When you are evaluating how to spend your money, most people make a fairly simple comparison – if the benefit you think you will get from the purchase is bigger than the cost, then most people go ahead with the purchase. When you are working to master your personal finances, you might notice a problem. Read More…
Collectively, as a society, we are invited everyday to buy something for various reasons. For instance, we see an ad on TV for a car; so later we go to the dealership and pick-up some information about the car, with the objective being to purchase one. The advertisement on TV is the business marketing the Read More…
Picking Stocks – The Basics The most challenging aspect of starting to invest is picking the first few stocks to add to a portfolio. Every investor has their own techniques and strategies, but we want to give you the tools you need to place your first trades, and get your portfolio off to a running Read More…
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What is a Stock? Large companies that have lots of investors often issue “stocks” or “shares” to the investors as a way of showing ownership. If you bought 100 shares of a company you might get a stock certificate like the one below indicating your ownership. If you decided you no longer wanted to own Read More…
Definition: A “Ticker Symbol” is a unique one to five letter code used by the stock exchanges to identify a company. It is called a ticker symbol because the stock quotes used to be printed on a ticker tape machine that looked like the images below. When it printed the stock quotes, it made a tick-tick-tick Read More…
Experienced workers have a job search lasting about 43 days, and fresh graduates can expect a longer wait. Your search will be much harder if you make one of the following very common mistakes. Avoiding all 5 will not promise an interview, but hitting any might mean you are missing out. Errors In Your Application When you are applying Read More…
The internship season is upon us. It might be better to say that it never ended. Some estimates put the total number of internships in the United States a bit over 1.5 million positions per year, and with new spots opening with every school term, students with an eye for work experience are usually keeping Read More…
What separates a “good” job interview from a “great” one? There are many factors that will work for or against you when you head in for an interview for a great job. Some factors you don’t have much control over, but most job interview “bombs” are very easy to avoid, if you know what you Read More…
Keywords – the Achilles Heel of every student’s resume. Knowing how to craft a killer resume and cover letter that grabs employers attention (and keeps it) will only help once you get your resume in the hands of a recruiter. Unfortunately, today anyone can apply to just about any job anywhere, so that great new Read More…
Homeowner’s Insurance is a broad type of insurance coverage designed to cover a home and the property it sits on. This insurance is very broad, wrapping many different types of coverage into one package. If you want to take out a mortgage on a home, the institution you borrow from will probably require you to Read More…
Why Invest in Stocks? Simply put, when you have money to invest for an extended period of time (like 20 years or more), the stock market historically has provided the greatest return. When most people are able to save money, they usually put it in the bank. Banks usually pay interest on the cash in Read More…
“Rental Insurance” is taken out on property you rent to insure against damage. Rental insurance works like a lighter version of Homeowner’s Insurance. Why Would I Need Rental Insurance? As a renter, this insurance does not do you much good. For example, if there is a fire at your apartment caused by one of your Read More…
The most challenging aspect of starting to invest is picking the first few stocks to add to a portfolio. Every investor has their own techniques and strategies, but we want to give you the tools you need to place your first trades, and get your portfolio off to a running start. Establish Goals Before choosing Read More…
Definition A stock quote represents the last price at which a seller and a buyer of a stock agreed on a price to make the trade. Because stock prices are determined by a continuous auction process between buyers and sellers, stock prices change frequently as the buyers and sellers change. Prices also change as new Read More…
Mutual Funds are a way you can buy into a wide range of stocks, bonds, money markets, or other securities all at once. They are professionally managed, so you are basically buying a piece of a larger portfolio. Definition Mutual Funds come in several different “flavors”, but the core concept is always the same: the Read More…
Definition: Bonds are essentially a much more formal I.O.U (I owe you) used to borrow money. You buy the bond in return to interest over a given period of time. When a corporation or government needs money they issue bonds that people buy. In turn, the issuer (the person who sells the bond) takes the Read More…
How Do I Build a Diversified Portfolio? Understanding what it means to build a diversified portfolio is one of the first concepts a new investor needs to understand. When talking about stocks, diversification means to make sure you don’t “put all of your eggs in one basket.” What Does It Mean To Diversify? Simply put, Read More…
Definition: The Dow Jones Industrial Average, more frequently know simply as the Dow or the Dow Jones, is a stock market index made up of 30 of the largest publicly-owned companies based in the United States. It is a price weighted index meaning that the index’s price is an average of the price of the Read More…
