What Is Personal Finance Lab?
Personal Finance Lab is a web-based stock market simulation platform for high school students. Teachers set parameters, and students join the simulation to learn about how stock trading works. Real-time equity research and video tutorials assist students in managing their portfolios.
Also, the mission of the Finance Lab is to support advanced applied research in financial markets and equip finance managers with the mathematical and conceptual theories and best practices in financial markets that go into the creation and management of innovative financial products.
What do personal finance means?
Personal finance is a term that covers managing your money as well as saving and investing. It encompasses budgeting, banking, insurance, mortgages, investments, retirement planning, and tax and estate planning.
Example of personal finance:
Paying bills, rent, mortgage, paying for a round of drinks with friends, shopping, filling our cars, buying presents, and making donations to charity.
What does a stock represent personal finance lab?
Stocks are shares in ownership of a company. Stocks represent a claim on the company’s assets and earnings. As you increase your holdings of stock, your ownership stake in the company increases.
Why do we need personal finance?
Personal finance can help us increase our cash flow. Keeping a track of our expenditures and spending patterns enables us to increase our cash flow. Tax planning, spending prudently, and careful budgeting ensure that we do not lose our hard-earned money on frivolous expenses.
What are the 5 areas of personal finance?
- Savings: You need to keep money aside as savings to cover any sudden financial need.
- Investing: Investing is important to grow money so that you can achieve what you aspire.
- Financial protection: Now, financial protection through insurance ensures you and your family are able to sail through during the hard times.
- Tax planning: With proper tax planning, i.e. making adequate expenditure/investment, you can bring down your taxable income, eventually saving a lot of money every year.
- Retirement planning: Finally, retirement planning is crucial to ensure that you have a big bank balance meant solely for your needs during the twilight years.