Building Financial Literacy. Creating Future Leaders.
Even though many people use banks every day, they do not understand the big picture of how banks work. Many people see banks as a place to save money, get loans, or open checking and savings accounts. However, they fail to realize how banks are also businesses, and the goal of most businesses is to […]
With the 2020 election fast approaching and with global warming entering center stage, carbon taxes have been in the news. A carbon tax is, as the name implies, a tax which businesses must pay when they produce carbon emissions with the goal of solving the climate crisis. While the proposal is increasingly called too little […]
Amidst ongoing trade tensions and a slowing global economy, the Federal Reserve has just lowered the federal funds rate by 25 basis points (0.25%). The last cut of the federal funds rate was in 2008, as the financial crisis was unwinding. However, the United States is in no financial crisis: there is solid job growth, […]
Almost every politician in America will agree on one thing; public investment in infrastructure is unacceptably low. President Trump has pushed infrastructure week, and most democratic presidential nominees have announced sweeping plans to invest in infrastructure. But in reality, even with these new plans, America’s infrastructure is far behind – foolishly behind – its rising […]
Are robots going to steal your job? Not exactly, or at least not in the way you might be imagining it. But in a way, they already have. Think about it. From customer service to transportation, there are tons of instances of humans being replaced by machines. There’s no way around it: both automation and […]
Money is often cited as one of the biggest sources of stress for Americans. One of the rising solutions to help fight the stresses of managing finances is with the help of mobile apps. From budgeting to debt payoff, there are all sorts of personal finance apps to help you stay on top of things. […]
What activities do you do? What are your plans after high school? What do you want to study? What profession do you want to pursue after college? Every high school student faces these same daunting questions from curious adults and teachers. But how does one get even the slightest idea of what they want to […]
The short answer: it depends. Not everyone is going to spend and save the same percentage of their income each month. However, deciding upon a feasible plan to allocate your monthly spending is important, and something that everyone should be doing once they receive an income. Currently, Americans have one of the worst savings habits […]
In the past few years, the marijuana industry has expanded at an unprecedented pace, and has not looked back. The recent legalization of recreational cannabis in Canada, as well as continual legalization in states has paved the way for manufacturers, wholesale distributors, and shops to take advantage of the rapidly growing market. Marijuana-based IPOs have […]
As much as investing is crucial to our economy, so are the rules which regulate it. As shown in history, when regulation was misguided or lacking, massive financial and economic crises have happened, most notably the Great Depression and Great Recession. Why are regulation so important? Most clearly, they prevent the misconduct which places excessive […]
Seven Things Students Can Do to Guarantee Future Financial Success For many students finishing up high school and heading to college, the prospect of planning for your financial future might seem intimidating. Between taking steps towards financial independence and learning how to rely on yourself as a primary income source, trying to navigate the world […]
With admissions rates dropping and college tuitions rising, making decisions about which college to attend or what to study can present students with a difficult set of challenges. Often, labels of prestige and other societal preconceptions can overwhelm the decision making process. Fortunately, there are a number of tools that students can employ to help […]
If you have ever held on to money for an extended period of time, you may have noticed the money being worth less. Perhaps you were saving money to buy a new phone, but when you checked the price again it went up by twenty dollars. Perhaps you noticed that, although your wages went up, […]
It seems like the US economy crashes every decade or so, and there is some fact in this; the US economy and every other economy undergoes alternating periods of expansion and depression. This phenomenon is called the business cycle. What is the business cycle? Specifically, the business cycle refers to the fluctuation of the economy […]
The 401(k) retirement account is one of the best ways to save for retirement. Unfortunately, living off Social Security just isn’t a reality for everyone, so being able to understand how to use retirement accounts to its fullest is crucial. In this article, I will detail what a 401(k) is, a little bit about the […]
Just as heart rate and blood pressure are used to measure well-being, economists rely on a number of indicators to help them understand the health of the economy. Although economic indicators can meet a wide range of definitions, certain indicators like the rate of unemployment or the price level are often seen as some of […]
If you follow the markets closely, you have likely heard of the infamous “inverted yield curve.” Many experts on CNBC may link this flip to a coming recession, or a bear market. The stock market responds to the news of the curve reversal with strong selling. Today, the indicator has just made its presence known […]
