The yearly financial cycles are divided into four quarters. Each quarter consists of three months: Q1 is January through March, Q2 is April through June, Q3 is July through September and Q4 is October through December.
The Gross Domestic Product (GDP) is a measurement of a nation’s wealth. GDP measures national economies by calculating national income and outputs. The GDP is calculated by adding up the total market value of all the goods and services produced in a specific country. So, the short version to understand GDP: you add up every product made or service supplied in the country and you will have a number called the GDP.
A recession is a period of time where the country’s GDP did not grow or is negative. The textbook definition is two business quarters in a row that have no GDP growth or have negative GDP growth, meaning a loss. If a recession is not corrected in the economy the recession can lead to a depression.
As budgets get tighter, and households begin to clutch every penny we see America changing. Yes, the current GDP figures (see National Economic Accounts Posting) show we are in a recession, but not a depression.
These financial times are challenging and unnerving as so many changes are taking place in America and around the world. You’re young and free. Now is the time to learn and plan ahead. Your financial future is in your hands. If you understand how money works and how to use money responsibly you can secure a bright financial future by making smart choices with your money. I call this Financial Wisdom, and that is what I hope to teach you on this website.