Birth - 10
Where does money come from?
Coins are printed at the US Mint and dollars come from the Bureau of Printing and Engraving.
The Fed buys assets from the government which puts money into the economy through fiscal policy.
What is credit?
Credit is the ability to borrow money or access goods or services with the understanding that you'll pay later.
What is a 401(k)?
A 401(k) plan is a company-sponsored retirement account to which employees can contribute income, while employers may match contributions.
What is FAFSA?
The Free Application for Federal Student Aid, or FAFSA, is the form that determines your financial aid from the government and most colleges.
What is a will?
Generally speaking, a will is a legal document that coordinates the distribution of your assets after death and can appoint guardians for minor children.
Why do things cost as much as they do?
Everything costs some amount of money to produce. Your favorite food needed ingredients, so the restaurant or store charges slightly more than what the ingredients cost to generate a profit.
What is the difference between a credit and a debit card?
Debit cards draw from a checking account which has a definite amount of money in it. It works like cash, but you don't have to carry paper bills around. A credit card lets you accumulate your spending, and then you "pay it off," either in full or partially every month. A credit card technically allows you to spend more than you have.
How much should you plan to save for retirement?
When saving for retirement, most experts recommend an annual retirement savings goal of 10% to 15% of your pre-tax income. High earners generally want to hit the top of that range; low earners can typically hover closer to the bottom since Social Security may replace more of their income.
What options do I have to take care of elderly parents?
Depending on the needs of your parents, you may want to provide for them in different ways. You may decide to support a caretaker in their home, care for them yourself in your own home, or help them into a retirement community, assisted living facility, or memory care facility.
How much does assisted living or memory care cost?
Assisted living can cost up to $108,000 per year, but averages about $54,000 per year.
Memory care can cost anywhere from $30,000 to $145,000 with a median of $65,000 per year.
How do stocks work?
Stocks are portions of a company that the public owns. Companies put them on the stock market to raise money, and then people buy them with the hopes that their value will increase and they can sell them for more than what they paid.
What is a credit report?
A credit report is a statement that has information about your credit activity and current credit situation such as loan paying history and the status of your credit accounts.
What happens if I don't pay off my credit card?
If you don't pay your credit card bill at all, you will likely get charged a late fee, lose your grace period, and have to pay interest at a penalty rate. Your credit score will also go down if you fall at least 30 days behind on a credit card bill payment.
What is Social Security and how does it work?
Social Security replaces a percentage of your pre-retirement income based on their lifetime earnings. The portion of your pre-retirement wages that Social Security replaces is based on your highest 35 years of earnings and varies depending on how much you earn and when you choose to start benefits.
What should I consider financially when my spouse passes away?
Call your attorney. Contact the Social Security Administration. Locate your spouse or partner’s will. Notify your spouse’s employer. Contact your spouse’s former employers. Notify all insurance companies, including life and health. Discuss next steps with a financial professional. Meet with your accountant/tax preparer. Contact all three major credit bureaus.
Why do some jobs earn more money than others?
Some jobs are harder to do than others. They may require advanced knowledge that comes from earning a college degree or higher. Since the work is more difficult, not just anyone can do it. The people who can do it are valuable, so companies pay a lot for someone to work for them instead of someone else.
How do you open a savings account?
You'll need to file jointly. You will provide identifying information such as Social Security number and address. Shop around with different banks to see that the account you open has the features you want (e.g. overdraft protection, minimum balance, etc.).
How do you buy a house?
Figure out if you’re ready to buy, save for a down payment, and get preapproved for a mortgage. Then find a real estate agent, put in offers, and close on your new home.
What does it mean to refinance a mortgage?
When you refinance your mortgage, you replace your current mortgage with a new loan. The new loan might have different terms — moving from a 30-year to a 15-year term or an adjustable rate to a fixed rate, for example — but the most common change is a lower interest rate.
What are the different kinds of life insurance?
Term Life Insurance
Increasing Term Life Insurance, Level Term Life Insurance, Decreasing Term Life Insurance
Permanent Life Insurance
Universal Life Insurance, Whole Life Insurance, Variable Life Insurance
How do banks make money?
Banks lend people money at interest. Here's an example of how that works. I borrow $100 from the bank, and I have 10 weeks to "pay it off." If the bank charges 1% interest, I pay them $11 every week for 10 weeks. I get to have more money than usual, and the bank makes $10.
What is interest?
Interest is the amount that banks or lenders charge you on top of the amount that you pay them monthly for the loan you have taken out.
What are the most important things to save for in life?
Retirement, Emergency Fund, Kids College Fund, Housing Fund, Car Fund, Family Expenses, Deductibles, Milestone Expenses, Vacation Fund, Christmas Fund and FUN!
What are the pros and cons of having a financial advisor?
Pros: Helps you plan for the long term. Researches and compares different investments and strategies. Takes on the responsibility of decision-making so you don’t have to. If the adviser is a fiduciary, they are required to act in your interest.
Cons: Generates an additional expense. May be biased in recommendations. May recommend more costly products/churn portfolio.
What happens to debts at the end of life?
When someone dies owing a debt, the debt does not go away. Generally, the deceased person’s estate is responsible for paying any unpaid debts. When a person dies, their assets pass to their estate. If there is no money or property left, then the debt generally will not be paid.