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financial planning chapter 8
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In a Business Week article, Mr. Ben Steverman discuses issues facing today’s youth. The article is titles “Advice for Young Investors.” The article discuses two individuals who are 22 years of age, both are just beginning their careers. One individual is attempting to pay off student loans quickly and then save money to travel. The other individual is attempting to purchase real estate and invest within the market. Mr. Steverman discusses ten important factors for which young investors need to consider when approaching the market. The first subject is the matter of cash, cash, and cash. Mr. Steverman states that individuals need to have readable access to a relatively large proportion of cash. It is recommended that young individual have access to ten thousand dollars worth of cash. However in today’s market it is recommended that individuals have readable access to an amount of cash that is in the range of fifteen to twenty thousand dollars. The need for readable access to cash is for the possibility that you may lose your job. The main reason of the readable cash is so that if an individual needs the cash for an emergency the individual will be able to access it at their own bank. This cash can be used for a wide array of things in the case of an emergency. If an individual losses their job, they will need to pay bills and purchase food. The amount of the money may differ if the individual is engaged into a family, as the family will have higher bills and needs for money. Secondly is the need for sufficient insurance. If you become disabled, disability insurance will cover your living expenses in the event that you become disabled. As today’s youth is more concerned with what is taking place in today and tomorrow, they are... ... middle of paper ... ...it is most recommended to take full advantage of that opportunity. While it is very important for young individuals to start to save and invest for their retirement, there are aspects that they should consider before jumping into investing into securities. Those subjects are cash, enough insurance, should you buy a home, how secure is your job, how much risk can you handle, equities are risky, get started, do everything, be flexible, and can you save and invest too much. These ten aspects should be looked at, analyzed, and taken into very critical thought before saving and investing into securities. Works Cited Steverman, Ben. "Advice for Young Investors - BusinessWeek." BusinessWeek - Business News, Stock Market & Financial Advice. 7 Apr. 2009
The greatest investors in the world all understand one common theme when it comes to successful investing, “markets are volatile and they fluctuate.” Whether it is real estate investing or investing in stocks, there is an inherent risk. Therefore, new investors who are trying to decide whether to invest their available capital in real estate or stocks must learn to understand their own risk tolerance. To understand risk successfully, new investors must first learn some of the pros and cons of both real estate investing and stock market investing.
People living with disability most likely doesn’t get much chance to earn money and usually have more medical expenses. The disabilities of children and adults affects the socio-economy of entire family. Due to their illness and disability, most of the organization do not hire people with disability in their workplace. According to the Survey of Disability, Ageing and Carers in 2009, people with disability of age 15-64 years looking for work, the most reported difficulty to find work was their own poor health or disability (35%). They were facing difficulty also of their lack of the essential skills or education (13%). Likewise, people with disability who apply for work, doesnot get employed as their long-term illness or injury was the main
For students, knowing how to handle their money is essential to their success. Students need to learn how to invest it to make it grow. For example, if a student wants to start a business one day, and 45% out of two thousand aspire to do so, will need to learn all the aspects of managing a business (Valerie J. Calderon, 2011). There are special standards that teachers have to cover when teaching a subject. There are many standards covered throughout an economics class, and there are many that can help make sure that the student is successful when they wish to start their business. The first subject is found in Standards 2.1 and 2.3 through 2.11, i...
It is hard for adolescents to look at their own lives and not feel as accepted as they would like to feel. As the saying goes, “Growing up isn’t easy.” By their teen years, they often feel like they are not cool or popular enough. Many of them look up to celebrities and the media on how to be in the popular crowd. There is so much influence on young minds through television, internet or even magazine advertisements. This definitely makes a great target for advertising agencies. Many companies target young people because they freely spend their money and do not have expenses like adults. One company which takes part in this big campaign is Winterfresh. Winterfresh is successful in convincing teenagers that their gum is perfect for them, because of their comment about peer pressure, making breath icy fresh, and displaying an exciting atmosphere with friends.
