Latte Money 101
Investing 101
The building blocks of investing, from ownership and lending to time, uncertainty and fees.
10 lessons · about 40 minutesIn this series
Start at the top. Take it one idea at a time.
- 01What Is Investing?Investing means putting money into assets with the goal of earning a return, while accepting that the value can change.4 min
- 02StocksA stock represents an ownership interest in a company. Its value can change with the business and with what investors are willing to pay.4 min
- 03BondsA bond is a loan from the investor to a government or company, usually with promised interest and repayment terms.4 min
- 04FundsA fund pools money from many investors and uses it to hold a collection of investments.4 min
- 05ETFsAn ETF is a fund that trades on a stock exchange. The ETF structure does not tell you what the fund owns or how risky it is.4 min
- 06DiversificationDiversification spreads investment exposure across different assets so one holding or risk is less able to dominate the entire portfolio.4 min
- 07Risk and ReturnInvestment return is the reward you hope to earn. Risk is the uncertainty around the outcome, including the possibility of losing money.4 min
- 08Time HorizonTime horizon is how long until you expect to need the money. It changes how much investment risk a goal can reasonably tolerate.4 min
- 09Investment ReturnsInvestment returns can come from interest, dividends and changes in value. Total return looks at the whole result.4 min
- 10FeesInvestment fees reduce the return that stays with you. Small annual percentages can add up over long periods.4 min