The Personal Finance Geek

Fedspeak is a term used to describe the jargon and acronyms used by the Federal Reserve when it comes to things like interest rates and how much money is in circulation. It can be difficult to understand for people who don't have a lot of financial literacy, but it's important to be able to follow what the Fed is saying in order to make informed financial decisions, because what the Fed says directly impacts, for example, how expensive it is to buy a house or a car because interest rates change as a result of what they say. Here are a few things to keep in mind when trying to understand Fedspeak: The Fed uses a lot of acronyms. Some of the most common ones include: FOMC: The Federal Open Market Committee, which is the group that sets monetary policy. QE: Quantitative easing, which is a tool the Fed uses to buy assets (usually bonds ) in order to stimulate the economy. (and the corresponding selling of bonds in order to "tighten") IOER: Interest on excess reserve...

Everywhere, healthcare is expensive, but especially so in the United States, where we pay more per person per year for healthcare than almost any country of comparable economic standing. One of the keys to navigating the healthcare system is knowing about the health insurance system. Health insurance, as the name suggests, is a type of insurance. Insurance is a collectivization of poeple who pay into a pool of money every so often (usually monthly) for the right to withdraw from the pool of money in exceptional circumstances. (For health insurance, when you need a medical procedure, need to stay in the hospital, give birth to a baby, or other events; for car insurance, which works the same way, when you get into an accident.) In this case, healthy people who don't need much care pay into the pool so that sick, injured, or disabled people can do the majority of the withdrawal from the pool when they need very expensive, intensive care. How much you pay every month, for the ri...

An HSA, or Health Savings Account, is a tax-advantaged account that can be used to save for qualified medical expenses. HSAs are available to anyone with a high-deductible health plan (HDHP). The main benefit of an HSA is that contributions are tax-deductible, meaning you can deduct them from your taxable income. This can lower your tax bill and give you more money to save for upcoming medical expenses. Another benefit of an HSA is that earnings grow tax-free . This means that the money you contribute to your HSA will continue to grow, tax-free until you withdraw it. Finally, withdrawals from an HSA are tax-free as long as they are used for qualified medical expenses . This means that you can use your HSA to pay for things like doctor's visits, prescription drugs, and hospital stays, and you won't have to pay taxes on the money you withdraw. If you have a high-deductible health insurance plan, an HSA is a great way to save for medical expenses. The tax advantages can mak...

When you're investing in stocks, you're buying a piece of ownership in a company. The size of the company is one factor that can affect the price of its stock. Here's a look at the differences between small-cap, mid-cap, large-cap, and mega-cap stocks: Small-cap stocks are shares of companies with a market capitalization of less than $1 billion. These companies are typically newer and have less established track records than larger companies. Small-cap stocks can be more volatile than larger stocks, but they also have the potential for higher returns. Mid-cap stocks are shares of companies with a market capitalization of between $1 billion and $10 billion. These companies are typically more established than small-cap companies, but they're still considered to be growth companies. Mid-cap stocks can be a good option for investors who are looking for a balance of risk and potential return. Large-cap stocks are shares of companies with a market capitalization of more than ...

Teaching your kids about money is one of the most important things you can do as a parent. In today's world, it's more important than ever for kids to understand how to manage their finances wisely. Here are a few tips on how to teach your kids about money: Start early. The earlier you start teaching your kids about money, the better. Even young children can understand the concept of saving and spending. Start teaching your kids about finance early. The earlier you start teaching your kids about money, the better. Even young children can understand the concept of saving and spending. Be a good role model. Kids learn by watching the adults in their lives. If you want your kids to be good with money, set a good example by being responsible with your own finances. Talk about money openly. Don't be afraid to talk about money with your kids. Answer their questions honestly and openly. Teach them about budgeting. Help your kids understand the importance of budgeting and how...

A stock buyback is when a company buys back its own shares of stock. This can be done through open market purchases, tender offers, or privately negotiated transactions. There are several reasons why companies might do stock buybacks. Some common reasons include: To increase the value of the company's stock. When a company buys back its own shares, it reduces the number of shares outstanding. This can increase the demand for the remaining shares, which can lead to an increase in the stock price. To return capital to shareholders. When a company buys back its own shares, it is essentially returning money to shareholders. This can be done in lieu of dividends, or in addition to dividends. To improve the company's financial ratios. Some financial ratios, such as earnings per share, are calculated based on the number of shares outstanding. By reducing the number of shares outstanding, a company can improve its financial ratios. There are both pros and cons to stock buybacks. ...