The effective rate is the interest rate you actually pay or receive, as opposed to the stated rate. For example, an 8% stated rate paid annually on a $1,000 investment is $80 per year. However, if interest is paid quarterly, you will receive $82.40 a year. So, the effective annual rate is 8.24% per year. Read the fine print, where effective rates are generally disclosed. (more…)

There seems to be an abundance of activity on the financial literacy front. Vitt et al. (2000) identify 91 programs offered by schools, Cooperative Extension, colleges (including community colleges), the military, faith-based organizations, community groups, employers, and others. The National Endowment for Financial Education lists over 150 educational resources from a wide range of agencies, organizations, and firms in its Economic Independence Clearinghouse database; many of these materials are available in multiple languages. (more…)

A number of groups (the Consumer Federation of America, the Jump$tart Coalition for Personal Financial Literacy, Americans for Consumer Education and Competition, the American Savings Education Council) have conducted personal financial literacy quizzes with different audiences. Most of these show that literacy levels are low. (more…)

In contrast to residential or independent financial services, commercial financial services focus on serving those who are in private companies, government agencies and non-profit organizations. There are many different types of commercial financial services available, and if you’re a new business owner you may feel overwhelmed by all of the options. (more…)