...(which they do not control)” (Taleb). People should become more involved with the financial process. A person should save their money for the future instead of relying on investments to pay off. When investing they should choose things that are low risk and not take a large gamble.
Unlike a game of Monopoly, investing is not something a person can simply roll the dice and walk away from. Moreover, investing possesses two possible outcomes. For starters, investing can make someone extremely rich. On the other half, investing can bring someone into a complete state of poverty. Moreover, the similarities among investing and gambling remaining apparent. Furthermore, both of these things remain a high-risk endeavor. Moreover, neither one of these things can guarantee a victory. With that being said, some investors manage to defeat the odds and become wealthy. In particular, these investors include Warren Buffett and Timothy Armour. For those unaware, these investors have managed to obtain an insurmountable amount of wealth.
Have you ever invested money in stocks or maybe received savings bonds as a gift? Those are just a few different types of investments that could potentially help with future plans. It is very smart to start investing money at a young age to prepare for the future and there are many different types of investments that individuals can use to achieve future goals. According to www.fool.com, If you were to invest one hundred dollars as a fifteen-year-old and receive a ten percent investment rate every year, at the age of sixty-five years old you would have made $1,083. Investing your money rather than saving or spending it is smarter and can help you with your future plans.
With thousands of stocks, bonds and mutual funds to choose from, picking the right investments can confuse even the most seasoned investor.
Students should be required to take a personal finance in high school to further there education with financial skills.Many students could benefit from the class if they pay attention.Annamaria Lusardia There are 34 states that include personal finance within there curriculum upsaid“we need to teach the basics of economics and finances so people can make financial decisions in a changing world.” There is only 13 states that require students to take a personal finance course or include the subject in a economics course
I am a 19 year-old college student attending Grand Canyon University and majoring in Business Administration currently maintaining a 4.0 and credit status of a junior. During my first year here I have become involved in various business clubs to broaden my view of the world along with meeting new individuals to broaden my network. Through this experience one thing has been reoccurring throughout each one of these clubs and that is the idea that investing is dangerous and risky and should be avoided until you have money to spare. This misconception about investing is a major cause for millennials to stray away from the stock market to safer methods of saving like just putting all
Plenty of teens nowadays don't realize the significance of earning and to spend. These folks were not oriented that investing is required even if they are still students. Being a parent, you play a vital role in this region.
The second lesson concentrates on the importance of financial literacy. There is one rule to follow so as to understand financial literacy – “Know the difference between an asset and a liability, and buy more assets.” In order to do this, you need to be able to understand and comprehend numbers instead of jus...
A common problem for the people of today is when is the right time to invest. There are two main stages in investing, early stage and late stage. Both of these have their pros and cons in terms of risk and reward. This reoccurring problem has been going of for tens of years ever since investing has become a major part of income. Even though investing in a company during their early stages can consequences, the reward is far greater than investing in the later stages of a company.
It is no doubt that money is something that is needed in everyone’s lives. Our clothes, food, health insurance, education, and so many more require money. Many individuals understand the significance and benefits of money. When you have good income and financial resources, you will be given freedom and choices in this life. There are some people who love to gain dsemore money and there are also some people who loathe spending money even on necessary things. These are called money attitudes, in other words, people’s personalities towards money. There are studies and researches on people’s attitudes towards money because it influences them financially and it can determine whether they can achieve financial success or not. There are three basic
They observed that millennials have less trust in banks and financial institutions because of the Great Recession. Millennials are more educated when it comes to financing big purchases compared to previous generations. The research also shows that 80% of millennials believe they should start saving for retirement as soon as possible. Most millennials were making their break in the “real world” when the Great Recession broke out, not only did this affect their trust in financial institutions, but it also made them take financial matters into their own hands. Millennials financial stability is on the rise and growing at a much faster rate than their counter generations. Millennials are becoming more diverse with their investment options and especially taking into consideration the need to save for their future. This article exemplifies this case for millennials and their