This module serves as an introduction to balance sheets, using a home purchase as a case study. Key areas of focus include:
Students will learn how to interpret balance sheets and their significance in personal finance.
This module introduces the concept of interest, explaining its significance in finance. Students will learn the differences between simple and compound interest, including:
By the end of this module, learners will grasp how interest affects their financial choices.
This module builds on the previous one, diving deeper into simple and compound interest. Key topics include:
By the end of this module, students will be equipped to compute interest in various scenarios.
In this module, learners are introduced to the concept of present value, which helps in understanding financial choices between receiving money now or later. Topics include:
Students will learn how to calculate present value and its significance in evaluating investment opportunities.
This module delves further into present value, expanding on choices regarding money timing. Key focus areas include:
By the end of this module, students will be adept at analyzing financial scenarios using present value.
This module continues the exploration of present value, focusing on the effects of changing discount rates. Key learning points include:
Students will learn to adjust calculations based on varying discount rates and their implications for investments.
This module combines present value concepts with discounted cash flow analysis. Students will explore:
By the end of this module, learners will be able to apply discounted cash flow analysis to various financial scenarios.
This module serves as an introduction to balance sheets, using a home purchase as a case study. Key areas of focus include:
Students will learn how to interpret balance sheets and their significance in personal finance.
This module expands on balance sheets, focusing on equity management. Key topics include:
Students will gain insights into the dynamics of equity within personal and business balance sheets.
This module covers home equity loans, providing a straightforward example of borrowing against equity. Key points include:
Students will learn how home equity can be utilized in financial planning and decision-making.
This module compares the financial implications of renting versus buying a home. It covers:
By the end of this module, students will be equipped to make informed housing decisions based on financial analysis.
This module continues the discussion on renting versus buying, incorporating appreciation and depreciation into the analysis. Key topics include:
Students will learn to factor in appreciation and depreciation when considering renting or buying.
This module provides a detailed analysis of the rent vs. buy decision. Topics include:
By the end of this module, students will be able to conduct thorough analyses to guide their housing decisions.
This module introduces the concept of buying a company's stock. Key areas covered include:
Students will gain a foundational understanding of stock ownership and its implications.
This module compares bonds and stocks, highlighting their differences. Key topics include:
Students will better understand these investment vehicles and how to incorporate them into their portfolios.
This module introduces the concept of shorting stock, explaining its mechanics. Key points include:
Students will gain insights into this advanced trading strategy and its potential impact on investments.
This module continues the exploration of short selling, diving deeper into its mechanics. Key areas covered include:
By the end of this module, students will have a comprehensive understanding of the intricacies of short selling.
This module discusses the ethical implications of short selling, addressing common concerns. Key topics include:
Students will engage in a thoughtful discussion about the virtues and vices of short selling in the financial markets.
This module provides an introduction to Chapter 7 bankruptcy liquidation. Key areas covered include:
Students will understand the basics of bankruptcy and its effects on individuals and businesses.
This module covers Chapter 11 bankruptcy, focusing on restructuring. Key points include:
Students will gain insights into the complexities of corporate bankruptcy and its effects on various parties.
This module introduces the concept of return on capital and cost of capital. Key topics include:
Students will learn to evaluate potential investments based on return and cost metrics.
This module provides an introduction to the treasury yield curve. Key areas covered include:
Students will gain insights into how the yield curve is used to make informed financial decisions.
This module introduces the concept of compound interest, emphasizing its importance in finance. Key points include:
Students will learn how compounding can significantly impact their financial growth.
This module continues the discussion on compound interest, focusing on continuous compounding. Key areas include:
Students will understand how continuous compounding differs from traditional compounding methods.
This module explores the continuous compounding of principal at an annual interest rate. Key topics include:
Students will learn to apply continuous compounding to real-world financial scenarios.
This module discusses the implications of continuous compounding for multiple years. Key points include:
Students will grasp the long-term benefits of continuous compounding in financial planning.
This module introduces the concepts of liquidity and solvency in the context of bank bailouts. Key focus areas include:
Students will learn how liquidity and solvency impact financial stability in banking.
This module examines book value through a hypothetical bank balance sheet. Key learning points include:
Students will understand the relevance of book value in assessing financial institutions.
This module discusses the relationship between market value and book value. Key topics include:
Students will learn to analyze the significance of these values in investment strategies.
