Have you ever watched the evening news and wondered what the anchor meant when she said: “…and the Dow closed 50 points in choppy trading today.”
Have you ever watched Mad Money on CNBC as the host screamed BUY BUY BUY or SELL SELL SELL and clapped your hands with his energy while having no clue what was happening?
Have you watched a movie where successful Wall Street characters dropped cool sounding financial jargon and you smiled and nodded without knowing what they were saying?
Have you ever had someone talk about Roth IRAs and 401Ks, and as you nodded, your heart was racing?
Have you ever received multiple credit card solicitations in the mail and wondered which ones to sign up for or even if to sign up for any at all?
If you answered yes to any (and maybe all) of the above then this class is for you.
Want to better understand investments? How credit works? How and why insurance products like life insurance, health insurance, and property insurance might be relevant for you? How to maximize your retirement savings? This course aims to make finding the answers to these questions, and many other similar questions, interesting and fun.
This personal finance course is divided into four modules: investments, credit, insurance and retirement. Each module is independent and may be studied on its own, although studying them together provides a deeper understanding of the interconnectedness across modules and the various tradeoffs across them.
Throughout the course, we will explore interesting and relevant real world examples so that you can better understand the underlying concepts. We will also relate relevant academic research to the topic on hand and show how the research findings are relevant to your daily financial decisions.
This course provides practical, ready-to-use solutions to use in your daily life. All solutions may not be equally important for you given your age and priorities, but they will certainly be relevant to you at some point in your life.ß
How to manage your finances and make better financial decisions
The time value of money
Basics of stock markets and investments
The proper role of credit and how to use it judiciously
How insurance works
The interplay between investments, credit and insurance
The importance of saving for retirement sooner rather than later
Why study Personal Finance?
What is “Time Value of Money” (TVM?)
TVM Part 1 (The simple stuff)
TVM Part 2 (Annuities); applications of annuities in the real world; theory of investment decision; trading versus investing; beta
All about stocks, stock ownership, where they trade, how they trade and all things related to stocks and trading that you wanted to know but were afraid to ask including the importance of stock tickers and the exchange where they are listed. We will also discuss the research and how it fits in with your needs.
Part 1: Stock indices, mutual funds and exchange traded funds.
Part 2: Bonds and all about bonds including the research evidence and what it means for you.
Part 1: A quick look at stock options (call options and put options). Option pricing.
Part 2: Banking and credit cards. Credit scores. How to build it and destroy it too.
Part 1: Microfinance and the research findings
Part 2: Insurance Basics and different insurance products and how it can work for you. What does the research say?
Part 1: More about insurance and about health insurance reforms in the United States.
Part 2: Retirement
Part 1: More Retirement
Part 2: Bringing it all together. The prescription for the “perfect” financial life.