Have you ever wondered how banks work? These videos are helpful in building an understanding of how banks function and the purpose they serve. They were developed by Salman Khan of the Khan Academy and are licensed under a Creative Commons 3.0 License. [Read more…] about How Do Banks Work?
Learn How to Start Investing and Build Wealth
This free online course teaches new investors how to start investing with small amounts of money. In addition to investing, this also covers money management, retirement planning and choosing a financial advisor. I discovered this course through Dr. Esther M. Maddux, PhD, CFP® of Kansas State University. Visit Money Crunch for more details.
How to use this course:
- Look over the lesson topics and slide show as an overview.
- Read the lesson notes, these add the real value to this course.
Lesson 1: Where Do I Begin?
- Contribute to savings and/or investments on a regular basis.
- Know spending patterns and keep track of income and expenses on a regular basis.
- Identify ways to increase income or decrease expenses to find money to save.
- Pay yourself first from each paycheck at least 10% of take-home pay.
- Save and invest to:
- Repay debt
- Meet seasonal expenses
- Pay for emergency expenses
- Pay for major goals
Click Here for Lesson 1 Notes
Lesson 2: Why Save?
- Create savings by contributing automatically to a savings account from each paycheck.
- Replace money used for seasonal and emergency expenses after money is taken out of the account.
- Contribute regularly to savings to accumulate money for short and long-term needs (health savings account, retirement account).
- Accumulate money to be able to meet short-term (one year or less), medium term (one to three years), and long-term (three or more years) needs.
Click Here for Lesson 2 Notes
Lesson 3: Which Is the Best Alternative for Me?
- Define the criteria you will use to evaluate financial products.
- Understand how to use the criteria to choose the appropriate mix of financial products for you.
- Evaluate financial products using the criteria that are a good fit for you.
- Identify your personal risk tolerance level to select financial products that match it.
- Know the factors that affect investment return including earnings, fees and taxes to select the best financial products.
Click Here for Lesson 3 Notes
Lesson 4: What’s What in Savings & Investments? – Savings
- Choose appropriate savings products to reach goals.
- Be able to save by having money automatically deducted into temporary savings for short-term goals.
Click Here for Lesson 4 Notes
Lesson 5: What’s What in Savings & Investments? – Investments
- Know the investment products available so you can choose the ones that can help you best reach your long-term goals.
- Manage your money inflow and outflow so you can have money automatically deducted into investments to help you reach your long-term goals.
Click Here for Lesson 5 Notes
Lesson 6: What’s What in Savings & Investments? – Retirement Plans
- Identify retirement plans that are available to you.
- Describe the features of your retirement plans.
- Know how much in contributions are made by the employer and/or how much you, the employee, contributes.
- Know when and how to access your plan benefits.
Click Here for Lesson 6 Notes
Lesson 7: Where Will I Place the Money I Save?
- Save money for seasonal expenses, emergencies, and major goals in highly liquid, interest-earning accounts such as savings accounts or money market fund or money market account.
- Save for future education costs for you, your children or grandchildren.
- Save to minimize taxes.
- Save to take advantage of retirement plan options.
- Create investment goals and develop plans for reaching those goals.
Click Here for Lesson 7 Notes
Lesson 8: How Do I Protect My Nest Egg?
- Choose to invest with someone who can make a profit for you that fits your risk tolerance style.
- Investigate before you invest.
- Recognize and protect yourself from fraud and abuse when saving and investing.
- Know who to contact if you have a problem.
Click Here for Lesson 8 Notes
Lesson 9: How Do I Choose a Financial Adviser?
- Investigate before investing to make sure you are investing with a reputable adviser.
- Know the types of services a financial adviser can provide.
- Find the right adviser that you feel comfortable working with.
- Know the questions to ask to find the financial adviser that is right for you.
- Know the roles of the different types of financial advisers and how they can help you manage your savings and investments.
Click Here for Lesson 9 Notes
Lesson 10: How Do I Read the Financial Page?
- Read and understand the financial section of a newspaper.
- Read and understand the stock tables.
- Read and understand the bond tables.
- Read and understand mutual fund tables.
Click Here for Lesson 10 Notes
Introduction to Money Management
Money management is the cornerstone of every financial plan and the foundation for every financial future. Even with optimal risk management through insurance, a solid estate plan, minimal taxes and an extraordinary investment portfolio, if you fail to properly manage your money you will fail. [Read more…] about Introduction to Money Management
What is Financial Planning?
The goal of financial planning is to help define and achieve life goals through effective management of finances and risk. Financial planning is a process, not a product. You will never “finish” planning for your future. Why? Because things change. People get married, have children, inherit estates, change careers, change goals, the economic climate changes, tax rules change, everything changes. Your financial plan should be reviewed when significant life changes occur and at least annually. [Read more…] about What is Financial Planning?
Ever Use Net Worth to Set Goals? You Should
Part of: How Does the Net Worth Planning Process Work?
Net worth allows us to assess our current financial situation and allows us to set short and long-term goals based on solid data. Setting annual net worth goals is an effective strategy, but the results will only be as good as the process and the data involved. When setting net worth goals, it is important to be realistic. [Read more…] about Ever Use Net Worth to Set Goals? You Should
Know How to Calculate Net Worth? Learn Now!
Part of: How Does the Net Worth Planning Process Work?
Calculation of net worth can be done with a variety of tools. Though many tools exist, they all must involve the essential concept of subtracting liabilities from assets.
These tools include a simple worksheet, an online calculator, a spreadsheet based calculator or a personal finance computer program to name a few. More complicated calculators exist for individuals with more complex financial situations, i.e. business owners or those with extensive assets. [Read more…] about Know How to Calculate Net Worth? Learn Now!
