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Treasured Social Butterfly

Re: April is Financial Literacy Month. Test Yourself.

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Message 1 of 6

(came back to this post to fix a link)

 

This goes out to anyone looking to limit the amount of data they must give to websites such as those in the original post.

 

Generally speaking sites offering emailed quiz results or information only need a working (not fake) email address. So don't give them real data anywhere else. Make up a name. I find that "..." often works. Alternately call yourself Buffy or Brickhead or King Kong. If they ask for your birthday, do what I do: make one up. Same with zipcode. As long as what you are getting from the site does not require true data, give them wrong data, but give them a real, functioning email alias. Then, once you have gotten what you came for, delete that alias: voila! No unwanted email from data collecting/selling jerks, and they have only collected rubbish data from you. If the site requires true data, think twice about using the site at all. 

 

Also, please note: you can opt out of most direct marketing firm activity, which is to say that you can limit the amount of junk you receive from your online activity. The Direct Marketing Association (www.thedma.org) is the legitimate trade group of direct marketing companies. If you opt out at the-dma.org, it will be accepted by almost all legitimate datamining companies. Do not use the online services that claim to opt out of everything for you for a fee. For one thing, some of these outfits are actually just grabbing data, so your use of them will only bring you more nuisance ads.

 

About those aliases: My paid email service offers unlimited email aliases. My free email account allows 100 email aliases at one time. I understand from a search I conducted this morning that many-to-most of the free email services offer at least some email aliases, though perhaps not unlimited alias addresses. (Gmail apparently allows unlimited email aliases) So get to know what your emails service offers, and perhaps create a new email account somewhere just for the aliases.

 

But whatever you do, please be safe out there!

 

 

 

 

"The key to success is to keep growing in all areas of life - mental, emotional, spiritual, as well as physical." Julius Erving
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Treasured Social Butterfly

Re: April is Financial Literacy Month. Test Yourself.

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Message 2 of 6

Although I got the 6 questions correct on the short test, the question about bonds can be misleading. It says that if  interest rates go up, what happens to bond prices .. and the "correct" answer is that they go down. But that's only true for bonds at lower interest rates, that people already have. The price of the newer bonds at the higher interest rate are higher, than those at the lower interest rates.

 

I don't like that the longer test requires that you register for it, so that you probably wind up getting e-mail from them!


Registered on Online Community since 2007!
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Treasured Social Butterfly

Re: April is Financial Literacy Month. Test Yourself.

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Message 3 of 6

@retiredtraveler I agree with you that we need to be teaching financial literacy in school (at home would be better, imho). 

 

I had to teach these things to myself, as I bet did most of our generation.

 

 

"The key to success is to keep growing in all areas of life - mental, emotional, spiritual, as well as physical." Julius Erving
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Trusted Social Butterfly

Re: April is Financial Literacy Month. Test Yourself.

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"...Is anybody surprised with the author's first point, that savings trumps investment? Surely no one doubts that overconfidence is our worst enemy....".

No. What disturbs me is that people need more that 10 minutes to do the longer test and don't get a perfect score. Both of these tests should be common knowledge for everyone by the time you hit 30. It's beyond financial literacy --- the interest-related questions is middle school arithmetic.


Just think. The world was built by the lowest bidder.
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Re: April is Financial Literacy Month. Test Yourself.

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Is anybody surprised with the author's first point, that savings trumps investment? Surely no one doubts that overconfidence is our worst enemy.

"The key to success is to keep growing in all areas of life - mental, emotional, spiritual, as well as physical." Julius Erving
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April is Financial Literacy Month. Test Yourself.

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Message 6 of 6

5 Things You Need to Know to Reach Your Financial Goals

 

In case you forgot to mark your calendar, April is Financial Literacy Month, that time of year when you're supposed to assess how much (or how little) you know about money and finances. If you want to gauge your financial acumen, there are all sorts of tests out there to help you do so, ranging from this six-question Financial Literacy quiz from FINRA to the National Financial Education Council's 30-question National Financial Capability Test.

 

 

Sure, having a grasp of how compound interest and inflation work and knowing how lenders calculate loan payments and make credit decisions can help you make sounder choices with your money. But I'd argue that understanding these five big-picture principles is even more crucial to reaching financial goals like having enough money for retirement.


1. Saving is a surer way to wealth than investing. Given all the attention the financial press devotes to tracking the stock market's ups and downs, you can easily come away with the impression that savvy investing is the single most important factor in building financial security and wealth. It's not. Investing is important, but all the investing skill in the world doesn't amount to much unless you regularly set aside savings that you can invest.


That said, it's certainly true that earning a higher rate of return on your savings will lead to a larger account balance down the road. But it's also the case that the higher the returns you shoot for, the more volatile your portfolio will be. And as Vanguard senior investment strategist Don Bennyhof explained in this blog post about the interplay between saving and investing last year, higher volatility can sometimes leave you with less wealth than if you'd taken a more moderate approach.

 

2. Higher returns always involve higher risks. When the financial markets aren't delivering the gains we'd like, there's a natural temptation to start hunting for investments that can do better. And, no surprise, there's always a supply of advisers and investment salespeople more than willing to cater to that demand, often by recommending investments that purport to ofter loftier returns without incurring extra risk. But this sort of more-gain-without-the-pain nirvana is a fantasy.


If you doubt that, just think back to 2007 when investors yearning for higher yields than what money-market funds and savings accounts were offering poured money into supposedly low-risk alternatives like bank-loan funds and ultra-short-term bond funds. Then the financial crisis hit, leaving some investors with losses of nearly 10% in the case of ultra-short-term bond funds and upwards of 30% in bank-loan funds. It turned out that many of those seemingly safe funds held riskier debt that dropped sharply in price as investors rushed into safer holdings.

 

Read the entire article here: http://time.com/money/4722984/5-things-to-know-reach-financial-goals/

"The key to success is to keep growing in all areas of life - mental, emotional, spiritual, as well as physical." Julius Erving
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