True Wealth Equals Credits Minus Debits

Finances 101 should be a required class in high school. Many take Accounting 101, but not everyone. If everyone were required to take Finances 101, they would know that real wealth equals credits minus debits.

Accounts Payable & Accounts Receivable

Accountants understand the differences between accounts payable and accounts receivable. If a company does not understand, then it will go bankrupt. So, why don’t individuals really understand the difference? If you look up the origin of the word, Economics it refers to household budgets. The original economics was based on how a family would manage its bills. Something has led people to think that economics is only what bankers do.

What Are Credits?

And, that is part of the problem. The world relies too heavily on high level bankers. Individuals, businesses and governments need to understand how accounting works also. Individuals, businesses and governments all have credit scores. Knowing the difference between a good credit score and bad credit score can save you a lot of money. Do you know what a good credit score means?

We don’t want you to name the number that constitutes the good credit score in the eyes of the banks, but the purpose behind … Read more