http://www.youtube.com/watch?v=2JwdIWjVHaU
http://prospect.org/csnc/blogs/ezraklein_archive?month=02&year=2009&base_name=why_social_security_is_not_in
http://www.carloan.com/car-loan-news/best-cars-for-bad-credit.aspx
http://www.youtube.com/watch?v=zR2vZdEyoRY&feature=related
http://www.investingvalue.com/investment-articles/index.htm
http://topics.nytimes.com/top/reference/timestopics/subjects/c/credit_and_money_cards/index.html
http://www.youtube.com/watch?v=2JwdIWjVHaU
http://www.huffingtonpost.com/2011/05/14/medicare-social-security-_n_862017.html
http://www.nola.com/education/index.ssf/2011/02/gentilly_terrace_students_lear.html
http://www.youtube.com/watch?v=NYyExGc6mfQ
http://www.youtube.com/results?search_query=ira+retirement++songs&aq=f
http://www.ehow.co.uk/video_4971227_get-preapproved-home-loan.html
Sunday, May 22, 2011
What we think!
We think the most important topic is the credit cards. We both thought credit cards was a bad thing but we learned that they actually can be a very good thing. We learned that the benefits of credit cards are: earlier consumption, convienence, use for emergencies, and establishment of a good credit history. You just have to be a smart spender, because they are very easy to abuse and the balance can add up quickly. We think that the best time to use credit cards is when it is something small, you know you can pay it back, and/or when there is an emergency.
Investments
Stocks- investors have to purchase shares offered by a specific company. Profits increase when the shares value increases, also if shares values decrease so do the investors profits. When you buy stock you own part of the company, its not really relevant unless you buy a lot of stock.
Mutual Funds- its a collective investment that puts money together from investors to buy stocks and
bonds. Mutual fund investors can make much more money if the stock does well.
Bonds- a contract designed to pay back borrowed money with interest and fixed intervals.
http://www.investingvalue.com/investment-articles/index.htm-artcle about investing
Mutual Funds- its a collective investment that puts money together from investors to buy stocks and
bonds. Mutual fund investors can make much more money if the stock does well.
Bonds- a contract designed to pay back borrowed money with interest and fixed intervals.
http://www.investingvalue.com/investment-articles/index.htm-artcle about investing
Friday, May 20, 2011
Buying a new home or car
Process of getting a loan:
1.Speak to your bank
2.Make an application
3.They will do a desk review (by the lender)
4.Decide whether you get the loan or not
Down payments are important because you can eliminate Private Mortgage Insurance, it can give you smaller mortgage, and give you instant equity.
Time frame of a loan affects you because you have to pay it back over a certain amount of time and if you don't interest rates go up, and it is bad on your credit.
Value changes of your car or house because after you use it over time it loses value.
Things you should know:
1.Make sure you have good credit
2.Aim for something you can afford
3.Put down a down payment
http://www.carloan.com/car-loan-news/best-cars-for-bad-credit.aspx
http://www.ehow.co.uk/video_4971227_get-preapproved-home-loan.html
1.Speak to your bank
2.Make an application
3.They will do a desk review (by the lender)
4.Decide whether you get the loan or not
Down payments are important because you can eliminate Private Mortgage Insurance, it can give you smaller mortgage, and give you instant equity.
Time frame of a loan affects you because you have to pay it back over a certain amount of time and if you don't interest rates go up, and it is bad on your credit.
Value changes of your car or house because after you use it over time it loses value.
Things you should know:
1.Make sure you have good credit
2.Aim for something you can afford
3.Put down a down payment
http://www.ehow.co.uk/video_4971227_get-preapproved-home-loan.html
Thursday, May 19, 2011
Credit Cards
Some of the charges on credit cards are late fees, interest rates, and just overall charges of the credit card.
How to apply for credit card- it depends on what kind of credit card you want to apply for, but you mainly just go to a store and tell them you want to apply for a credit card. After you fill out the application they will tell you how much spending money you have.
Pros of a credit card- you have an earlier consumption, it is very convenient, there always there for emergencies, you can establish good credit history.