If you drive a car, you need to be covered by some sort of car insurance. You have probably seen dozens of advertisements from insurance companies claiming to help lower your rates, improve your coverage, or just help you compare, but before you buy your first insurance (or change providers), the first step is knowing Read More…
What is Competition? “Competition” is when many producers try to sell similar goods to the same set of consumers. The producers need to “compete” to try to attract more consumers, usually by lowering prices, offering better versions of the goods or services, or through marketing. Competition is the core concept of the Market Economy. Why Read More…
Once you file your income taxes, the IRS will review all the forms you submit, and either issue your return or refund, usually with very little turnaround time. However, occasionally the IRS will ask you to provide some supporting documentation before your return is accepted. The Basics of an Audit An “Audit” is what happens Read More…
Everyone loves getting tax breaks, but what can really ruin your finances in the long-run is forgetting about tax additions – extra taxes and fees that you need to add on to your tax bill. Missing these extra taxes will hurt – taxpayers are currently charged 6% APR on all outstanding tax balances. This means Read More…
What Is Sales Tax? “Sales Tax” is a tax that is charged on goods sold to end customers. The Sales Tax is a set percentage of the price of the goods sold. In the United States, all states except Alaska, Delaware, Montana, New Hampshire, and Oregon charge a sales tax, but the sales tax will Read More…
Short Term Financing “Short Term” financing means taking out a loan to make a purchase, usually with the loan term at less than a year. There are many different types of short-term financing, the most common of which are “Buy Now, Pay Later”, “Unsecured Personal Loans”, and “Payday Loans”. Short Term Financing VS Credit Cards Read More…
What are Credit Cards? Credit cards is a form of unsecured credit (meaning a loan without collateral) that you can use to make everyday purchases. All credit card purchases are made using a loan – you borrow money from your credit card issuer, and later pay it back with interest. Credit Cards Vs Debit Cards Read More…
Before Debit Cards Before the 21st century, if you wanted to buy groceries or visit the mall, you had 4 options that you could use to pay, all of which had their own drawbacks: Cash, checks, credit cards, and short-term financing. Cash is always reliable to make a purchase, but is prone to being lost Read More…
Beginners trying to tackle their personal finances for the first time see debt as sort of a “boogeyman”, a specter that looms overhead, trying to trap people into inescapable cycles of minimum payments and late fees. Or at the very least, something to be avoided whenever possible. Deep down, we all know this is not Read More…
Automatic Payments – Blessing Or Curse? That title may be a bit hyperbolic – Automatic Bill Payments can be a huge time saver, and do help make sure your bills get paid on time (avoiding late fees and general headaches). This does come at a price, though – when your bills are automatically paid, you Read More…
When learning about managing your finances, many experts will recommend you begin with a budget. A budget is a tool that tracks income and expenses, and it allow you to set goals and make plans for the future. Developing a budget for a specific project, for a special event, or to help you with your Read More…
Your parents probably have experience reconciling their checkbook by comparing your own written records with their bank statements. In today’s world, reconciling your checkbook isn’t a common activity for two reasons: Paper checks probably only account for a small amount of your total expenses per month You probably have an automatic record with your bank’s Read More…
When you are getting your financial records organized, it is important to keep track of your spending, and with your spending comes receipts. If you think about a typical shopping trip, it is easy to accumulate several receipts quickly as you shop at different stores, stop for a bite to eat, and fill up your Read More…
V-S-E is the World’s #1 Free Global Stock Market Game, with stocks, currencies, and commodities from over 30 different countries around the world. Our trading platform is used by over 20,000 teachers and 200,000 students every year to learn about personal finance, investing, economics, mathematics, and social studies. Our site also includes an expansive Learn Read More…
See our collection of personal finance, economics, investing, savings, business, math, and social studies lesson plans to kick start your class. Includes over 50 lesson plans ranging across every grade level, with suggested class activities and ways to integrate the stock game and other learning resources, both for in-class activities and homework.
There are over 600 articles, videos, and calculators in the Personal Finance Lab Learn Center. However, we have selected the best 100 for use in personal finance classes, with integration with the Pfinlab Assignments feature.
You can find the underlying stock price, along with the option strike price, expiration date, and whether it was a “Put” or “Call” right from the option symbol! AAPL1504L85 is the way we write our options and can differ from other websites or brokerages. Our options are written: Symbol Year Day (Call or Put and Read More…
By kidseconposters.com Companies issue stock to raise money to finance business operations. Stock represents ownership in a company. Thus, if you are a stockholder, you own part of a company. A stock certificate shows how many shares you own.
