Financial Terminology: What do These Financial Terms Mean? Part 1

Have you ever heard someone talking about finances and wonder what in Heavens name they are talking about? You know what I mean. That financial wizard on TV who is showing viewers how to invest money. What is he or she saying? What does that mean? Call me dumb if you want, but I just don't get it. I have no idea what he or she is talking about.

Well, I thought that I would explain some of those confusing terms so the next time you catch one of those shows on TV you'll know what they're saying. I took a Personal Finance class in college so I've included some financial terms and their meanings that are listed in the back of the book. It's been awhile since I graduated, but I doubt that they've changed over the years.

1.) Blue-chip stock: A blue chip stock is the stock of a company who has an excellent reputation with a long term history of making money. Their earnings and cash dividends grow at the same rate as the economy. They are dominate in the industry. Their shares are held by many investors.

2.) Bond funds: Bond funds are the more conservative mutual funds. There is little risk in buying bond funds.

3.) Cash value life insurance: This life insurance policy builds up a cash value much like a savings account. This policy not only pays when the insured dies, but it builds up a cash value when the insured is alive. This savings can be used by the insured if he or she needs it but there must be a certain amount of money built up first.

4.) No load fund: This refers to mutual funds. It means that there is no charge or fee at the time of investing.

5.) Open-end investment company: This investment company will buy back previously sold stocks and is always ready to sell stocks to investors

For more financial terms click on the links below.

http://susieq42.hubpages.com/hub/Financial-Terminology-More-Financial-Terms-Part 2

http://susieq42.hubpages.com/hub/Financial-Terminology-Part-3

There is so much information available on the web about building financial wealth. My oldest son is a real estate investor and went to Millionaire Mind conferences for years, often taking my youngest son with him. He also read everything he could get his hands on about investing in real estate. II was thankful for that because my youngest son was learning a whole lot about finances when he was a teenager. And who best needs to be informed about finances than our teenagers? They are the ones who are preparing to live on their own, either in college or maybe their own apartment one day. They should be learning how to earn money, spend money and save money! Be sure to take time to teach your teens how to do these things. I know I wasn't prepared in any way when I left home. I didn't know anything about checking and savings accounts, and I certainly didn't know anything about investing!