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Including Personal Finance in Home Economics

Even though many junior and senior high schools in the American public education system offer some type of home economics course, many of these do not cover the topics of the most basic type of economics: that of personal finance. Once offered as the female counterpart to shop classes, home economics covered topics such as cooking, sewing and budgeting. Now even those most basic of skills are no longer offered to many US students and it can be argued that this has resulted in the recent trend of young families carrying far too much unsecured debt and upside-down mortgages.

The simple solution would be for home economics to be not just offered, but considered mandatory, for all students in the late junior high classes. Instead of making pillows, stuffed animals and gelatin molds, students could be taught how to manage their own finances at each step of the process. From shopping for the best rates at banks and insurance companies, to creating a household budget and spending plan, to planning for savings and retirement, the concept of home economics would address a multitude of the lacking areas in personal finance education.

In addition to these basic skills, students could also learn about investments such as a stocks and bonds, and could even learn to prepare their own simple tax returns. Teaching responsibility to teenagers is never easy, however, if introduced early enough the concept has a good chance of taking hold and helping them maneuver into adulthood without acquiring credit card debt. Every teenager should be shown how to fill out a job application, receive help and practice with the interview process, and at a bare minimum, be able to balance a checkbook or understand services like PaydayOne.com. Bringing an updated version of home economics back into the US public school system would ensure these results.

Filed Under: Financing

The Basics of Student Loans

It can be stressful and overwhelming to consider the financial aspect of attending a university. What is more, with costs of higher education continuing to rise, many students decide to take out student loans and also loans with Payday One. The loan process can be confusing and discouraging. Here are answers to some basic questions.

What Loans Are Available to Students?

While students can apply for private loans, most students choose to use the federal financial aid options, designed especially to help college students afford higher education. The federal government offers several need-based scholarships for college students. Some of these loans are available to only the most needy of students, while others, such as the subsidized Stafford loan, are available to students in need of more financial aid. There is also an unsubsidized loan that is available to almost any student in varying amounts.

Should I take out another loan?

With college becoming so expensive, it is very difficult to graduate from college without any debt. However, students should think twice before planning on taking out another loan. Graduating with a lot of debt can add a lot of stress for a graduate when finding a job, especially in tough economic times, as the minimum monthly payments can be crushing for a struggling graduate. While living frugally or working more are certainly an option for avoiding more debt, students can also graduate early by taking transferable courses online with elearners.com.

What is the policy on repayment?

Many loans available to students through the government do not have to be paid back until the student is no longer attending school. These loans also then offer a six month grace period after graduation, with monthly payments beginning after that time. Often, the loan can be deferred if the student is entering a graduate school. Most loans allow for advanced payment, or of completing the repayment of the loan ahead of the payment plan.

Filed Under: Business, Captial, Financing Tagged With: , ,

The Emotional Comparison Of The Roller Coaster Ride To The Stock Market

The changing numbers of the Stock market have the power to instill fear and joy all within a few minutes. Many people have compared the ride to a roller coaster. In fact, they are not that far off in the description of the ride the Stock market can take in a single day, a week, month or even year. The scariest part of any roller coaster is right after it has crested and is on its way down. The same is true of the stock market. A sudden drop usually spells trouble and has the same type of sickening effects as dropping off of the top ledge. Thrill seekers love the sudden rush of adrenaline that comes with the anticipation of the drop. But when it comes to money, that drop translates directly to fear. The loss of money is very real. This reality translates into lost dollars and a loss of faith in the system overall. The highs in the Stock market are a bit different. But anticipation and fear share definite commonalities with the ride of the roller coaster. As the cars climb higher, the anticipation of the upcoming rush is very real. The same is true as the numbers climb higher. There is the anticipation and rush of how high they will go. The fear of not selling at the exact right time and the fear of it all coming down in a flash. While the roller coaster is a short ride, the stock market ride lasts as long as your money is invested into it. This means a series of emotional ups and downs that can last for quite awhile. For long term investments, the advice is not to look. Of course, the ride only lasts as long as you are willingly to stay on the trip.