By kidseconposters.com For individuals, saving is the part of one’s income that is not spent. People often place their savings in banks and credit unions, which in turn lend the money to businesses and other individuals. Sometimes people use their savings to purchase financial securities, such as stocks or bonds. It is important to save Read More…
By kidseconposters.com Investing in capital goods occurs when businesses purchase capital goods in order to increase the productivity of workers. This investment always involves some risk.
By kidseconposters.com Financial institutions encourage people to save by offering interest on savings. They loan these savings to businesses and consumers. Banks compete with one another to attract savers and borrowers. The goal of the bank, like any business, is to make a profit.
By kidseconposters.com People often put their savings into financial investments like stocks, bonds, or certificates of deposit. Some of these are more risky — but have the potential of a much better rate of return — than less risky investments. Research the financial investments below. Rate each according to risk and return — with 10 Read More…
These activities are designed specifically to cater towards younger students using the stock game
Teaching a personal finance class? We have some great class ideas on how to integrate the portfolio simulation and educational content with your classes!
To be “In Debt” means to owe money to someone else, usually making fixed payments to pay back the amount over time, plus interest. Debt means different things to different people – having some debt is perfectly healthy for your personal finances, but too much can leave you buried. There is also a major difference Read More…
An “Investing Strategy” is a plan for how to save money to help it grow. Sometimes an “investing strategy” can just mean “plan for trading stocks”, but it really means a lot more. Liquidity, Risk, and Potential Returns All investments balance liquidity (how easily it can be converted into cash for other use), risk (the Read More…
What Is Credit? “Credit” is when you have the ability to use borrowed money. This can come in many different forms, from credit cards to mortgages. There is a wide range of ways to use credit, which means that it is often a challenge for beginners to learn all the different ins and outs of Read More…
When should someone start planning for retirement? Fidelity Investments recommends most young people try to save up 2x their annual salary by the time they turn 35, which is a pretty good benchmark to shoot for. Unfortunately, retirement is so far off the mind of most young people that they find their retirement account is Read More…
What is “Labor”? “Labor” is how much a person works. It is the use of time and exertion of effort to produce something of value. Generally speaking, the more valuable a person’s labor is, the higher their wage. Skilled And Unskilled Labor Each person starts off as an Unskilled Worker, meaning they do not have Read More…
“Unemployment” is a major economic indicator measuring how much of the working population is currently looking for a job. The unemployment rate is the most “tangible” economic indicator – if GDP is going up or down, it is harder for people to notice in their day-to-day lives. When the unemployment rate goes up, it usually Read More…
Definition “Price Controls” are artificial limits that are put on prices. If the limit is put in place to prevent prices from getting too high, they are called Ceilings. If they are in place to prevent the price from getting too low, they are called “Floors”. Price Ceilings Price Ceilings are controls put in place Read More…
What Are Interest Rates? Interest rates are growth rates – it is a percentage that is used to calculate how much a loan or investment grows over time. Interest rates are most commonly associated with borrowing money, like a homeowner taking out a mortgage or a government selling a bond. The interest rate is how Read More…
Definition Scarcity refers to the fact that resources are finite – people and organizations need to allocate their finite resources between their infinite wants. Each year, the world produces more goods and services, along with better technologies and processes that can increase output farther. Even with this growth, there will always be scarcity, because there Read More…
Definition “Specialization” is when a labor force begins to divide total production, leading to a rise of experts or specialists. This is called the Division of Labor, and it typically results in much higher productivity of labor. How Does It Work? Specialization has two main parts – Division of Labor, and a rise of Experts. Read More…
Definition “Opportunity Cost” is what needs to be given up to get something. This is different from an item’s price. Imagine you want to buy some stock for your virtual portfolio – you can afford one share of either Apple () or Alphabet, Inc. (). Your Opportunity Cost of buying one is that you cannot also Read More…
Everyone knows about costs and benefits of doing something – the pros and cons of making a choice. Marginal benefit and marginal cost are different – they look more closely at doing slightly more or less of different alternatives. Marginal costs and benefits are extremely important to producers when choosing their inputs and prices. [gtranslate] Read More…
What is Competition? “Competition” is when many producers try to sell similar goods to the same set of consumers. The producers need to “compete” to try to attract more consumers, usually by lowering prices, offering better versions of the goods or services, or through marketing. Competition is the core concept of the Market Economy. Why Read More…
What Is The Business Cycle? The Business Cycle is the broad, over-stretching cycle of expansion and recession in an economy. The Business Cycle is concerned with many things – unemployment, industrial expansion, inflation rates, but the most important indicator is GDP (Gross Domestic Product) growth. Below you can see a graph of the GDP growth Read More…
