[kazlx]

6/6. Personally, I think it's sad that there's no real financial literacy classes in school. You can sort of find electives that would help in college, but most people would be better off, especially though high school, to learn basic money management and investment.

 

[stevew]

Three boys - two of them teenagers. You have NO idea.

Full disclosure: I drink a lot too.

ftfy.....because boys.

 

[jstuhlman]

ftfy.....because boys.

FACTS

 

[CBJ]

Our travelling back to CA makes the points totally worth it at this point. I am a huge fan of the cashback cards though. Free money is the best money.

Also, how much food do you buy?

We are a family of 4. Food is a huge part of our budget and its for sure more than 6000.

The points for flights might be worth while too if we want to fly more as the kids get older. Gotta crunch the numbers.

 

[stoney]

We are a family of 4. Food is a huge part of our budget and its for sure more than 6000.

The points for flights might be worth while too if we want to fly more as the kids get older. Gotta crunch the numbers.

That's what we did. The Costco card, assuming you shop there has a huge cash value too. If we didn't fly as much as we do, we'd be doing that for sure.

 

[N8 v2.0]

6/6

 

[stoney]

I'm assuming the people that aren't passing aren't saying anything... I would love to post this on PB and see the rampant range of stupid responses and what % are able to pass.

 

[N8 v2.0]

I'm assuming the people that aren't passing aren't saying anything... I would love to post this on PB and see the rampant range of stupid responses and what % are able to pass.

probably the same crowd that thinks they aren't paying taxes because they get a refund every year.

 

[stoney]

probably the same crowd that thinks they aren't paying taxes because they get a refund every year.

I was actually kind of mad that we got money back this year. Almost $10k back means we held back WAY too much. That's since been corrected for this year. Hopefully I end up cutting a check again.

 

[ALEXIS_DH]

6/6.

I kinda guessed the bond question.
Very US-centric question; i went by figuring out the market price would collapse once you flood it with cheaper/better perfoming instruments.

that being said,I can totally relate ... I had a very interesting financial argument with someone the other day.

she firmly believed credit cards existed to provide a way for people with lower (against an arbitrary reference)-incomes to supplement their income.
so, at the end of the month; if you were short, you just swiped the card for whatever you needed to balance your budget.
It wasnt until I asked her... and what happpens after you do this several months in a row? what happens with the debt? that she really realized the long term imposibility of this behavior.

 

[JustMtnB44]

6/6.

I kinda guessed the bond question.

Same here.

 

[kazlx]

That's what we did. The Costco card, assuming you shop there has a huge cash value too. If we didn't fly as much as we do, we'd be doing that for sure.

I've been thinking about getting an Alaska card just to start using towards Whistler every year.

 

[stoney]

I've been thinking about getting an Alaska card just to start using towards Whistler every year.

Look at the cost of a flight vs. reward less the annual fee. That allows you to see if it's worth it.

With Wifey flying a ton for work, we book business trips on SW with a SW card (mucho points), buy everything possible on the SW card, etc. Between the number of flights and points accrued, she earned A-List Preferred and buddy pass for this year (one free passenger as long as she is travelling with). Straight to the front through security (when the TSA+ doesn't register) and when we fly as a group, one free ticket. The other is most likely piad for by points, so win-win. We've probably saved $3k in flights so far this year.

 

[kazlx]

Yea, I just went to Cabo and they were doing a deal where you sign up get 31K points to start and you get annual companion passes for $99. The annual fee is $75, but you also get free checked bags for up to 6 people in your party. I think that alone would pay for it and allow me to pretty much cover a lot of costs for an annual W trip. I have an American Express right now for a backup card, but it sucks, especially internationally. I always like to have my debit card, plus two credit cards when I'm out of the country...'just in case'. It's saved my ass a few times.

 

[Serial Midget]

I failed miserably and have no idea how I'm ever going to live debt free.... oh wait, I'm old and live within my means.

The bond was a 50/50 toss up for me, I guessed wrong.

 

[stoney]

I have an American Express right now for a backup card, but it sucks, especially internationally. I always like to have my debit card, plus two credit cards when I'm out of the country...'just in case'. It's saved my ass a few times.

AmEx is sometimes hard to find store for intl, but damn is their customer service good. We've had issues with international billing from trips and they sort that shit right out. They are also really good at getting access to things that you can't as an individual.

 

[jimmydean]

I have decided that with my new job and 5% 401k match, I can afford to "invest" in plan b again, so I have that to look forward to.

Plan B: $5 on a Megabucks ticket when @ WinCo (Megabucks being only in Oregon game and WinCo is employee owned). I envision a 2.7M jackpot ($1.5M after taxes and fees) so I could quit working in about 10 years.

 

[SkaredShtles]

I have decided that with my new job and 5% 401k match, I can afford to "invest" in plan b again, so I have that to look forward to.

Plan B: $5 on a Megabucks ticket when @ WinCo (Megabucks being only in Oregon game and WinCo is employee owned). I envision a 2.7M jackpot ($1.5M after taxes and fees) so I could quit working in about 10 years.

Much like keeping the rubber-side down... math not a strong suit, eh?

 

[ALEXIS_DH]

Look at the cost of a flight vs. reward less the annual fee. That allows you to see if it's worth it.

