9 lessons
Money Bytes
Money Bytes explains personal finance, investing and the economy in one-minute lessons, from what money is to how to grow it.
Money Bytes · EP01mWhat is money, really?
A $20 bill is just paper, so why does everyone take it? Money solves the problems of barter, and today's dollar is fiat money, backed by taxes, the law and trust instead of gold.
Money Bytes · EP02mInflation
Inflation means prices across the economy rise over time, so each dollar buys a little less. Here is what causes it, how it is measured, and why central banks aim for about 2%.
Money Bytes · EP03mInterest: renting money
Interest is rent for money. Borrowers pay it to use someone else's money, savers earn it when the bank uses theirs, and the interest rate says how big the rent is each year.
Money Bytes · EP04mSimple vs compound interest
Simple interest pays only on the money you started with. Compound interest pays interest on your interest too, so the same money at the same rate can end up more than twice as big.
Money Bytes · EP05mThe Rule of 72
Divide 72 by a yearly rate to estimate how many years it takes to double. Here is how the shortcut works for savings, credit card debt and inflation, and how close it gets.
Money Bytes · EP06mAssets vs liabilities
An asset is something you own that's worth money; a liability is money you owe. Here is how to sort what you have, why some assets pay you while debts cost you, and why a car can be both.
Money Bytes · EP07mNet worth
Net worth is everything you own minus everything you owe. Here is how to add it up, why it is often negative at first, and how it climbs.
Money Bytes · EP08mOpportunity cost
Every choice has a hidden price tag: the best thing you gave up to make it. Here is how a $5 daily coffee adds up, and what else that money could do.
Money Bytes · EP09m