When looking at a market, leftists see a means by which the rich can exploit the labor of the poor to build on their fortunes. Proponents of economic freedom would see rational actors negotiating fair prices through competition, the effect of what Adam Smith called the “invisible hand” of the market. Both are correct only […]
You may have heard someone say “There is no such thing as a free lunch”. This phrase was commonly said by Milton Friedman, a Nobel Prize winning economist. What Friedman meant is that even if someone else takes you out to lunch, there is still a cost, such as the time and energy you spent […]
In an earlier lesson, we introduced one of the most fundamental relationships in economics: supply and demand. In order to best make sense of the relationship between supply and demand, it is important to understand each element individually. Previously, we covered demand, which is defined as the level of desire for a good or service […]
There are a lot of misconceptions about unemployment, the unemployment rate, and the labor force. The term “unemployment” seems to imply that it represents all members of a country’s population that are not working — intuitively, this makes sense. However, the term is more nuanced, and there is a reason for that. With various macroeconomic […]
Have you ever noticed that swimsuits are cheaper in the winter than in the summer? Or that it will cost you less to go to the movies on a Tuesday morning than it will on a Saturday evening? These everyday observations can be explained by one of the most fundamental concepts in economics: supply and […]
One of the most important technical indicators to value investors is the P/B ratio, or the Price to Book ratio. This ratio effectively describes the fundamental value of a company relative to their balance sheet. This strategy has been largely pioneered by the most famous value investors of all, Benjamin Graham and Warren Buffet. The […]
If you don’t have much experience with economics, the subject might seem daunting and obscure. You might even assume that economics is all about money and finance, and that it has nothing to do with your daily life. This is far from the truth. First of all, it must be understood that economics is a […]
My obsession with finance and economics has opened many doors. From gaining interest in AP Microeconomics and Macroeconomics, to investing avidly in the stock market, I’ve learned many things. I’ve realized that human nature is in fact a force that must be reckoned with in economic analysis, and I’ve realized that history may be destined […]
One of the most important reasons to invest and save is retirement; in your lifetime, you need to accumulate enough wealth to continue supporting yourself without income, and the paltry sums which social security entitle you are just not enough to live off of. In this lesson, I will talk about one way to store […]
For 80 years, humans have been placing themselves in metal tubes that whiz around the earth’s atmosphere at 600 miles per hour. Today, Elon Musk is doing the same thing, only instead of putting these vessels miles into the air, he is planning to place them on the ground. The Hyperloop is a light, aerodynamic […]
With tax season quickly approaching, many Americans are yet again faced with the daunting task of filing their returns. Taxes are nearly always given a bad reputation, for their confusing nature and because of the incredibly mysterious tax laws that the United States currently has in place. However, understanding the tax system of one’s country […]
Investing and trading are two different types of stock market strategies. Generally, the investor seeks to create slow and steady returns through investing in companies’ business plans and balance sheets. The trader, on the other hand, seeks to make risky short-term plays in market equities, often entering and exiting a stock position in seconds. Both […]
Getting a loan is one of the most important things in the life of an adult which the US education system has failed to teach its students. It allows us to set up our lives without having the money to do so. In this article, I will try to talk you through, step-by-step, getting a […]
On May 6, 2010, the Dow Jones cascaded into a nine percent plunge. Down nearly 1000 points, the markets were in an absolute frenzy. Blue chips with solid fundamentals and no surprises in the news were shocked with losses as high as 40%, in just 30 minutes. Then, equities climbed right back up as fast […]
Dividends are often the key factor for long term investors in differentiating between risky and safe plays. In time of great market volatility, or even bear markets, an expected cash quarterly cash payout is a safe haven for investors. The global markets are heading for a 10 year expansion, but some underlying risks do remain […]
Diversification is one of the most basic but important tools used to manage risk within a portfolio. Before we jump into why diversification is so important, let us first define the term. What is diversification? Diversification in a portfolio is when an investor buys assets of all different types. A well-diversified portfolio will have different […]
Credit is an important financial concept that each and every individual in an economy must be aware of and understand. Whether you want to buy goods with a credit card, or want to be able to take mortgage loans from the bank so that you can buy a house, you must have a good understanding […]
In 1908, Henry Ford revolutionized transportation by bringing the Ford Model T, the first mass-produced automobile, to market. Today, we are in the midst of another revolution in transportation: autonomous driving. It’s a buzz-phrase that has been around for a while, but is only recently truly coming to fruition. Car companies and tech giants alike […]
