Finance Basics
Finance basics cover fundamental concepts including money management, interest rates, inflation, and how financial markets operate to facilitate economic activity.
Compound Interest
Compound interest calculates returns on both the initial principal and accumulated interest, causing wealth to grow exponentially over time rather than linearly.
Debt Management
Debt management involves strategies for borrowing responsibly, understanding loan terms, maintaining good credit, and developing payoff plans to minimize interest costs.
How Financial Markets Work
Financial markets facilitate the buying and selling of securities, commodities, and other assets, connecting buyers and sellers while determining prices through supply and demand.
Inflation Explained
Inflation is the rate at which the general level of prices rises, reducing purchasing power and affecting the real value of money over time.
Interest Rates Explained
Interest rates represent the cost of borrowing money or the return on lending, influencing economic activity, investment decisions, and savings behavior.
Macroeconomics Basics
Macroeconomics studies the economy as a whole, examining aggregate indicators like GDP, unemployment, inflation, and national income to understand economic growth and cycles.
Microeconomics Basics
Microeconomics analyzes individual and business decisions regarding resource allocation, studying supply and demand dynamics in specific markets.
What is Finance?
Finance is the management, creation, and study of money, banking, credit, investments, assets, and liabilities that make up financial systems.