Give me liberty... or give me debt!
What kind of debts should someone try to lessen first?
What is a stock?
A stock is a financial investment in a business that gives you partial ownership. Companies do this to raise capital to start their business, fund new ventures, and various other business functions. It is also typically called a "share" because of the nature of the investment.
What is the basic routine of budgeting?
When is tax day?
Tax Day in America is April 15th. There may be exceptions for certain holiday if applicable.
What is a credit score?
3 Digit Score that determines your credit worthiness. Range from 300-850. Determined by length of credit history, timeliness of payments, types of loans, and other lending's to consumers.
A cryptocurrency is a digital or virtual currency secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Bitcoin is the most popular cryptocurrency.
What are fixed personal expenses?
Fixed expenses are expenses that typically don't change or stay relatively the same throughout their lifetime but have high value to an individual (rent, mortgages, insurances, payments). These should be considered first when budgeting as these are typically bare bone expenses or expenses you cannot change much of.
What country has the largest GDP?
As of 2023, it is U.S. with $26.9 trillion dollars. China is second with $17.7 trillion. (U.S. Today)
What is predatory lending?
Predatory lending: unfair practice that benefits lender at a large margin with much higher interest rates, fees, and ambiguous terms and conditions.
How does it happen? Emotion. Most common predatory lending comes from times of financial worry, lack of time to research/lack of financial literacy, and time constraints to make a decision
What is the annual inflation rate in U.S.? (1960-2020)
3.8% per year on average (Forbes). If your money that you are saving does not make that much or beat it, you are losing value of money. This is one reason why money is better in a bank then under your bed, ever forget friends and family (people spending most time inside your home) are the most likely demographic to steal money from an individual in America.
Name one budgeting tool.
Excel, EveryDollar, Pen and Paper. Anything that visualizes your budget. Most people would choose to live within their means, most Americans actually struggle knowing what their means is.
What is the Federal Reserve?
The Federal Reserve is the central bank of the United States. They have very large power and influence over the American economy most notably with the power to directly affect interest rates on loans. They recently made the first interest rate cut in years.
What is debt consolidation?
Debt consolidation refers to taking out a new loan or credit card to pay off other existing loans or credit cards. By combining multiple debts into a single, larger loan, you may also be able to obtain more favorable payoff terms, such as a lower interest rate, lower monthly payments, or both. (Investopedia)
When should I invest?
By setting goals! Investopedia and various others have found that when people set clear and attainable financial goals they are most likely to achieve them!
What was the first currency?
Mesopotamian Shekel is considered the first form of currency by many Historians. The Lydian Stater is considered the first minted currency.
What is the "debt snowball" method?
Best used at younger ages (you)! The debt snowball method, you initially focus on paying off the smallest amount of debt in a short amount of time while still making minimium payments on other debts.
What is a Broker Dealer?
A broker-dealer is a person or firm in the business of buying and selling securities for its own account or on behalf of its customers. Broker Dealers do many things like providing investment advice to customers, supplying liquidity through market-making activities, facilitating trading activities, publishing investment research, and raising capital for companies. Some examples are JPMorgan Chase, Charles Schwab, and LPL Fianncial
What discretionary item do most Americans spend the most on?
Food. Food is essential but in terms of overspending, Americans tend to eat out more than any other demographic, especially college students (Forbes). This is arguably where most Americans can make the greatest impact on saving money.
What will likely happen to the department of education in the next four years?