What does it mean to be an Entrepreneur? An Entrepreneur is someone who takes a risk to start a new business. Nearly every business that exists (apart those created as spin-offs of other businesses, or by government intervention) was started by one or several entrepreneurs, who took a risk to launch a new company. Who becomes Read More…
Definition Economic Incentives includes anything that pushes people, businesses, and governments to do one thing or another. This includes what products you buy, what career you choose, what products businesses produce, and what government programs are put in place. Incentives for Individuals Each individual faces many economic incentives every day. If you are in school, Read More…
Definition In Economics, an “Externality” is a benefit or cost that is not reflected in the price of a good or service. Why do Externalities Exist? Prices are determined by the relationship between the supply and demand of a good or service (for details, see our article on Supply and Demand Examples in the Stock Read More…
What is Economic Growth? Economic Growth means that the economy is growing – more goods and services are being produced and consumed than they were before. The most common measurement of economic growth is the Gross Domestic Product (or GDP), which measures the total number of finished goods and services produced in an economy in Read More…
Definition A “Contract” is a legally binding agreement between two parties (people, companies, or both). Having a contract means that if one party does not keep their word, the other can sue them in court to either force them to fulfill their side of the agreement, or pay back compensation. What Makes A Contract Binding? Read More…
Definition “Economics” is often called the Dismal Science – it studies the trade-offs between making choices. The purpose of economics is to look at the different incentives, assets, and choices facing people, businesses, schools, and governments, and see if there is any way to improve outcomes. This is done by looking at how supply and Read More…
Have you ever wanted to start a business? Maybe you want to know the difference between a lemonade stand and Minute-Maid, besides just the size of the companies. Different types of companies have different levels of liability (meaning level of responsibility) for the owner or owners. What this means is that the more liability an owner has, Read More…
This is a basic lesson plan talking about what savings bonds are, how the government uses revenue from bonds, and why it might be a good way to start saving as early as possible. We have more resources on Bonds available in our Education Center, but you can also give your students a great interactive Read More…
When talking about Banking, people generally group Banks, Credit Unions, and Savings & Loan companies all in one group. They do provide similar services, but they each have specific differences that might make them a better or worse fit for your financial needs. What They Have In Common All three of these institutions can do Read More…
Definition of Spending Plan A “Spending Plan” is exactly as it says – a plan of what you will be spending each month. There are usually two parts – your “fixed” spending and your “variable” spending. The fixed part is usually the same every month, with things like rent/mortgage payments, grocery bills, insurance, and car Read More…
Definition When we think of money, stored value means anything that isn’t cash, but you can still use to transfer value – checks, debit cards, gift cards, and forms like that. These are used to transport some dollar amount which we can later exchange for goods and services. Each of these forms of stored value have their Read More…
Definition of Wealth “Wealth” means having an abundance of something desirable. This can be tangible, like money and property, or intangible, like good health or freedom. Intangible Wealth Just because something does not have a monetary value does not mean it is worthless. Having strong connections with friends and family is often considered a major Read More…
As you begin working with financial institutions to secure your money and process your financial transactions, it is important that you learn to keep good financial records. These records, both on paper and electronic, will allow you to know where your money and assets are and exactly how much you have at a given time. Read More…
Fractions What is a fraction? A “Fraction” means one piece of a whole. You can use fractions in any case where it might be useful to look at something in parts, rather than the whole thing at once. The most delicious fractions are slices of pizza. If the pizza is in 8 slices, we know Read More…
In this article we will be looking at how you can use Excel to keep track of your account’s performance. This is meant as a basic guide for people who have little or no experience with Excel. Using Excel To Track Your Stock Portfolio – Getting Some Data Before we can do anything with Excel, Read More…
Definition “Major Economic Indicators” are numbers that you can look at to try to get a picture of how well the economy is doing. Different indicators measure different parts of the economy, but their main characteristic is that they measure the same thing in the same way over time. This means that you can compare the Read More…
The stock market determines prices by constantly-shifting movements in the supply and demand for stocks. The price and quantity where supply are equal is called “Market Equilibrium”, and one major role of stock exchanges is to help facilitate this balance. We can use the stock market to give some great supply and demand examples with Read More…
Definition In Economics, “Demand” is the relationship between prices and how much people want to buy a good or service. Details As the market price of a good goes up, the amount of that good that people are willing to pay generally goes down. This is because each person puts some value on the good – Read More…
