Different socioeconomic classes have different priorities regarding how they direct their funds. A socioeconomic class are grouped together with similar characteristics like:
<ul>
<li>Social and economic standing</li>
<li>Level of education</li>
<li>Current profession; and</li>
<li>Ethnic background or heritage</li>
</ul>
Due to the differences in such charateristics, certain goods and services are unavailable to specific classes becuase they may not be able to afford them.

Understanding Social Economics

An individual's socioeconomic status can significantly impact their educational attainment and financial security.
Studies show that those who come from a lower socioeconomic status were related to having poor cognitive development, language, memory, and socioemotional processing, and consequently poor income and health in adulthood.
The negative impacts are significant to the point that it affects children long-term.

Gauging The Impact of Social Economics

Social Economics is a branch of economics and social sciences that puts focus on studying and analyzing the relationship between social behavior and economics.
It attempts to explain how a particular social group or social class behaves within a society and this includes their actions as consumers.

Social Economics

<ul>
<li>The first perspective applies the basic theoritical and applied tools of neoclassical microeconomics to areas of human behavior that isn't considered proper;</li>
<li>The second perspective applies the ideas of other social sciences such as sociology, psychology, and identity group studies.</li>
</ul>
The theories of social economics consider factors that are often outside of mainstream economics, this includes the effect of the environment and ecology on the consumption of wealth.

Two Broad Perspectives of Social Economics

Social economics is a branch of economics that focuses on the relationship between social behavior and economics.

Discover the world of business and economics.

economics

Economics

personaldevelopment

Personal Development

moneyandinvestments

Money & Investments

How Social Economics Influences Your Future

Hobbies take work and turn it into leisure, and take leisure and turn it into work. Hobbies occupy the borderland that is beyond play but not yet employment.There’s a growing trend of people turning their hobbies into side hustles. If hobbies are this good, why do we try to turn them into work?

The Trend Of Turning Hobbies Into Side Hustles

This concept refers to our perceived knowledge of ourselves, based on the number of distinct aspects we believe we possess. Goals, relationships, and activities are all part of a network forming our sense of self.The lower your self-complexity, the more fragile you are. But if your self-complexity is higher—you have a couple of hobbies, personal goals outside of work, and relationships outside of your family members—your sense of self is stronger.

Self-Complexity

Pushing too hard to turn a hobby into a hustle can actually make you lose your passion.The main difference between a hobby and a hustle is whether you have to do it even when you don’t want to. Client waiting for a deliverable, customers who subscribed to receive a specific service, paid commitment to write a piece? That’s a hustle. Nobody cares whether I do the thing or not? That’s a hobby.

Hobbies Vs Hustles

<ul><li>While most people are aware hobbies tend to make us happier, they are also scientifically proven to make us healthier. Hobbies seem to help us live a calmer life, which reflects on the body.</li><li>For people with high-pressure jobs, hobbies help with disconnecting them from their business related tasks and from entire thought patterns around building a business.</li><li>Hobbies are also a way to shape our identity.</li></ul>

The Psychology Of Hobbies

problemsolving

Problem Solving

timemanagement

Time Management

business

Business

Don't pin the butterfly: not all hobbies need to become hustles - Ness Labs

A study found that people are more willing to donate when a charity appeals to the benefits the donors will receive than to altruism.
Researchers mailed postcards encouraging randomly assigned families to donate money to charity. The postcard either highlighted the benefits to others or the benefits to themselves. Those who received the postcard promoting self-benefits were 6.6 percent more likely to give and gave 23 percent more on average.

Charities to appeal to self-interest of donors

The study to increase donations above current levels does not deny that some people are giving out of altruism, but rather that an appeal to self-interest is effective.
In an ideal world, charity is its own reward. In this world, it helps to remind people that they can feel wonderful after donating to a cause.

Not all actions are driven by self-interest

A study on charity finds that reminding people how nice it feels to give yields better results than appealing to altruism

Understand yourself and those around you.

psychology

Psychology

communication

Communication

teamwork

Teamwork

Study: People will donate more to charity if they think something’s in it for them

<ul>
<li>We can set up automatic payments to the debt with the highest interest without regarding how much is owed on it.</li>
<li>We can consolidate multiple debts into a single loan. If you have five different loans with different interest rates, your loan servicer can consolidate each debt into one payment.</li>
</ul>

How we can reduce our debt

Many people do not effectively manage their debt but juggle multiple debts with different terms and interest rates.
The most effective way to pay off debt is to focus on the loans with the highest interest rates first. However, research shows that consumers who manage multiple debts prefer to reduce the total number of debts rather than reducing the total of their associated costs, even if they will pay more in the long run.

How we intuitively manage debt

<ul>
<li>The Prospect Theory suggests individuals are more sensitive to a loss than a gain of an equal amount. The urge to get in the black is so strong that people are motivated to pay off small debs without considering their interest rates.</li>
<li>The Goal-Gradient Theory supposes that consumers are more willing to make an effort towards small debt just to finish paying them off.</li>
<li>People do not take into account how interest compounds over time.</li>
</ul>

Psychological processes behind debt account aversion

books

Books

Why Don't People Manage Debt Better?

In the old days, a coin of some metal was easier to exchange than to implement a barter system. Of all the metals, gold was the logical choice.
<ul>
<li>Metals like iron, lead, copper, and aluminium are prone to corrode over time. </li>
<li>The "noble metals" like platinum or palladium are too rare to generate enough coins to circulate. </li>
<li>Gold and silver. Gold is heavier than silver. Gold doesn't corrode and can be melted over a flame, making it an excellent choice to stamp as a coin.</li>
</ul>

Gold as a method of exchange

If the modern paper-money economy were to collapse, we would fall back to gold.
<ul>
<li>People need to find ways of working together, which leads us to find ways of exchanging goods and services.</li>
<li>Gold is the logical choice of this exchange as it is one of the only substances on earth will the right qualities for the job.</li>
<li>If society agrees to turn gold into coins into a system of exchange, then gold coins would instantly assume value.</li>
</ul>
That means that gold will always have value in difficult and in good times.

Gold, psychology, and society

Some people think that gold has no intrinsic value and that gold's only worth is as a material to make jewellery. Others assert that gold is an asset with various intrinsic qualities that make it unique for investors to gather in their portfolios.
<ul>
<li>Most would agree that gold has always had value - as a component of jewellery, sometimes as a currency, and as an investment.</li>
<li>Another part of the value of gold is it's appeal to mystery. Something about the warmth of gold touches our human need for comfort and nurture.</li>
</ul>

How Social Economics Influences Your Future

Don't pin the butterfly: not all hobbies need to become hustles - Ness Labs

Study: People will donate more to charity if they think something’s in it for them

It's time to Read like a Pro.

Why Don't People Manage Debt Better?

It's time to
Read like a Pro.