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Course: Personal finance > Unit 1
Lesson 1: Welcome to Personal FinanceWelcome to Personal finance
Welcome to Personal Finance!
Where am I?
Released in 2017, this course features a collection of videos and articles covering a range of topics from saving and investing to managing debt and insurance. These resources are designed to help you gain a foundational understanding of personal finance concepts.
How is this course different from the new Financial Literacy course?
While both courses are designed to help you manage your money more effectively, they differ in some key ways:
- This Personal Finance course hasn't been updated since 2017; in contrast, the Financial Literacy course is a new work-in-progress.
- The Personal Finance course contains only articles and videos; in contrast, the Financial Literacy course features new videos, articles, and practice exercises to help you better understand and apply the skills in the course and make real changes in your financial life.
- The Financial Literacy course is mastery-enabled: as you complete exercises, you can level each skill up from "Familiar" to "Proficient" to "Mastered" and better track your growth and progress through the course.
Which of these courses is right for me?
If you're looking for a foundational understanding of personal finance concepts, the Personal Finance course may be right for you: as of early 2023, it has more in-depth coverage of the material.
If you're looking for up-to-date practical information to make real changes in your financial life, and if you like to practice what you're learning with exercises, we encourage you to check out the Financial Literacy course !
We're so glad you're here—have a great day, and keep saving!
Want to join the conversation?
Although I am 55, I am virtually finacially illiterate. I've been married for 31` years, and my wife has always been the book keeper and bill payer. I want to learn this stuff, so I can help her and perhaps someday take that over. I must be honest, I dealt with a learning disability all throughout school, and never got more than a few A's . I have not had math since 9th grade. So, I am taking a Kahn math course as well.(47 votes)
You go, mate! I am an advanced 8th grader taking this course for high school. However, one of my sayings is, "Who cares about what you didn't do then, if you're doing something awesome now?" So kudos to you for continuing your education.(15 votes)
- How do I invest in stocks? I am curious in investing in Amazon or a bigger company similar. I don't have a current income but am very interested in investing, some day. I know some people who invest similar to my age. I am 14.(9 votes)
You would go to a stock exchange or a stock exchange bank and inquire from there. However I advise you not to invest right now, everything is crashing and you could lose a lot of money.(11 votes)
How do i save money without using much?(4 votes)- A budget is by far one of the best things for this.
Budgeting is the practice of setting aside money for specific things.
For example:
Groceries
Gas and Car
Rent or Mortgage and/or land payment
Utilities / phone
Etc.
Your age will of course make a difference.
So depending on that you may only have a few food, gas and activity expenses.
First you find out roughly how much money you spend each month on necessities (Like food or gas if you're young and don't have bills yet). Then you set aside an amount that covers those necessities.
After you do that, you're able to take the remaining funds and divide it into categories. I recommend Savings, Emergency
**(Emergency is different than savings! This way, if something were to happen, you won't exploit your savings for the future or otherwise!)** and personal spending cash.
It can be equal or split into percentages where you save as much as possible, it is whatever works best for you. It is good to save money and will be easier since you have the want to do so.
I hope this helps you, please let me know if you have any questions and I'll be sure to get back to you. :)(5 votes)
- How to do option trading?(4 votes)
Option trading involves buying and selling options, which are financial contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific time frame.
1. Understand Options Basics
- Call Options give you the right to buy the underlying asset.
- Put Options give you the right to sell the underlying asset.
- Strike Price: The predetermined price at which the asset can be bought or sold.
- Expiration Date: The date by which the option must be exercised or it expires worthless.
2. Learn Key Concepts
- Premium: The price you pay to buy an option or receive to sell an option.
- Intrinsic Value: The difference between the current price of the underlying asset and the strike price, for in-the-money options.
- Time Value: The additional amount that traders are willing to pay for an option, above its intrinsic value, due to the time left until expiration.
3. Choose a Trading Platform
- Select a brokerage that supports options trading. Look for low fees, good customer support, and educational resources.
4. Open and Fund an Account
- You'll need to apply for options trading privileges, which involves answering questions about your trading experience and financial situation.
5. Start with Paper Trading
- Use a simulator to practice trading options without risking real money. This helps you gain experience and test strategies.
7. Place Your First Trade
- Choose the Right Option: Decide between call and put options based on your market outlook.
- Select the Expiration: Options with more time until expiration are more expensive but give the market more time to move.
- Determine the Strike Price: Weigh the potential for profit against the risk of the option expiring worthless.
- Decide on the Position Size: Never risk more than you can afford to lose on a single trade.
8. Manage Your Trade
- Monitor the market and adjust your positions as needed. Be prepared to take losses and don't let emotions drive your decisions.
Important Considerations
- Risk Management: Options can offer high rewards but also come with high risks, including the potential to lose your entire investment.
- Education: Continuously educate yourself on options trading strategies, market analysis, and financial news.
- Regulations and Taxes: Be aware of the regulatory and tax implications of options trading in your jurisdiction.
Options trading is complex and not suitable for all investors. It's crucial to thoroughly understand the risks involved and consider seeking advice from a financial advisor or a professional trader before diving into options trading.
Hope this helped! :)
- Tipy(1 vote)
what is investing in stocks and is it safe?(4 votes)- Investing in stocks means purchasing shares of ownership in a public company. These shares represent a claim on the company's assets and earnings. As you acquire more shares, your ownership stake in the company becomes greater. Stock investments are made with the hope that the value of the company will grow over time, leading to an increase in the value of the shares you own, which you can then sell for a profit.
However, investing in stocks comes with its risks. The stock market can be volatile, with share prices fluctuating due to various factors such as economic conditions, market sentiment, and company performance.
The stock market can go through periods of high volatility, with prices fluctuating widely in short periods. Market conditions can change rapidly due to external factors like economic downturns, political instability, or natural disasters.
Individual companies can face issues that may affect their stock price, such as poor management decisions, financial losses, or scandals. Investing in single stocks increases the risk, as your investment is dependent on the fortunes of that particular company.
Over time, inflation can erode the purchasing power of money. If your investments do not grow at a rate that outpaces inflation, you may lose real value.
While stocks are generally considered liquid investments, meaning they can be quickly sold for cash, there may be times when selling a stock quickly can result in a loss, especially if the market for that stock is down.
Changes in interest rates can affect stock prices. Generally, when interest rates rise, stock prices fall, and vice versa. This is because higher interest rates can reduce economic growth, making bonds and other fixed-income investments more attractive compared to stocks.
Despite these risks, many people invest in stocks because, over the long term, they have historically provided good returns compared to other investments like bonds or savings accounts. To mitigate risks, investors often diversify their portfolio across different stocks, sectors, and asset classes, and adopt a long-term investment strategy rather than trying to time the market for short-term gains.
It's important to understand that while investing in stocks offers the potential for higher returns, it also involves higher risk. Whether stock investing is safe for you depends on your financial goals, risk tolerance, investment timeline, and the amount of research and due diligence you're willing to put in before making investment decisions.
Hope this helped! :)
- Tipy(1 vote)
- ive seen lots of people make lots of money in stocks so i would like to know what is stocks and is it a gambol(3 votes)
- Is purchasing precious metals and cryptocurrencies a good hedge against currency debasement?(3 votes)
- I got too much questions.(3 votes)
- How to start saving?(1 vote)
by depositing money(2 votes)
how would I get an account to invest in different companies?
also, what would that be called?(3 votes)
