The Personal Finance Geek

Big banks and credit unions are both financial institutions that offer a variety of services, such as checking and savings accounts, loans, and credit cards. However, there are some key differences between the two types of institutions. Big banks are for-profit businesses that are owned by shareholders. They are regulated by the federal government, but they are not subject to the same restrictions as credit unions. Big banks typically have a wider range of products and services than credit unions, and they offer more convenient hours and locations. However, they also tend to charge higher fees. Credit unions are non-profit financial cooperatives that are owned by their members. They are regulated by the National Credit Union Administration (NCUA), which is a federal agency. Credit unions typically have fewer products and services than big banks, but they offer lower fees and better interest rates on loans and savings accounts. Credit unions are also more likely to offer community-based...

Junk fees are hidden or excessive fees that banks, credit card companies, and other financial institutions charge their customers. These fees can add up over time and can make it difficult to manage your finances. Some common types of junk fees include: Account maintenance fees ATM fees Late payment fees Overdraft fees Foreign transaction fees The US government has taken some steps to regulate junk fees, but there is still more work to be done. In 2010, the Consumer Financial Protection Bureau (CFPB) was created to protect consumers from unfair, deceptive, and abusive financial practices. The CFPB has taken action against banks and credit card companies that have charged excessive junk fees. In 2020, the CFPB proposed a rule that would require banks to provide consumers with more information about the fees they charge. The rule would also require banks to get consumers' permission before charging them certain fees. There are a few things you can do to protect yourself from junk fee...

Currency exchange rates are the prices of one currency in terms of another. For example, let’s consider the rates between the dollar and the euro, or the euro and the dollar.  1 Euro  = 1.11 Dollars, so 1 Dollar = 0.90 Euros. Note that 1 / 0.9 is 1.11, or that 1 / 1.11 is 0.9, so the rates are symmetrical.  Currency exchange rates are important because they affect the cost of goods and services that are bought and sold internationally. For example, if the exchange rate between the US dollar and the euro goes up, then it will cost more US dollars to buy euros. This means that US goods and services will be more expensive for Europeans, and European goods and services will be cheaper for Americans. Currency exchange rates are also important for businesses that operate internationally. When a business sells goods or services in a foreign country, it needs to convert the foreign currency into its own currency in order to get paid. The exchange rate will affect how much money t...

  Investment time horizon is the length of time you plan to invest your money. It is important to consider your investment time horizon when choosing investments, as different investments are suited for different time horizons. For example, if you are investing for a short-term goal, such as buying a car in the next few years, you will want to choose investments that are relatively safe and have a low risk of losing money. On the other hand, if you are investing for a long-term goal, such as retirement, you can afford to take on more risk in order to potentially earn a higher return. Here are some general guidelines for choosing investments based on your investment time horizon: Short-term investments: For short-term investments, you will want to choose investments that are relatively safe and have a low risk of losing money. Some good options for short-term investments include savings accounts, CDs, and money market funds. Intermediate-term investments: For intermediate-term inves...

A bubble is a situation in which the price of an asset rises rapidly and far beyond its intrinsic value, usually fueled by speculation. Bubbles can occur in any market, but they are most common in financial markets, such as the stock market or the housing market. In the late 1990s and early 2000s, tech stocks were all the rage, before they crashed in 2001-02, in the “dot com bubble.” In 2007-08, it was very easy to borrow money, and so banks gave out mortgages that were much too expensive to people who could not afford the payments-- this was the cause of the “subprime mortgage crisis,” or the “housing bubble” of the time. There are a number of factors that can contribute to the formation of a bubble. One common factor is a period of economic growth or prosperity, which can lead to increased confidence and optimism among investors. This can lead to a rise in demand for assets, which can push prices up even higher. Another factor that can contribute to a bubble is easy access to credit....

Y our debt-to-income ratio (DTI) is a measure of how much debt you have compared to your income. It's calculated by dividing your total monthly debt payments by your gross monthly income. For example, if you have $500 in monthly debt payments and a gross monthly income of $2,000, your DTI would be 25%. A high DTI can make it difficult to qualify for loans and credit cards, and it can also lead to higher interest rates. That's because lenders see a high DTI as a sign that you're more likely to default on your loans. There are a few things you can do to improve your DTI: Pay down your debt. This will lower your monthly debt payments and improve your DTI. Increase your income. This will give you more money to spend on debt repayment and other expenses. Consolidate your debt. This can help you get a lower interest rate and make it easier to manage your payments. If you have a high DTI, it's important to take steps to improve it. This will help you qualify for loans and cred...