing these money basics will give you an advantage over people who only want to look rich.
Here’s what Uncle Scrooge teaches us:
- Money was created so that people could exchange one thing for another.
- Many things have been used as money in the past: salt, animals, gold, etc.
- Coins and paper currency are used today because they are easy to divide.
- The actual paper/metal that currencies are made from do not have much value. They must be backed by something that is valuable or that people have confidence in.
- Commodity-backed money is backed by something physical, like gold.
- Fiat money (like the US dollar) is backed by a government.
- Money must be backed by something because it is cheap to print. And printing too much can cause inflation.
- Inflation happens when there is too much money in circulation.
- This is bad because prices go up and decrease the value of your money.
- Understanding economics helps you to manage your money.
- Taxes are how the government pays their bills.
- You should always save some of the money you earn.
- You become rich by putting your savings to work, so that it grows.
- The quickest way to make your money grow is by investing.
Scrooge’s nephews wanted him to save their money for them. But he convinced them to invest it in his company’s stock (where he owns equity). Did you peep game?