This module compares mark-to-model and mark-to-market accounting approaches. Key points include:
Students will learn how different accounting methods can affect financial statements and investor perceptions.
This module discusses how banks can liquidate assets to pay off debt. Key areas covered include:
Students will gain insights into the challenges and strategies surrounding bank debt management.
This module covers the concept of equity infusion in banks, particularly during financial crises. Key topics include:
Students will learn about the role of equity infusions in maintaining financial stability within the banking sector.
This module discusses the consequences of a bank going into bankruptcy. Key focus areas include:
Students will gain insights into the effects of bank bankruptcies on various stakeholders.
This module examines systemic risk within the banking sector. Key topics include:
Students will learn to identify and analyze systemic risks in the banking system.
This module discusses Paulson's plan during financial crises, focusing on its objectives and criticisms. Key areas include:
Students will engage in critical discussions surrounding policy responses to financial crises.
This module covers the concept of moral hazard in finance, particularly during bailouts. Key points include:
Students will learn to analyze the ethical implications of financial interventions.
This module introduces credit default swaps (CDS), explaining their purpose and mechanics. Key areas include:
Students will gain insights into the role of CDS in modern finance.
This module distinguishes between investment and consumption. Key topics include:
Students will understand the importance of balancing investment and consumption in financial planning.
This module continues the discussion of investment versus consumption with additional examples. Key areas include:
Students will learn to analyze their own financial choices regarding investment and consumption.
This module discusses why certain collateralized debt obligations (CDOs) could be worth nothing. Key topics include:
Students will learn to critically assess the value of CDOs and their implications in finance.
This module presents a real-life example of a transaction involving CDOs. Key areas covered include:
Students will gain practical insights into the workings of CDO transactions in the market.
This module evaluates whether the bailout has a chance of working. Key topics include:
Students will critically assess the viability of bailout solutions in financial crises.
This module discusses a fairer solution to financial crises, focusing on alternative approaches. Key areas include:
Students will learn to evaluate and appreciate innovative financial interventions.
This module continues the discussion on innovative solutions for financial crises, focusing on the "Plutsky Plan." Key topics include:
Students will engage in a thoughtful analysis of this proposed solution to financial instability.
This module introduces the banking sector, explaining how banks generate revenue and their societal value. Key points include:
Students will learn to appreciate the essential role banks play in the economy.
This module focuses on a bank's income statement, providing insights into its financial performance. Key topics include:
Students will learn to assess a bank's financial health through its income statement.
This module introduces fractional reserve banking and its impact on the money supply. Key focus areas include:
Students will understand how fractional reserve banking influences economic activity.
This module covers personal bankruptcy, focusing on Chapters 7 and 13. Key topics include:
Students will learn about personal bankruptcy options and their impacts on financial recovery.
This module introduces the Rule of 72, a quick way to estimate investment doubling time. Key areas include:
Students will learn to use the Rule of 72 for assessing investment growth potential.
This module discusses the difference between Annual Percentage Rate (APR) and Effective APR. Key focus areas include:
Students will understand how to evaluate loan offers based on APR and Effective APR.
This module introduces bonds, explaining their purpose and characteristics. Key points include:
Students will gain foundational knowledge about bonds and their role in investment portfolios.
This module discusses the relationship between bond prices and interest rates. Key topics include:
Students will learn to navigate the bond market effectively by understanding this relationship.
This module provides an introduction to mortgage loans, covering essential aspects. Key areas include:
Students will learn to navigate the mortgage process and make informed borrowing decisions.
This module introduces traditional IRAs (Individual Retirement Accounts) and their benefits. Key topics include:
Students will understand the role of traditional IRAs in retirement planning.
This module covers Roth IRAs and their unique features. Key areas include:
Students will gain insights into the benefits of Roth IRAs for long-term savings.
This module introduces 401(k) plans and their significance for retirement savings. Key topics include:
Students will learn how to utilize 401(k) plans effectively in their retirement strategies.
This module discusses payday loans, explaining how they work. Key areas include:
Students will learn to evaluate payday loans and consider safer financial options.
This module covers the institutional roles involved in issuing and processing credit cards. Key topics include:
Students will gain insights into the functioning of credit card systems and their impact on financial transactions.
This module discusses Ponzi schemes, explaining their mechanics and implications. Key areas include:
Students will learn to identify and avoid Ponzi schemes in investment decisions.