Filed Under: Business, Financing

How To Read Stocks

When learning how to invest in stocks, the first thing you may look at are the stock quotes in your newspaper. If you do not know what you are looking at, it can be confusing and frustrating. Here is a quick way to decipher stock quotes.

The first two columns on the stock pages are the high and low of the past year. This figure does not include the previous day. It gives you a good idea of how the stock typically fluctuates.

Column number three lists the name of the company as well as what type of stock it is. If there are no letters following the stock name, the stock is considered a common stock. The letters PF after a stock name indicate that it is a preferred stock.

The fourth column is the ticker symbol of the company. This is a unique combination of letters that stand for the company name.

The fifth column is only filled out if the company pays dividends to its shareholders. The number is the annual payment per share that a stockholder will receive.

Column six is the dividend yield. This is the percentage that you will receive as a return on the dividend. It is calculated by dividing the dividend by the price per share.

Column nine and ten tell you how high and low the stock went that day, with column 11 being the closing price.

Finally, column 12 tells you the net change, the difference in the closing figure from the previous day to the present.

Just knowing what each column represents will help you to make a better informed decision on what stocks to buy. It will also help you to keep track of your stocks and how they perform, which will help you decide what actions to take. This is just the beginning of learning all the ins and outs of the stock market.

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The Reality of Business Loans

Many business owners or perspective business owners need capital to begin to operate their business. The cost of running a business might be more than you have in your savings account. Sometimes you aren’t comfortable dipping into your personal safety net. For these reasons, people often take out a loan from the bank. Many people think taking a loan from the bank is a fairly straightforward process. You ask for money, they check your credit, they approve or deny. The truth is that the loan is not nearly that simple. It takes a lot to get a loan, but very little to be rejected for a business loan. So here is the short version of how a loan works.

When you approach a banker about getting a loan, you are coming to see them with a game plan. You must have a reason for wanting the money, and a way for paying the money back. This couldn’t be a bigger part of the heart of the process.

A banker will look at a few things when it comes to your business proposal. They want to know what you are planning to do with that money. They want to know why you feel your business will be successful. They will also want to know if you have any collateral that they can take if you cannot pay back the loan.

Giving them a good game plan is key. Telling them you are taking a gmat prep course to get enrolled in further business education will be key for them in giving you a loan. You have to have more than a good credit score if you want them to take you seriously as an applicant. Getting a loan is a tricky thing for a business, that’s why preparation is a must.

Filed Under: Business, Financing Tagged With: ,

What Are Convertible Bonds?

Many investors struggle to choose between stocks and bonds to fill their portfolio. In some cases, convertible bonds can be a good choice for people stuck in between these two options. Convertible bonds are unique in that they offer some benefits of both bonds and stocks, a balance of protection from economical fluctuations and the option to capitalize on a stock that is headed up.

Buying convertible bonds allows the investor to convert the bonds into shares of stock at a pre-set ratio of bonds to stocks. When an investor buys the bond, they are given the price of the conversion that will apply to the bond in the future.

If an investor wants to see how many shares of stock they would receive for their bonds, they would divide the par value, always $1,000.00 at the time of the bond’s issue, by the pre-set conversion price to get the conversion ratio for the convertible bond.

Convertible bonds allow investors to have the security of a bond and a pay-out each year, while maintaining the option of converting it to a common stock. An investor may choose to convert their bond to stock if they see that the company is doing well and has the potential for growth in the future.

The drawback of convertible bonds is that if all convertible bondholders were to convert their bonds to stocks, the stock might experience loss because the stockholder’s equity, or earners per share, would be diluted.

Convertible bonds provide flexibility and the potential for capital appreciation, while providing them with greater security than either preferred or common stocks. For these reasons, buying convertible bonds can be a good choice for the investor who wants the best of both worlds and two options available to maximize their potential to grow their money.

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