What is personal finance and why does it matter?
Personal finance involves managing your own money: how much money you earn, what your expenses are, how you spend money, how much you save and where you invest it.
What are assets and liabilities?
Learn how to differentiate between assets and liabilities in personal finance before making your first investment. By budgeting a set amount of your income each month towards investing, you can begin to generate more income and assets.
How can you set up your household budget?
A household budget is basically a list of your income and your expenses and will vary depending on a number of factors.
How you can set up your emergency fund
An emergency fund is a savings account that is used for unforeseen events, such as, medical expenses, car problems, repair or replacement costs and even unemployment.
What is a savings plan?
A savings plan is created when a person deposits a fixed amount of money from their income into a separate savings account.
What is investing and who can invest?
Investing is the act of allocating a part of your disposable income or savings to assets that you believe will generate a profit for you in the future. Here are all the basics you need to know before you start investing, simply explained and all in one place.
How to start budgeting for investing
Do you still believe that you need to be wealthy to invest? In fact, investing has become increasingly more accessible to everyone thanks to digitalisation.
What is interest?
In the context of asset generation, interest is the amount of money an investor receives for placing their money in a savings account.
How does compound interest work?
If you do not withdraw the earnings your investment has generated after a certain time, your now increased investment will keep earning compound interest. Compounding is earning interest on the simple interest of an initial investment over the long term.
What is inflation?
When the general level of prices increases in the economy, a unit of currency can effectively buy less than it did before inflation.
What is a stock?
A stock is an investment that represents a small portion of ownership in the company you invest in, this is otherwise known as a share.
What is a shareholder?
Investors can acquire shares in many of public limited companies. Traditionally, a person who holds at least one share of the stock of a company is considered a shareholder or stockholder.
What are fractional shares?
A fractional share is a smaller portion of one share. A share is split into smaller portions for investors who don’t wish to buy or cannot afford one whole stock.
What is a dividend?
A dividend is a payment made by a company to its shareholders in the form of cash or additional shares.
How do investments earn you money?
People invest money to make gains from their investment in different ways, like receiving compound interest from different assets, dividend payments from investing in shares or an increase in the value of their assets, such as real estate.
What does to diversify your portfolio mean?
A portfolio in the context of financial markets is a collection made up of different securities such as stocks, bonds, currencies, commodities or others. A portfolio is often based on certain common characteristics such as region, market, performance and other factors.
What are the biggest risks in investing?
As global developments and digitisation are changing and paving the way to making investing accessible for everyone, it is important to learn about all the risks involved in investing.
What is an index?
Indices are used to track the price performance of securities grouped in a hypothetical portfolio representing a certain market or market segment. These securities may represent major titles in the stock market, a country, a market or a segment of a stock exchange.
What is a bond?
A bond is a security that is fundamentally a contract between two parties - the issuing party (a company or government) as the debtor, borrows money from the investor and then pays it back with interest after the bond has reached maturity. Learn more about investing in bonds in this article.
What is a mutual fund?
Expert brokers manage a “mutual fund”, a portfolio of stocks, bonds and various other securities to ensure returns for investors.
What is an exchange-traded fund (ETF)?
An exchange-traded fund (ETF) is made up of different securities tracking an index. ETFs offer individual investors easy and convenient access to entering the market.
What is a derivative?
Derivatives are financial products whose prices, risks and basic term structure are derived from an underlying asset or from price or interest rate developments, indices and other factors