With Wifey flying a ton for work, we book business trips on SW with a SW card (mucho points), buy everything possible on the SW card, etc. Between the number of flights and points accrued, she earned A-List Preferred and buddy pass for this year (one free passenger as long as she is travelling with). Straight to the front through security (when the TSA+ doesn't register) and when we fly as a group, one free ticket. The other is most likely piad for by points, so win-win. We've probably saved $3k in flights so far this year.

i have 2 aadvantage black cards with mastercard and visa. 1 dolar spent = 1 mile.
over the last 2 years, I´ve racked over 200,000 miles on them; thanks to sign-up bonuses- x2 bonuses on foreign purchases, x5 miles on xmas; but mostly by using it for purchases for a small side-business I have.

200k miles, is like 6 round trips Lima-Miami (normally $600 each RT).. enough for yearly family vacations to the States; or half the cost for tickets to Europe
one of the perks I like is access to the admiral rooms at airports. free breakfast and brunch in the day!, free booze at night!!... and a place to sleep with recliners for longer stopovers too.
i normally pay the balance in full every month, and talk my way out of paying the $150 annual fee. pretty convenient, even if I had to pay the annual fee.

 

[jimmydean]

Much like keeping the rubber-side down... math not a strong suit, eh?

I know, I know. The $10 a month I blow on lottery tickets every month would equate to $978B in 300 years if I would have put that money into low risk high yield rail road bonds...

 

[Toshi]

As long as you have another, real plan besides that...

 

[jimmydean]

As long as you have another, real plan besides that...

Plan A is unchanged, just "enhanced" by the new 5% match is all. That frees up the $10/month for pretending.

 

[SkaredShtles]

Plan A is unchanged, just "enhanced" by the new 5% match is all. That frees up the $10/month for pretending.

Hey - at least your realistic about it.

 

[jimmydean]

Hey - at least your realistic about it.

Again, 100% of the money I spend goes to Oregon programs (most of those I support anyway) and if magic happens and I pull legit numbers, the employee owned store gets a fat check, too. It's not a bad deal and it helps me through the day.

 

[kazlx]

Plan A is unchanged, just "enhanced" by the new 5% match is all. That frees up the $10/month for pretending.

If we pool our money that doubles our chances. Think of the possibilities!

 

[BadDNA]

5/6 - I too know nothing about bonds and didn't read the thread before taking the quiz.

 

[I Are Baboon]

I got 5/6 and missed the last one and I didn't read the thread because tl;dr.

 

[Benjamin Rogers]

3/6.
A bit disappointed, but then again I'm not good with finance.
Here's my result: http://prntscr.com/btdykn

 

[stoney]

3/6.
A bit disappointed, but then again I'm not good with finance.
Here's my result: http://prntscr.com/btdykn

I have a ton of financial education threads around. Might be worth looking at them.

 

[Benjamin Rogers]

I have a ton of financial education threads around. Might be worth looking at them.

I guess I'm just one of those people who suck at Math and Finance. But yeah, I definitely wouldn't mind checking them out.

 

[slyfink]

Kinda timely: http://www.npr.org/podcasts/510289/planet-money

The latest episode has a piece on negative interest rate govt bonds. They pay back less than what you bought them for, and yet they're proving to be popular enough, that some people are buying them for more than the original asking price.

In other words @stoney buys a bond for $100 that pays back $99, and @kazlx buys that bond off stoney for $101!

 

[Toshi]

Isn't that because big institutional investors are bound to hold a certain % of assets in govt bonds?

 

[Nick]

seriously, dig into this.
if there's anything stoney knows it's finance and investment.

and bath houses.

But mostly finance and investments

 

[stoney]

I guess I'm just one of those people who suck at Math and Finance. But yeah, I definitely wouldn't mind checking them out.

Finance at it's base level is just simple plus/minus.

Isn't that because big institutional investors are bound to hold a certain % of assets in govt bonds?

Yes and no. A lot of people are okay taking small guaranteed loss to prevent possible larger loss. You see it more often with Japanese bonds, which have been negative for a while. I don't get it, as cash provides the same thing, but hey, I'm not an expert.

 

[stoney]

I guess I'm just one of those people who suck at Math and Finance. But yeah, I definitely wouldn't mind checking them out.

At the end of the day, just learn +/- about balancing an account. That will cover most that you need to know. Then, go onto www.investopedia.com and search for equity, and bond. Learn what they are. That understanding will put you ahead of most people.

 

[4xBoy]

this all sounded like math, and math is for soshulist book larnin' commie pinkos.


5/6. I am not well versed in bonds.

Same result don't know bond.

 

[jonKranked]

Same result don't know bond.

welcome to being shunned by stoney. the pending lecture is boring.

 

[Pesqueeb]

5/6

I too, have bond shame.

Again, 100% of the money I spend goes to Oregon programs (most of those I support anyway) and if magic happens and I pull legit numbers, the employee owned store gets a fat check, too. It's not a bad deal and it helps me through the day.

 

[binary visions]

5/6, guessed on bonds (wrong).

Finances aren't that hard, I think the biggest issue, besides lack of education on the subject, is people have a hard time delaying gratification and aren't interested in thinking out the consequences.

Not that different from, say, texting and driving. It's not that people don't know the consequences. It's just easier to answer the text/swipe the card and worry later if something happens.

 

[kazlx]

5/6, guessed on bonds (wrong).

Finances aren't that hard, I think the biggest issue, besides lack of education on the subject, is people have a hard time delaying gratification and aren't interested in thinking out the consequences.

Not that different from, say, texting and driving. It's not that people don't know the consequences. It's just easier to answer the text/swipe the card and worry later if something happens.

I think a lot of people also have a problem seeing a number in their account and not wanting to buy something with it. If someone gets a check for $5k, usually you hear 'I'm gonna get a new TV', not 'If I invest this, it could be 50K in 20 years'....