It begins with Adam Adam Neumann, the groovy business guru behind the company WeWork, was known for his charismatic speeches, his t-shirt and blazer combos, and his head full of long wavy hair. Fair enough, but was there substance behind all of the flash? I never thought so. Watching him prance around on a TED Talk stage and blather on about “community consciousness” always got a few eyeball rolls out of me. I thought he was a tad silly. That doesn’t necessarily mean that I wouldn’t have fallen for his sales pitch. Lots of otherwise smart investors pumped money into his vision without fully un ..read more

Want to offer FINANCIAL LITERACY lessons to your students? Here is a dedicated curriculum based on nationally recognized standards! For too long, direct instruction for financial literacy has been overlooked in most school curricula. Why? Knowing how to budget, make purchases, and invest for the future are crucial life skills that every single person needs. WHY WOULD WE LEAVE THIS TO CHANCE? The problem is, many people feel unprepared to discuss money or explain financial concepts to their children and/or students. Without training or a professional background, many adults are just lost when i ..read more

Want to offer FINANCIAL LITERACY lessons to your students? Here is a dedicated curriculum based on nationally recognized standards! For too long, direct instruction for financial literacy has been overlooked in most school curricula. Why? Knowing how to budget, make purchases, and invest for the future are crucial life skills that every single person needs. WHY WOULD WE LEAVE THIS TO CHANCE? The problem is, many people feel unprepared to discuss money or explain financial concepts to their children and/or students. Without training or a professional background, many adults are just lost when i ..read more

The Price to Earnings ratio, or P/E ratio, is a stock valuation metric. Similar to the EPS ratio, it tries to determine if a share is fairly priced (OK to buy), under priced (definitely buy!) or over priced (may want to think twice on that). The P/E ratio equals the price of one share of stock divided by its EPS (earnings per share). Let’s start with the example of McLucky’s Hot Dog Emporium. The information below shows how to find the EPS: If we know that a share of McLucky’s costs $12, then we are set to figure out the P/E. You’ll be amazed at how simple it is: 12 / 2 = 6 That’s it! The P/E ..read more

The Earnings Per Share ratio, or EPS, is a metric you can use to determine the profitability of a stock. While it certainly has its limitations, it can help shareholders understand how a company’s profit will affect their possible earnings. Notice that I said “possible” earnings. That’s because the EPS doesn’t represent REAL MONEY that is given out to shareholders. It is simply a visualization technique to get an idea of profits. Visualize this: A company takes all of its net profits and puts them into a big pile. Then, it divides up the pile of cash proportionally to all of its shareholders ..read more

How to Value a Stock.  The next several blog posts will focus on different stock valuation methods. While it may seem a bit daunting at first, you should take comfort in the fact that you already know how to use valuations; you use them every single day, in fact! If you’ve ever exchanged your hard-earned cash for a good or a service, then you used a valuation method to make that decision. Sometimes it’s not money that you exchange but time, effort, or some other resource. Whatever the case, any time that you give up one good for another, you do a calculation in your head to determine if y ..read more

Common stock vs. preferred stock. When buying stocks, investors can sometimes choose between common shares or preferred shares. Now, even if you don’t know anything at all about the differences between preferred stock and common stock, which choice sounds more appealing to you? Do you want to spend your money on something that is preferred, or something that is common? I’m guessing you chose preferred. And why wouldn’t you? The differences are staggering. But when it comes to buying stock, it turns out that the answer isn’t so simple. You may find that it is a difficult decision. You may find ..read more

My Five Dollar Investing Trick. I write about finance, so I know all about the magic of compound interest. I am fully aware that small and steady contributions, propelled by compounding, yield fantastic results. Yet there are times when the concept still amazes me. I wanted to share with you a random peek into my personal investing life and show you how five dollars can make a difference in your savings. The Method One of the ways I invest extra money is through a micro investing app. When I first started out, I hooked it up to my bank account so my daily transactions would be “rounded up.” Th ..read more

The Price to Earnings ratio, or P/E ratio, is a stock valuation metric. Similar to the EPS ratio, it tries to determine if a share is fairly priced (OK to buy), under priced (definitely buy!) or over priced (may want to think twice on that). The P/E ratio equals the price of one share of stock divided by its EPS (earnings per share). Let’s start with the example of McLucky’s Hot Dog Emporium. The information below shows how to find the EPS: If we know that a share of McLucky’s costs $12, then we are set to figure out the P/E. You’ll be amazed at how simple it is: 12 / 2 = 6 That’s it! The P/E ..read more

The Earnings Per Share ratio, or EPS, is a metric you can use to determine the profitability of a stock. While it certainly has its limitations, it can help shareholders understand how a company’s profit will affect their possible earnings. Notice that I said “possible” earnings. That’s because the EPS doesn’t represent REAL MONEY that is given out to shareholders. It is simply a visualization technique to get an idea of profits. Visualize this: A company takes all of its net profits and puts them into a big pile. Then, it divides up the pile of cash proportionally to all of its shareholders ..read more