The HIDDEN COSTS of Every Decision You Make!

Every decision you make comes with a price, which economists call the "opportunity cost." Understanding it can help you become a better CFO of your life.

Two Cents was created by Katie Graham, Andrew Matthews, Philip Olson CFP® and Julia Lorenz-Olson and is brought to you by PBS Digital Studios. We love dropping some knowledge on all things personal finance and helping you make better money decisions.

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Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson
Directors: Katie Graham & Andrew Matthews
Written by: Andrew Matthews
Executive Producer: Amanda Fox
Produced by: Katie Graham
Edited & Animated by: Andrew Matthews
Images by: Shutterstock
Music by: APM

[QuestionEverythingButWHY]

“Life can only be understood backwards; but it must be lived forwards.”
― Søren Kierkegaard

[StanSays]

This has plagued me with stress with even the most minor decisions, but the last statement is really encouraging. Thanks guys!

[JustTheTip]

The cost of going to college vs starting your career is probably the most overlooked opportunity cost in the modern world. Great video!

[Jebusankel]

I had a boss that didn't understand opportunity costs. He had highly paid programmers painting the office and moving furniture when he could have hired cheaper labor to do that. He figured it was free since they were salaried.

[michaellavy]

I’m so glad you guys covered this. I’ve tried to explain opportunity cost to friends who only think about the accounting costs, and you guys really nail your examples on the head

[AntonWongVideo]

That opportunity cost got VIc singing "I'M NOT

[msthalamus]

My 13 year-old daughter has struggled with opportunity cost her entire life. I love how this video treats the subject, especially the warning against overthinking the choices. What I've told her is that once she's made up her mind, she should do all she can do to stop thinking about the alternative, like it never existed in the first place. This isn't universal advice, but for someone who frets like my daughter does and who often finds it impossible to enjoy the choice she went with because of the loss of the other option, I think it's exactly the solution to strive for.

[AxelQC]

Opportunity cost is the most important concept in economics, especially when combined with the concept of marginal cost and marginal benefit.

[jinkings]

i haven't even watched this yet... but i know i'll be using it in my classroom

[aarongold]

5:33 also the work to sell a bottle of wine for just $100 when you could just enjoy it.

[atthaviriyalim]

Opportunity cost: The time you spent thinking on other opportunity costs can be used for something more productive

[jerryloncey]

Them: "You and your wallet can't be in two places at the same time"

Well, tell that to all these online subscription services popping up all over the place.

[josemanuelherrerasebastian]

The opportunity cost of thinking of opportunity cost: living life.

[needlequill]

"Have you got something better to do?"
OMG what an incredible way to start an episode about opportunity cost!

[wxhxnek]

"If Angela goes to college, she may make more money down the road, but she will miss out on 4 years of salary and job experience that she would have gotten from a full-time job."
Me, a full-time employee who just started full-time college: 🙃

[jerryloncey]

Her: "You can see how opportunity cost, can send you down a rabbit hole of infinite possibilities..."

Me: "Then why did you tell me about it?" 😭😭

[GavinVox]

I can still remember my Economics teacher from high school saying "Opportunity Cost is the opportunity lost". Great way to remember what it means.

[jerrysinclair]

Honestly I never thought of Opportunity Cost or knew the term. Thanks for shedding some light on it for me :)

[BabyBearRudy]

As an economist, I really appreciate you guys talking about opportunity cost 🙌🏼

[TomMcMorrow]

That opening pun made genuinely laugh out loud. Good to see Phil's dad jokes are coming in! 😂

As someone who came up through high school in the big emo and goth explosion circa 2004, I also laughed a little too hard at that MCR reunion. Me in 2020 loves blazers and penny loafers. Me in 2004 loved all black and metal spikes. Ah maturity.