Why should I pay myself first?

July 7, 2024 No Comments

A: The concept of “paying yourself first” is one of the pillars of personal finance and considered the golden rule by many financial planners. The basic idea is simple to understand. As soon as you get paid, put money into your savings account first. Before

Why would you keep funds in a money market account and not a savings account?

July 7, 2024 No Comments

A: Most banks offer both money market accounts and savings accounts for depositors, although money market accounts are less universal. At first glance, these two accounts are remarkably similar – both are interest-paying, both have some liquidity limits and both are protected by the Federal

Will Netspend cards let you overdraw your account?

July 7, 2024 No Comments

A: Netspend lets cardholders overdraw their accounts, but only if they previously enrolled in the overdraft protection service. Otherwise, Netspend does not authorize and pay on overdrafts. Netspend cards are prepaid debit cards that allow cardholders to make purchases worldwide using the pre-funded money deposited

When buying a car, is trade in or down payment better?

July 7, 2024 No Comments

A: When buying a car, it may be better to have a down payment rather than a trade-in. A trade-in offers convenience to the car buyer, since one can walk into a dealership with a used vehicle and walk out – or rather, drive out

Where Do Companies Keep Their Cash?

July 7, 2024 No Comments

A: If you have ever looked over a company’s balance sheet, you have no doubt noticed the first account under the current asset section is cash and cash equivalents. The cash account contains, as the name suggests, all of the company’s cash, while the cash

Who sets interest rates for federal student loans?

July 7, 2024 No Comments

A: The interest rates for federal student loans from the U.S. Department of Education are set by Congress through legislation. The interest rates are closely tied to the financial markets, and are usually similar to the rate of the 10-year Treasury note plus an additional

Why are credit cards able to charge such high interest rates compared to other lenders?

July 7, 2024 No Comments

A: A true financial horror story began on Halloween in 1978. On that date, the Supreme Court began hearing Marquette National Bank vs. First of Omaha Corp. The case appeared to be a simple conflict over which state laws govern the relationship between debtor or

Why are most airplane tickets nonrefundable?

July 7, 2024 No Comments

A: Airplane tickets are generally nonrefundable, because the majority of tickets sold are discount tickets. In exchange for discounts of 60 to 80% off the cost of a full-fare ticket, airlines make tickets nonrefundable and nontransferable. They do this to have greater predictability of customer

Why are most brokerage firms owned by banks?

July 7, 2024 No Comments

A: Most brokerage firms are owned by banks because this allows the banks to act as both brokers and dealers, and they have more resources at their disposal to weather market fluctuations. When banks execute transactions for an individual client, they are considered brokers. However,

Why do you need an emergency fund?

July 7, 2024 No Comments

An emergency fund is very handy when unplanned and unexpected expenses arise. It is always advisable to have some money tucked away for a rainy day, as an emergency fund can supplement any temporarily foregone income or can be used for an infrequent/unexpected purchase. Usually,

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