Society loathes the investor, and it’s quite clear why. They seem to profit off pure luck and others’ hard work, and very tellingly, their income is legally called unearned. Additionally, their irresponsibility and greed have caused the Great Depression and the Great Recession, resulting in a fervent anti-Wall Street movement. But in reality, they actually […]
With a net worth of over $80 billion, Warren Buffett has already cemented himself into the annals of stock market history. Buffett’s conglomerate Berkshire Hathaway has grown its assets to the hundreds of billions, and currently has major stakes in dozens of large market capitalization companies. However, although Buffett’s success may instill awe in the […]
The reform journalists in the early 1900s have made monopoly into a bad word. Every worker and consumer in America scorn the word as if it was cheater or exploiter, still conjuring an image of the strike-crushers and robber-barons who made millions in oil and steel. As a result, no company today wants to be […]
According to Robinhood, “Getting started with a small amount of money is better than not investing at all.” This statement greatly reflects why you should begin your investing career in Robinhood. Offering free trades, an easily understandable platform, and the ability to easily buy and sell equities, Robinhood is quickly becoming the top choice for […]
As the level of debt in the United States continues to increase, the country cannot continue to ignore unchecked federal spending and increasing student debt. According to Just Facts, government debt alone is equal to “105% of the U.S. gross domestic product,” and “617% of annual federal revenues.” By 2050, it is estimated that U.S. […]
What is the stock market? You may have heard of the NASDAQ. What about the NYSE? Have you heard of the CME? All of these are exchanges, or places in investors or traders can purchase or sell securities or equities (such as stocks, bonds, or commodities). What is it? The stock market is a place […]
As you are handling your investments or reading the news, you might come across the word bond. What is a bond? What does it do? When is it appropriate to buy? In this article, I will try to explain the basics of financial bonds in the simplest terms. How does a bond work? A bond […]
When you think of the world “macroeconomy,” you likely think of a magnified economy – the economy of a nation, perhaps even a global economy. This is the right idea. The macroeconomy is a certain economic institution or system that operates on a large scale. Rather than reducing economic units to the household or the […]
Predicted to have the world’s largest economy by 2030, China has continued to prove to be a financial powerhouse for the past decade. With a GDP growth rate of at least 6% every year since 2008, China is a force to be reckoned with. However, recent trade war tensions and Beijing’s crackdown on corrupt Chinese […]
This is going to be a boring but very important lesson. When investing, knowing the actual current value of a financial instrument is important. This current value, known as the present value, is less than the value of the cash returned at a future date because of the time value of money. Money in your […]
You gotta spend money to make money, or more accurately it takes money to make money. This is true because when capital is invested, it generates interest proportional to the investment. Therefore, the larger the investment, the larger the return. This is great if you have tons of money because it means you can make […]
When it comes to applying for your summer internship, part-time job, or just building your professional network, one of the most important components is your resume. Your resume is a document that compiles all of your information for employers and professionals to review. You will open new doors just by having a well-written one page […]
As students, we are often told to follow our passions and do what we love, but it can be hard to know what those passions might be without any experience. One of the best ways to gain experience in areas you are interested in is through real-life experiences, like internships and shadowing. The only issue […]
Overview According to CNNMoney, year to date the S&P 500, a standard benchmark for growth in the investment community, has hit record highs by reaching an 18.67% return (as of 7/9/19), signalling strong economic growth at the heart of the United States economy. The impressive growth exemplified by the S&P 500 is just one indicator […]
In 2018 alone, over 2.5 billion user accounts were hacked. Information including personal details, emails, and bank accounts was compromised. With more people using the Internet every day, hacking and identity theft are becoming a growing danger. As a result, people must learn good security habits in order to ensure the safety of their financial […]
Recessions are inevitable; like the old saying, what goes up must come down. And at the time of the writing of this article, the economy has gone ten years without a serious crash, which has raised fears of another recession soon. In the next recession, as in all others, many will lose their jobs and […]
Only 40% of Americans are able to cover an unexpected $1,000 expense. This means that most Americans are in fact living paycheck-to-paycheck; this also means that a small car accident or an unexpected health issue would render most Americans helpless and in debt. However, in America, a land of excess and consumerism, saving money is […]
Tesla (TSLA) is one of the most recognizable names in the electric vehicle market and rightfully so. Under the leadership of company CEO Elon Musk, Tesla has made a name for itself through the production of cutting edge electric vehicles designed to shake up the traditional automotive industry. The company’s flagship car, the Model S, […]