Financial Education

Spotlight: Basic Financial Concepts

Whether it’s knowing how government policy proposals might impact your spending decisions or how interest on a loan you are considering is calculated, understanding basic financial concepts helps you make the best choices for achieving your long-term goals.

Others in this Series

Navigate to undefined

Interest: Earning vs. Paying

Knowing the difference between simple and compound interest is critical to building wealth.

clock icon next to video length value1min
Navigate to undefined

The Two Sides of Inflation

While inflation reduces the power of your dollar, it does have its benefits.

clock icon next to video length value1min
Navigate to undefined

The Difference Between Fiscal and Monetary Policy

The government uses these two “macro” tools to keep the U.S. economy on track; understand how changes in these policies can affect your decisions.

clock icon next to video length value1min
Navigate to undefined

A Measure of Economic Health

Discover why monitoring changes in countries’ gross domestic product (GDP) matters to your finances.

clock icon next to video length value1min

Dive Deeper

Learn More About Our Essentials Curriculum

This curriculum – which can be customized to your family’s unique objectives – empowers the next generation to responsibly steward family wealth. Each month we will spotlight a topic from our Essentials curriculum.

Did you know?

  • To help mitigate the economic impact of COVID-19, the Fed announced several emergency actions

    • In addition to cutting interest rates to a level close to zero in March 2020, the Fed also purchased securities and established new lending and funding programs in order to help stabilize the U.S. economy.

  • When the Fed cuts rates, it benefits borrowers, but hurts savers

    • Lower interest rates make borrowing and spending more attractive, and saving less rewarding, which helps support economic growth.

  • China has the second highest GDP in the world

    • But with the world’s largest population, it has a low per capita GDP, so it is still considered an “emerging market” country.

LOWER FEDERAL FUNDS RATES CAN ENCOURAGE ECONOMIC GROWTH IN UNCERTAIN TIMES

What You Will Learn in a Customized Session

  • How different types of interest rates work (Fed Funds Rate, Prime Rate, APR, APY)

  • How the Federal Reserve influences consumer and business lending rates

  • The impact inflation has on your purchasing power

  • Why creating a framework helps you achieve your goals even as they evolve over time

  • Why understanding the difference between compound and simple interest calculations matters

  • How to calculate the future value of an investment using present value, interest rate and time period

  • How to determine your net worth

Empower Your Family with Financial Education

Successful wealth management requires a fundamental understanding of personal finance, investing and estate planning. Let us design a custom financial education program for your family.

Let's Collaborate

This information is not intended to be and should not be treated as legal, investment, accounting or tax advice and is for informational purposes only. Readers, including professionals, should under no circumstances rely upon this information as a substitute for their own research or for obtaining specific legal, accounting or tax advice from their own counsel. All information discussed herein is current only as of the date appearing in this material and is subject to change at any time without notice.

The Northern Trust Company | Member FDIC | Equal Housing Lender equal-housing-lender-1-logo-png-transparent