Cons of a credit card- the cost goes up if the unpaid balance is not paid monthly, ties up future income, it is very tempting to overspend, it reduces comparison shopping if you only shop in stores extending credit, and it decreases future buying power.
Tip- 1. Be responsible with buying
2. Pay the monthly bills
3. Use mainly for emergencies
http://topics.nytimes.com/top/reference/timestopics/subjects/c/credit_and_money_cards/index.html
This is an article about credit cards
How to apply for credit card- it depends on what kind of credit card you want to apply for, but you mainly just go to a store and tell them you want to apply for a credit card. After you fill out the application they will tell you how much spending money you have.
Pros of a credit card- you have an earlier consumption, it is very convenient, there always there for emergencies, you can establish good credit history.
Cons of a credit card- the cost goes up if the unpaid balance is not paid monthly, ties up future income, it is very tempting to overspend, it reduces comparison shopping if you only shop in stores extending credit, and it decreases future buying power.
Tip- 1. Be responsible with buying
2. Pay the monthly bills
3. Use mainly for emergencies
http://topics.nytimes.com/top/reference/timestopics/subjects/c/credit_and_money_cards/index.html
This is an article about credit cards
Retirement!
An IRA is a private investment funded by your own money. 401k is through your work place and involves both contributions from your work and yourself.
Social security is a fund from the government that helps pay retired people. The reason it is such a big issue is because people think the money is going to run out and not be any left for the future retired.
It is important to look at retirement funds now as opposed to 10 years from now because if you invest money for your retirement 10 years could get you a lot of money.
This link says why Social Security is not in danger:
http://prospect.org/csnc/blogs/ezraklein_archive?month=02&year=2009&base_name=why_social_security_is_not_in
This is saying it is in big danger:
http://www.huffingtonpost.com/2011/05/14/medicare-social-security-_n_862017.html
Social security is a fund from the government that helps pay retired people. The reason it is such a big issue is because people think the money is going to run out and not be any left for the future retired.
It is important to look at retirement funds now as opposed to 10 years from now because if you invest money for your retirement 10 years could get you a lot of money.
http://prospect.org/csnc/blogs/ezraklein_archive?month=02&year=2009&base_name=why_social_security_is_not_in
This is saying it is in big danger:
http://www.huffingtonpost.com/2011/05/14/medicare-social-security-_n_862017.html
Personal Budget
Fixed expenses are the expenses that are the same monthly, such as rent or any bills.
Flexible expenses are the expenses that is for other stuff, such as entertainment, clothes, and other fun stuff.
Compound interest is when interest is added onto your principle amount, and the amount of interest is based on the amount in the bank each year. So if you put $100 into the bank account with 5% interest you will get $5 back the first year, then 5% of $105, and so on.
Simple interest is when interest stays the same every year. So if you put $100 into the bank and you have 5% interest. You get $5 every year.
Savings are very important. If you save a little every month you will have accumulated a greater sum of money, which you could have for important things.
I would tell someone to save as much as possible every month, even if it isn't that much.
It is okay to spend money reasonably, because you need to save for the essentials but still have fun.
This link shows the importance of savings, by students being taught it in schools.
http://www.nola.com/education/index.ssf/2011/02/gentilly_terrace_students_lear.html
Flexible expenses are the expenses that is for other stuff, such as entertainment, clothes, and other fun stuff.
Compound interest is when interest is added onto your principle amount, and the amount of interest is based on the amount in the bank each year. So if you put $100 into the bank account with 5% interest you will get $5 back the first year, then 5% of $105, and so on.
Simple interest is when interest stays the same every year. So if you put $100 into the bank and you have 5% interest. You get $5 every year.
Savings are very important. If you save a little every month you will have accumulated a greater sum of money, which you could have for important things.
I would tell someone to save as much as possible every month, even if it isn't that much.
It is okay to spend money reasonably, because you need to save for the essentials but still have fun.
This link shows the importance of savings, by students being taught it in schools.
http://www.nola.com/education/index.ssf/2011/02/gentilly_terrace_students_lear.html
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