Questions tagged [financial-literacy]

for questions related to understanding basic concepts in finance or certain terms in a particular context

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3answers
1k views

How do I determine future balance owed on a mortgage based on amortization?

A family buys a house worth 326000.They pay 110 000 down and then take out a 5-year mortgage for the balance at j2 = 6.5% to be amortized over 20 years. Payments will be paid monthly. Determine the ...
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6answers
1k views

Ongoing things to do and read to improve knowledge of finance? [closed]

In this forum, there are a lot of people whose primary job is programming. And yet they are very knowledgeable on a lot of financial topics. Can you please share what you do/read on a regular basis ...
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9answers
2k views

What are the best strategies to give pocket money or an allowance to children?

What are the best strategies to give pocket money or allowance to a child especially if you would like to teach them something through this, e.g. saving?
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1answer
665 views

Is having a Critical Illness Insurance worth it?

I am aware that the typical argument for having a CI insurance is because we just really don't know what will happen in the future and it's better to be protected. But is it really worth it paying for ...
8
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2answers
799 views

what are the pros and cons of structured deposits?

This morning, I came across the term, structured deposits. As I am still learning about finance, I am quite curious on different types of deposits. In layman's terms, What is a Structured Deposit? ...
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1answer
743 views

How to find if a public company has taken out a loan?

From a company's Income Statement, Balance Sheet, and Cash Flow data, is it possible to figure out if the company has taken out a loan and how much it has taken out?
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3answers
828 views

If prices are falling, who will lend shares to short sellers?

Short selling is a process that involves borrowing shares from a person, selling them and then buying them back at a lower price, thus realizing a profit. In this situation, knowing that prices are ...
1
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2answers
2k views

What does “running a very large fiscal deficit” mean?

Recently I was reading an article on ft.com, and I came across this quote: They [yield on gilts and bonds] are particularly striking in the cases of the US and UK,which unlike Germany, run very ...
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1answer
144 views

Why do they call them “financial products”?

As far as I know there are no products involved. All they sell are services. Why then this name "products"?
4
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3answers
180 views

Are quarterly earnings released first via a press release on the investor website, via conference call, or does it vary by company?

Are quarterly earnings released first via a press release on the investor website, via conference call, or does it vary by company?
2
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2answers
13k views

How can the ROE on a stock be more than 100%?

I looked at a stock's ROE for Q3 2011 and it was more than 100%, but the operating margin wasn't very high, around 5%. How is this possible?
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9answers
4k views

What is the difference between “good debt” vs. “bad debt”?

This other question about home renovations makes reference to the concept of "good debt." Could somebody explain the concepts of good debt vs. bad debt, providing examples of each? Are there cases ...
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2answers
296 views

What is meant by “proof of funds” and what would such proof be used for?

What does it mean when some funding firm or commercial bank asks for "proof of funds"?
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1answer
2k views

What's the difference between “marketable” vs. “tradable” (tradeable)?

In Bodie's textbook "Investments": Money market instruments include short-term, marketable, liquid, low-risk debt securities. I was wondering about the differences and relations between "...
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5answers
572 views

Are personal finance / money management classes taught in high school, anywhere?

It sure seems like something that would be a valuable life skill, akin to Home Ec (or even more important!)... Where I'm from (Peel Region in Ontario Canada), it isn't part of the curriculum.
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3answers
3k views

What is the difference between a stock and a bond?

I am just learning about finances (only 14 years old) and have heard about Stocks and Bonds and I would like to know the difference between these two things and wonder why would I invest in one or the ...
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4answers
517 views

What is a Master Limited Partnership (MLP) & how is it different from plain stock?

I came across a reference to a "Master Limited Partnership" in a news article recently. I understand they are exchange-listed investments like individual stocks. But, what exactly are Master Limited ...
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5answers
2k views

Which secured credit cards start building your credit history right away?

I spoke with 3 banks this morning and they all said that for the time I was on the secured card, they would not report me to the credit unions and companies. They would just keep the score internal to ...
8
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3answers
3k views

What is the true value, i.e. advantages or benefits, of building up equity in your home?

I am a relatively new home owner, having purchased my first home in October 2009. It was a $315,000 home, purchased with a 5% no-cost loan with I believe 12% down payment. I think the total financed ...
27
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9answers
3k views

Which practice to keep finances after getting married: joint, or separate?

My wife and I have been keeping our finances separate for a long time. Some of my friends just put everything in a big pot. We each have our own pot, but then we have a common pot where we put all ...
11
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3answers
620 views

At what age should I begin discussing money - saving, spending, investing - with my child / children?

In addition, when should I open a savings account at our bank for my kids; and give them accountability over it?
5
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5answers
139 views

Spring cleaning for your finances? Is there any activity that should be done annually, with respect to your money?

In order to maintain the health of your finances, do you do any particular activity on an annual basis that you would recommend that might benefit others? Say, a "spring cleaning" of some sort?
10
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6answers
733 views

Is it a good idea to teach children that work is linearly related to income?

It seems to me that, if you want to teach children at an early age about the benefits of careful personal finance, and other fun concepts (like an intuitive understanding of compound interest), paying ...
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1answer
89 views

what is the likely reason that the bank have a different year end than the other companies

what is the likely reason that the bank have a different year end than the other companies
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2answers
127 views

Stocks and bonds have yields, but what is a yield?

I often read about yield such as in this article from Kiplinger, but I have not been able to find a good description of what a yield is. What is it, and why would I care as a novice investor?
5
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1answer
111 views

How to Transition From Employee to Employer?

I know Making the transition from employee to employer requires financial stability, a good business plan, self-confidence and a lot of discipline. But i am looking for some instructions/tips from ...