Tag saving

We should learn personal finance since it is essential to live a healthy, happy and secure life. Our understanding of budget, saving, debt and investing will affect every part of our life. Personal finance skills are very important in our life and many of the American states require students to take a high school course in personal finance. It is an unquestionable fact that personal finance is a necessary skill that should be taught in schools as well as colleges. Lives of youngsters are affected by their financial knowledge and money management skills.

Money plays a vital role in career decisions, buying house, getting married and having children. Personal finance is a part of everyday life in 2023 and beyond and many of the young adults lack personal finance knowledge today. A large chunk of Americans want personal finance taught in schools and some people believe that personal finance education should be started in elementary schools. Many Americans believe that school sponsored personal finance education should be put on the political agenda. It is a great idea to add mandatory personal finance education to the public school curriculum.

Understanding the Importance of Personal Finance

Many of the financial problems can be alleviated with a comprehensive knowledge of personal finance. Young adults should understand the importance of personal finance and they can learn the importance of not borrowing more than we can afford through personal finance education. Learning the dangers of credit cards, high interest rates and importance of paying credit cards off are essential. The important rule in saving for retirement is to start early and youngsters of today are not taught the importance of compound interest as well as time. It has been pointed out that financial literacy leads to a healthier life and the plus points of learning personal finance are huge.

Having personal finance education promotes good savings habits and budgeting teaches awareness along with responsibility. Smart financial decisions affect an individual’s credit score which impacts every sphere of their life including getting a job, applying for a credit card, renting an apartment, buying a home, buying a car, signing up for power bill and getting insurance. More jobs, more money and less debt are good for the global economy and it can be achieved through personal finance education. Understanding money management leads to financial health and positive attitude towards money. Many American citizens prefer alternative sources of money advice as well as information.

Personal Finance Education as a Priority for Higher Education

There are Americans who are self taught about personal finance and many of them were taught by their teachers. School and college going children should have a clear knowledge about applying for financial aid for college, housing costs, transportation costs, insurance costs, food expenses and everyday expenses. They should master the art of living on their own, credit, credit cards and taxes. It is fact that high school students are underprepared for their financial future and personal finance education should be made a priority for high school education today. Many college students don’t have an idea of how payment of student loans will affect their budgets. Personal finance education provided in high schools and colleges leads to successful life free of financial difficulties.

Personal finance sites provide wide range of information about diverse financial and investing topics. They cover saving, budgeting, debt management, investing tactics, and retirement planning. Personal finance sites are helpful in increasing financial literacy and making wise financial decisions. There are numerous personal finance sites where certified experts provide sound financial advice. Some of the best personal finance sites include Wise Bread, The White Coat Investor, Financial Samurai, Money Under 30, The Millennial Money and The College Investor.

Wise Bread

Wise Bread is a personal finance site helpful in making wise investment and financial decisions. It has received several prestigious awards including About.com’s “PC Magazine’s Top 100 Websites”, “Personal Finance Blog of the Year”, and “Kiplinger’s Best Financial Blogs”. Wise Bread stories are syndicated by renowned media outlets including Yahoo, US News and World Report, Entrepreneur Media, Reader’s Digest and The Huffington Post. The focus of Wise Bread is on personal finance and frugal living.

The White Coat Investor

The White Coat Investor is a personal finance site that showcases independent advice on personal finance and investment for the uber rich. It is designed exclusively for doctors, dentists and other wealthy individuals. The White Coat Investor was established with the unique purpose of educating and empowering medical professionals to make informed financial decisions. This personal finance site features articles, blog entries, podcasts and forums.

Financial Samurai

Financial Samurai was launched by Sam Dogen, after the well known financial crisis of 2007-2008. It is an undisputable fact that Financial Samurai has completely changed the personal finance landscape in an elegant way. Financial Samurai is unquestionably America’s number one personal finance site with glorious reputation. It is perfect for people passionate about financial independence in the post Covid world.

Money Under 30

Money Under 30 offers advice to individuals on a variety of topics including how to begin investing, how to save the initial $1000, and how to pay off school loans. It is best for individuals looking for information rich personal finance website. Money Under 30 focuses on wide variety of financial topics like mortgages, savings accounts, credit cards and auto insurance. Financial advice for young adults is the unique feature of Money Under 30 that makes it stand apart.

The Millennial Money

The Millennial Money is a personal finance site started by The Motley Fool and it was created by Grant Sabatier. The site is aimed towards younger generation and it covers topics including saving, investing and borrowing. The Millennial Money is all about saving, investing and borrowing. The information provided in the Millennial Money helps individuals to gain financial independence sooner.

The College Investor

The College Investor, the prominent personal finance site, focuses on student loan repayment, money management and wise investing choices. It is a personal finance site for beginners and individuals can achieve their financial objectives with the solid advice given on The College Investor. The College Investor offers wealth of information on passive income and it features news, product reviews and comparisons. This personal finance site is a leading resource for helping people get out of student loan debt and start investing for the future.

It is a well known fact that personal finance is a process of planning and managing personal financial affairs. Personal finance deals with saving, investing, spending, banking, insurance, mortgages, investments, retirement planning, estate planning and tax. Understanding the essentials of personal finance is necessary for making smart decisions with money. Personal finance for beginners is a roadmap to financial security and freedom in the contemporary age. It helps us to prepare for life’s unexpected events like job loss, illness or disability.

Income, spending, saving, investing and protection are the vital aspects of personal finance. There is no one size fits all solution for personal finance and the best way to manage personal finance is dependent upon individual circumstances. We should make sure that our income never exceeds our spending and it is important to save as much money as possible after paying for essential expenses like mortgage, rent, insurance, and utilities. It is an elegant idea to invest in well established and low cost mutual funds.

The Importance of Mutual Fund Investments

Mutual funds are investment vehicles that raise money from investors and invest it in the stock market or bond market. Diversifying assets form the basics of personal finance for beginners in the post Covid world and enrolling in 401K and 403B are excellent options. There are three types of different mutual funds: growth funds, income funds and hybrid funds. The selection of mutual fund depends on individual needs as well as goals and it has been pointed out that a growth fund only invests in stocks. Investing in growth fund for a lengthy timeframe is recommended and growth funds will return lucrative benefits compared to income funds and hybrid funds.

Income fund invests in bonds and dividend paying stocks and they are less risky than growth funds and hybrid funds. They pay interest and dividends once a month or every three months. Hybrid funds are mutual funds with features of both growth funds and income funds. They are less volatile than growth funds and more volatile than income funds. The basics of personal finance include the power of compounding money and the most common types of insurance include automobile insurance, homeowner’s insurance, umbrella insurance, disability insurance and life insurance. A typical automobile policy plan covers bodily injury, liability for property damage, bodily injury caused by uninsured motorists, property damage caused by uninsured motorists and medical expense benefits.

Buying an Umbrella Insurance

Homeowner’s insurance policy coverage includes home construction supplies, personal properties, loss of use, and personal liability for each incident. Buying an umbrella insurance policy will be beneficial if a person has numerous assets and it is also known as additional liability insurance. Disability insurance benefits can be paid for work related illnesses or injuries in special situations that are outlined by law.  In a nutshell, personal finance is the financial planning that an individual or a family undertakes to earn, save and spend money. Having a clear knowledge of concepts in personal finance like setting financial goals, budgeting, investing, saving, retirement planning and insurance planning help an investor to make sound financial decisions. Investors should ensure that they have an emergency fund to cover unexpected expenses and investing money wisely is important.