Demystifying Money: Everything You Every Needed To Know About Basic Finance Skills

2018-10-02T10:35:25+00:00

In this digital age, it can seem like we are all meant to be experienced investors, on a no debt mission, and have our money situations entirely under control. However, what is often lacking is an education on the basic financial skills that we need to survive. Luckily, you can find just that below, so read on for the demystification of your money.

Opening a bank account

Do you know how to open a bank account, because it sure has changed over the last 10-20 years? Back in the old days, it used to be about going into a branch with your physical documents to prove who you were and where you lived. However, now it’s possible to open some accounts with nothing more than a single click online (where you already hold an account with the same financial institution).

You can also open your main bank account online, now which is so much more convenient. However, do be aware that different banks and building societies will require different types of confirmation of your details, so check their websites and be sure to have these before you begin the process.

Using a payment service online

Many people eschew using their credit and bank card online because of the safety issues involved. Luckily, there are some safer and more convenient ways to pay for your purchase including online payment services like Apple Pay and PayPal.

These work by linking your bank account to your payment account and then draw the funds through when you make a purchase. Something that means the vendor never has direct access to your bank details and so keeps your transaction secure.

Other payment options

There are other alternative payment options to consider as well, including some of the more old-school choices like checks and postal orders. Of course, if you are a member of the digital generation, you may never have had to deal with these ways of paying, and it can become problematic if a service or item needs to be bought in this way.

Happily, you can find a guide like this instruction to write a check to help you with this. Something that can be particularly advantageous if you have to make more traditional payment for items such as a passport or visa because that is what the government requests.

Interest and how it works

The word interest gets bandied about a lot when it comes to money, but are you entirely sure that you know what it means? Well, just in case you are feeling a bit iffy on this, just remember that the interest is either the percentage you will gain on your money if you are saving, or the percentage you will be charged on the debt remaining; if you are borrowing.

Of course, this is why financial advisors tell you to pay off your debts before you begin saving because the interest you owe on the former is nearly always a larger figure that the interest you can make on the latter. Therefore it’s just basic financial skill to pay these off first.

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