Lessons Learned in Money and Banking

Economic uncertainty has brought about exaggerated criticism of the Fed. Money and the banking business deepened my understanding of the Federal Reserve and helped me challenge these criticisms. If people lose confidence in the safety of financial institutions, the standard of living in the US will decline. Frederic Mishkin said, "Banks and other financial institutions are the foundation of financial market management, financial markets can not be obtained from these people," the text "Financial Bank Economics and Financial Markets" (2010) It pointed out. In addition to those with productive investment opportunities, we will move funds. "(Page 7).

Everyone who has experienced the financial crisis will learn this lesson in a difficult way. During the housing crisis, I had several friends and relatives who were unable to withdraw money from the bank. During the Great Depression, the banking industry almost paralyzed the economy. Now, in Venezuela, people can not take out their money from the bank. They can sit and see whether they are trying to save money in their lives, as banks use money as hostages, they depreciate. It is called a partial preparation loan. You might imagine that banks can safely deposit money into a safe to safely store them so that they can be stored at any time when needed. No, they lend your money to others, earn money from the back of the loan, and you do not get anything, all that is to save that privilege "safely" for you.

Below, I learned important lessons from my experience. These are the most important courses I have learned and I would like to convey this knowledge to you and your own children, friends with children, and those struggling to maintain financial condition I think. Those are the insights I build Pennybox. The salary I take home every day is about $ 25. After that work, I saw price tags - food, clothes, travel and education - in very different ways. I think costs not only in terms of money but also in terms of time. I did not approve this relationship until I first began working and earning money to do genuine things.

Piggy bank is still the introduction to save the first money for most children. When I was a child, I bought a piggy bank for each of my children. As a parent, I know the important role I play in teaching important money courses, and it does not stay in the piggy bank. It will be more difficult as a child begins to grow older and ask questions about credit, investment and even retirement age. My children between the ages of 15 and 17 are faced with the economic prospects needed to gain long-term economic stability that is not as good as mine or my parents. It is by no means important to guide your child for future economic stability. Even if wages are raised, the growth rate has been sluggish, and many Americans are facing an uncertain future of retirement payment systems that have been counted in the golden age.