Today we explain important money terms like interest, assets, credit, and risk and give you examples of how they affect you in real life.
In this episode:
Known value of currencies [1:00]
Inflation, what it looks like and why it happens [3:30]
Interest and how it’s calculated [11:00]
Inflation and currency fluctuations: global examples [15:30]
Credit [22:00]
When credit turns into debt [26:30]
Definition of an asset [29:30]
How interest rates and risk is calculated based on different types of assets [31:00]
Liabilities and net worth [36:00]
How inflation, risk and value of assets determine interest rates [38:00]
Secure versus non-secure loans [40:00]
Factors in calculating student loan rates [42:00]
Personal risk rate versus asset risk rate [45:00]
Your credit score is really a personal risk score [51:00]
Introduction to compounding interest [54:00]