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]