Market Watch

[Paystar]

Wish I understood more about how things like that work. The banking/financial topic makes my head spin. When I hear CD I think about music. Lol.

And here is a complaint I have had since my kids went to school.....instead of all the stupid stuff they teach kids in school, why do they not teach them from an early age about banking, investments, mortgages, etc???

My schooling never had anything like that, nor did my parents teach me anything about it. I got RIPPED OFF when I bought my first home when I was 19. Then it was a steep learning curve by the time I bought my current property.

 

[Cahaba Valley Farm]

And here is a complaint I have had since my kids went to school.....instead of all the stupid stuff they teach kids in school, why do they not teach them from an early age about banking, investments, mortgages, etc???

My schooling never had anything like that, nor did my parents teach me anything about it. I got RIPPED OFF when I bought my first home when I was 19. Then it was a steep learning curve by the time I bought my current property.

I have been asking myself the same question here lately. I don't know if I would have really paid much attention to it or taken it seriously when I was back in school. The older I become the more I become a believer in the best education is the one you give yourself. Whenever something is spoon fed to us we just don't appreciate it as much.

 

[2manyrocks]

Part of the problem is the finance textbooks tend to be written from a mathematics perspective instead of a practical, real world view. The math part turns students off when they actually find the real world stuff interesting. The key, IMO, is to talk about the real world issues and then introduce the math solutions as ways to analyze various choices and how they impact the budget.

 

[Cahaba Valley Farm]

Part of the problem is the finance textbooks tend to be written from a mathematics perspective instead of a practical, real world view. The math part turns students off when they actually find the real world stuff interesting. The key, IMO, is to talk about the real world issues and then introduce the math solutions as ways to analyze various choices and how they impact the budget.

Agreed!

 

[jyoutz]

Why not a money market? Just asking.

I also put some money into a money market to have some liquidity, but it pays 4% instead of the 5% 14 month CD and the rates can change with a money market account. My CD is guaranteed to pay 5% for the term.

 

[Milo]

And here is a complaint I have had since my kids went to school.....instead of all the stupid stuff they teach kids in school, why do they not teach them from an early age about banking, investments, mortgages, etc???

My schooling never had anything like that, nor did my parents teach me anything about it.....

My SIL teaches high school and actually covers a lot of this using real world examples. He tells the students "you've moved away from home so you're on your own, your salary is $6,000 per month, illustrate where and how you plan to live." The first obstacle for some is when they learn they will take home less than $5,000, from a $6,000 salary. Then there's rent, utilities, transportation (they soon realize the new SUV they were planning on is out of the question), food and entertainment, clothing, on and on.

We did the same with our children and actually they loved learning it. We'd show them pay stubs with what my wife made and what came out. Then what costs to budget for; house payments and mortgage interest, budgeting for taxes, utilities, escrows for car and home maintenance, grocery, and more. They were most astounded by how much was withheld from pay and the amount of money we were paying in interest on our home (the rate was 14% IIRC at the time).

 

[newbury]

I must have grown up in the wrong school system.
In rural Vermont I still remember scanning the newspaper ads to come up with meals to fit a budget as school homework in about 6th grade. We had to buy basics, beef, chicken, flour etc. While others bought steak for 90 cents/lb I bought chuck roast for 50 cents per pound.
Of course by that time I was "self employed" selling greeting cards to pay for my addiction to fishing equipment, I saved coins for months to buy a Garcia Mitchel spinning reel.

 

[Cahaba Valley Farm]

I also put some money into a money market to have some liquidity, but it pays 4% instead of the 5% 14 month CD and the rates can change with a money market account. My CD is guaranteed to pay 5% for the term.

I would suggest looking at long term treasuries when the rates top out.

 

[jyoutz]

I would suggest looking at long term treasuries when the rates top out.

Thanks. I will do that.

 

[newbury]

As I've mentioned before, treasuries can be bought for no charge with some limitations via the website at Treasury direct.
Recent auction results can be found here:
Announcements, Data & Results — TreasuryDirect

For me as a newbie to it it was a slight pain to set up, but there are no brokerage fees.
Right now a lot of people are just riding the roller coaster in the shorter term notes - getting about 5.4% to 5.6% waiting for the longer bonds and notes to top out.