Otázka: Money matters
Jazyk: Angličtina
Přidal(a): Janaris
Money matters
- I would like to speak about financial literacy, types of financial services, bank accounts, cards, how to solve finance-related problem and so on.
Definition of financial literacy:
- It is an ability to understand how money works in the world or it is set of skills and knowledge that allows people to make effective decisions about their money. I think we should learn it at school as well.
Types of financial services:
A bank or an insurance company are financial institution that offer various financial services to their clients. Among basic services are:
- Providing loans (= it means lending money to clients)
- Providing mortgages (= a loan that you use for purchasing of real property)
- Providing various types of insurance (health, casualty, life, travel, property damage, car insurance)
- Investments – you can take an expert advice on how to enhance your wealth
Investments:
- People invest their money, because they expect to earn more in the future. The benefit from investment is called a return. We can divide investments according to various aspects: short-term, long-term, low-risk, high-risk
Bank accounts:
Accounts allow us to transfer or save money.
- Current account – offers various payment methods to allow customers to distribute their money directly to others ( you usually get a credit card)
- Credit account – thanks to a credit card you can spend more money than you own (in fact you spend money belonging to a bank)
- Savings account – offers better interests, but payment methods are more limited than on a current account
Interests:
We have 2 types of interests:
- Money that you pay a bank for a loan (the higher interest tis the more money you pay back)
- Money that a bank pays you for money on your savings account ( the higher interest tis the more money you get)
And finally there are tips how to save more money and avoid finance-related problems:
- If you want to spend more, earn more(try to find part-time job for example)
- Consider all purchases if they are really necessary(don’t buy useless things)
- Don´t trust offers promising you get rich quickly and easily
- Don´t sign any contracts you don´t understand
- If you spend a lot of money, pay in cash (you know better how much money you spend)
- Write down a budget of your expenses and incomes
