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Financial Literacy, Online banks and brick-and-mortar banks give the same…
Financial Literacy
Investing
Stock market
The collection of markets and exchanges where stock buying and selling takes place. Other financial securities can be traded there as well (exchange-traded funds (ETFs), corporate bonds, and derivatives)
Brokers: professional individuals or digital platforms that handle the transaction of a stock for you
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Online/discount broker: Executes transactions and gives advice depending on how much you have invested
Robo-advisor: Executes trades and can pick investments without human assistance and without consulting a person
Stocks
Grants partial ownership of the company. This entitles stockholder to portion of the company's assets and earnings.
ETF's
An exchange-traded fund is a collection of securities like stocks. ETF can invest in many industries at once. It is less risky than stocks.
Mutual funds
Consists of a portfolio of stocks, bonds, or other securities. Give investors access to diversified portfolios at a low price. Less risky because of the variety it gives. Very similar to an ETF
Bonds
Issued by companies, municipalities, and governments to finance operations. investor is lending their money to the bond issuer, with the promise of repayment with interest.
Credit Card
Credit card allow you to borrow money from the bank instead of using your own money from your account
If balance is not paid at the end of the month for the money borrowed, interest is accumulated
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Credit score
A number that sumarizes a persons credit history. Credit scores can have a big impact on your odds of getting approved for a credit card.
Types of credit cards
Travel rewards cards: offer points redeemable for travel
including flights, hotels, and rental cars
Cash-back cards: receive a small portion of spending back, in cash or as a credit to your statement.
Balance transfer cards: allows transferring your balance to a lower-rate credit card to save money and pay off balance
Low- or No-APR cards: a card with low interest rates for people who pay balance in full by the due date
What is it?
Importance
Making a good financial decisions helps you avoid high levels of debt, emergency funds being stable, and retirement plan.
Financial literacy is the ability to understand a variety of financial skills such as management, budgeting, and investing.
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Budgets
Budgets involve tracking how much money you receive and spend per month. Subtract the amount of money being made by the money being spent to have a clear idea on what expenses need to be cut or can be added.
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Online banks and brick-and-mortar banks give the same services, the only difference they have is the online banks doesn't have a physical building, henceforth you can't visit them in person.
Emergency Fund: it can be any amount of money saved to help you deal with financial difficulties such as job loss, medical expenditures, or car repairs.
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Retail Banks: It's a type of bank that is common used ar which people have accounts. They are profit companies that offer checking and savings.
Bank Accounts
A high-yield savings account typically provides a substantially higher rate of interest than a conventional savings account. High-yield accounts typically involve greater initial deposits, larger minimum balances, and more fees in exchange for earning more interest on your money.
A checking account is a bank or other financial institution deposit account that allows you to make deposits and withdrawals. Checking accounts are relatively liquid, allowing many withdrawals per month (in contrast to less liquid savings or investment accounts), yet they generate little or no income.
Savings Accounts: A savings account is a deposit account that pays interest at a bank or other financial organization. Savings accounts normally yield low interest rates, but their security and dependability make them an appealing option for storing available funds for short-term requirements.
Credit unions: Credit unions provide savings and checking accounts, issue loans, and offer other financial products, just like banks do.
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