Lesson 2-2: Delayed Gratification
You have earned 7 point(s) out of 8 point(s) thus far.
Financial Opportunity Costs
One type of Opportunity costs is financial opportunity cost. Financial opportunity costs occur when money is used for one activity and therefore cannot be used for other activities or investments.
For example, making the decision to save your money today opposed to spending it will result in a greater future amount than the initial investment as a result of the interest earned.
However, it is possible for your purchases to have a higher current value than the interest earned due to the necessity of those purchases:
o Food
o Medicine
o Fuel to get to work