Finance 101: What You Need to Know

Have you ever needed to create a budget, understand the stock market and how to invest, be able to read a financial statement, or understand any number of other topics related to personal finances? You are not alone. Taking control of your personal finances and understanding how to be “money wise” is a great aspiration, but many people do not know quite where to start. OpenSesame offers numerous finance courses which can help you become Fluent in Finance by understanding different aspects of finance and enable you to better manage your economic lifestyle.

Budgeting

Budgeting is probably the most important aspect of healthy financial management. But where to begin? First off, you need to understand the purpose and importance of a budget in order learn how to budget. According to Duke University, a budget takes into account all of your projected income and expenses in order to help you manage and prioritize your spending habits. Budgeting can be a tricky game, as you need to track multiple variables and account for unexpected costs. This is where OpenSesame can help! By just taking a quick budgeting course such as Smart Finances: Creating a Budget That Works for You, Budgeting Essentials: Budgeting Expenses, or any one of the numerous budgeting courses our catalog hosts () you can become a budgeting pro in no time!

Investing

Wouldn’t it be great if you could put $10 away, come back in a few years, and find that the original $10 had become $100? If you, like me, answered yes and want to know how this could be possible, keep reading! In the simplest sense, investing money is making your money work for you. So how can you do this?

According to Investopedia, investing is “The act of committing money or capital to an endeavor (a business, project, real estate, etc.) with the expectation of obtaining an additional income or profit." Going back to that original example of $10 becoming $100, when you put that original money away, you’re not just storing it under your mattress, you are investing its value into something else. As whatever you’ve invested in makes a profit, your investment also increases in value. But investing is not a sure fire way to make money; investing comes with risks and you can lose money too. Understanding the various types of investing and how to make smart investments is key to making your money work for you. Try an OpenSesame course on investing basics to make sure you understand all you need to know before investing your money!

Financial Statements

Financial statements are reports for individuals or businesses that summarize how that person or business has used their available funds. Financial statements report on expenditures, income, cash flow, and investments, along with other areas of interest. There are multiple types of financial statements, such as a balance sheets and income statements that have different purposes and uses.

Being able to read a financial statement is a necessary skill you may not have learned in school. Thankfully, OpenSesame is here to help you by offering numerous courses on financial statements. Learn the basics though a finacial statements introduction course, or go into even more detail in an advanced financial statements course. Whatever your level of proficiency with financial statements is, OpenSesame can help!

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