I wish every high school student was taught Personal Finance.
The course could cover how to put together a budget, how surprise credit cards fees can lead to dropping out of college, how to negotiate prices and fees, and the great Einstein quote:
“Compounding is the 8th Wonder of the World.”
For much of my life I avoided money conversations. I proudly announced that I “didn’t care” about money. But money is energy, and, like anything, can be a great blessing. So finally, like a gardener, I learned to grow it.
I learned that one of the great differentiators between the very wealthy and the middle class is the former’s willingness to invest in the stock market and stay there through hard times. But before I contacted my first Financial Advisor, I wanted to understand the basic vocabulary. Now I’m passionate about helping other “beginners” get Stock Market savvy.
Interested? Take the Quiz below:
TRUE OR FALSE?
- Equities are the same as stocks.
- Large Cap stocks are riskier than Small Cap.
- An Adviser gets a percentage of your investment assets.
- The S&P 500 is a stock market index that measures the performance of 500 of the largest companies on the stock exchange.
- Bonds are less risky than stocks.
- Bond values go down as interest rates go up.
- Growth stocks are those that are less popular.
- Index Funds are not managed, but Mutual Funds are, causing Index Funds to be less expensive to invest in.
- The IRA maximum contribution for 2021 is $10,000.
- A benchmark is a good way to measure the performance of a stock over time.
The answers are below. If you missed 3 or more of the above, may I recommend a simple and practical guide book on the subject: SMART WOMEN LOVE MONEY by Alice Finn. (Click HERE to order yours from Amazon.) Or just sit down with a good teacher. Either way, don’t wait as long as I did to learn the language.
Own your financial power. You’re worth it.
(Answer Key: 1, 4, 5, 6, 8, 10 are True.)