Definition In Economics, “Supply” means the relationship between prices and production. In general, the higher the market price of a good or service is, the more producers are willing to sell of it. Details As the market price for a good goes up, companies want to sell more of it to try to make greater profits. Read More…
Comparing Economic Systems There are many different economic systems that try to result in more equality or faster growth. The structure of a country’s economy has a lot to do with the country’s politics and the values of its population. However, the economy of every country also changes over time, and how it falls between Read More…
Definition The Federal Reserve Bank, or the “Fed”, is the central banking system of the United States. It serves as the primary regulator of the US dollar, as well as the “lender of last resort” for other banks. Regulating Currency The Federal Reserve works to maintain the interest rates that banks use to lend money to Read More…
Definition The Reserve Requirement is how much of all deposits that a bank is required to keep “on hand”, meaning in its vaults, or on deposit at the Federal Reserve Bank (in the United States). Details The “Reserve Requirement” is about 10% of all money that has been deposited at a bank. Because of how Read More…
Definition The stock market crash of 1929 was a massive crash in stock prices on the New York Stock Exchange, and marks the largest financial crash in the United States. Details The stock market crash came in multiple parts – the initial crash on October 28 (a 12.87% drop) continued into October 29 (a 11.73% drop), Read More…
How Is Money Created? In the United States (and many other countries), the question “How is money created?” comes up a lot. The treasury isn’t just printing cash all day, if they were the government debt would be zero! In the US, money is created as a form of debt. Banks create loans for people Read More…
Definition Cottage Industry, or the “Putting Out System” is a production system of producing goods that relies on producing goods, or parts of goods, by craftsmen at home, or small workshops, instead of large factories. History The contractors would then create the goods at home, or their “cottage”, and deliver them upon completion. The major Read More…
Definition A stock quote gives essential information about a particular stock at a point in time. The quote normally includes information such as the name of the company, the ticker symbol, the price, the day’s high and low prices, and the trading volume. Details Usually when you get a stock quote, you see lots of Read More…
Definition: A “Ticker Symbol” is a unique one to five letter code used by the stock exchanges to identify a company. It is called a ticker symbol because the stock quotes used to be printed on a ticker tape machine that looked like the images below. When it printed the stock quotes, it made a tick-tick-tick Read More…
What is a Stock? Stock is defined as a share of ownership in a company. If you own a company’s stock, you own a percentage of the company itself. This includes partial ownership of its assets (like equipment, vehicles, and buildings) and partial ownership if its income and profits. The main reason people purchase stock Read More…
The most challenging aspect of starting to invest is picking the first few stocks to add to a portfolio. Every investor has their own techniques and strategies, but we want to give you the tools you need to place your first trades, and get your portfolio off to a running start. Establish Goals Before choosing Read More…
Mutual Funds are a way you can buy into a wide range of stocks, bonds, money markets, or other securities all at once. They are professionally managed, so you are basically buying a piece of a larger portfolio. Definition Mutual Funds come in several different “flavors”, but the core concept is always the same: the Read More…
ETFs are a fairly new way that you can buy a large group of stocks, assets, or other securities all at once. ETFs trade just like stock; you can buy and sell shares of an ETF throughout the day on an exchange. Definition “ETF” stands for “Exchange Traded Fund”, which is exactly how it sounds; Read More…
Definition: The Dow Jones Industrial Average, more frequently known as the Dow or the Dow Jones, is a stock market index made up of 30 of the largest publicly-owned companies based in the United States. It’s a price weighted index meaning that the index’s price is an average of the price of the 30 stocks Read More…
What is a Balance Sheet? The Balance Sheet (or Statement of Financial Position) is one of the four financial statements required by the SEC based on the U.S. GAAP (Generally Accepted Accounting Principles). According to the SEC, the Statement of Financial Position presents “detailed information about a company’s assets, liabilities and shareholders’ equity.” In other Read More…
Definition: The Income Statement is one of the financial statements that all publicly traded companies share with their investors. The income statement shows the company’s sales, expenses, and net profit (or loss) over a period of time–usually 3 months, year-to-date, and twelve months. The income statement also comes with a lot of notes and discussions Read More…
Fractions What is a fraction? A “Fraction” means one piece of a whole. You can use fractions in any case where it might be useful to look at something in parts, rather than the whole thing at once. The most delicious fractions are slices of pizza. If the pizza is in 8 slices, we know Read More…
Are your students studying the global economy or the stock market? Are they aware of publicly traded companies in the global market? This lesson provides research opportunities for students as they locate and investigate global companies listed on the DOW, NASDAQ and the New York Stock Exchange (NYSE).