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Blue Chip Kids: What Every Child (and Parent) Should Know About Money, Investing, and the Stock Market

Book Description

The essential guide to being smart about money and investing

Blue Chip Kids: What Every Child (and Parent) Should Know About Money, Investing, and the Stock Market is a fun and easy-to-understand introduction to the world of money and investing for kids and parents. Frustrated by the lack of entertaining financial teaching materials for his 13-year-old son, this book is the result of a father's commitment to pass on one of life's most important skills. Written by David W. Bianchi—an investor and lawyer with an economics degree from Tufts University—this hands-on resource demystifies the basic principles about money matters and shows what it takes to spend, save, and invest wisely. Filled with simple examples and numerous illustrations, this easy-to-read book discusses money and investing in 100 bite-size topics.

For every parent who wants their children to develop the skills to invest wisely and become responsible money managers, regular savers, and to earn money while they sleep, this book is a must-have.

Table of Contents

  1. Preface
  2. A Note to The Reader
  3. Acknowledgments
  4. Chapter 1 Money, Money, Money
    1. The Journey Begins
    2. Money from around the World—It's Not All the Same
    3. The Euro: What's That All About?
    4. Exchange Rates and Currency Exchanges
    5. Different Ways to Make Money
    6. Bitcoin
  5. Chapter 2 Different Ways to Pay for Things
    1. Checking Accounts
    2. Electronic Bill Payment
    3. Electronic Banking
    4. Credit Cards
    5. Debit Cards
    6. Wire Transfers
  6. Chapter 3 The Stock Market Is Cool
    1. Stock Markets and Stock Exchanges: What Is the Difference?
    2. What Is a Stock Market?
    3. Wall Street and the Stock Market
    4. Stocks
    5. Stock Certificates
    6. Market Cap
    7. Bid/Ask/Spread
    8. The Free Market and Valuation
    9. When Can You Buy and Sell Stocks?
    10. Stock Market Indexes
    11. Initial Public Offerings (IPO)
    12. The Securities and Exchange Commission
    13. Market Correction
    14. Market Rally
  7. Chapter 4 Let's Buy and Sell Some Stocks
    1. Buy the Dips
    2. Bulls and Bears
    3. Paper Profits and Paper Losses
    4. Risk On/Risk Off
    5. Stock Charts
    6. Market Top
    7. Market Bottom
    8. Trading Range
    9. Being Long a Stock
    10. Being Short a Stock
    11. High-Frequency Trading
    12. Fully Invested
    13. Leverage
  8. Chapter 5 Stock Options: (Impress Your Friends with This One)
    1. Options and the World of Puts and Calls
    2. Options: How They Work
    3. Options Expire: They Don't Last Forever
    4. Puts
    5. More about Puts
    6. The Underwater Put Option (Say What?!)
    7. Calls
    8. More about Calls
    9. The Underwater Call Option
    10. The Naked Call Option (OMG, Did You Say Naked?!)
    11. Trading Options
  9. Chapter 6 Funds: (Giant Pools of Money)
    1. What Is a Fund?
    2. Index Funds
    3. Mutual Funds
    4. Hedge Funds
  10. Chapter 7 Bonds and Certificates of Deposit: (Sounds Boring but It's Not)
    1. Bonds
    2. Yield
    3. U.S. Treasury Notes and Bonds
    4. Basis Points
    5. Certificates of Deposit
  11. Chapter 8 Analyzing Companies: (Seriously, This Will Make You Very Smart)
    1. How to Analyze a Company to See If You Want to Buy Its Stock
    2. Price/Earnings (P/E) Ratio
    3. EBITDA
    4. Market Share
    5. Earnings Season
    6. Guidance
    7. Dividends
    8. Special Dividends
    9. Stock Buybacks
    10. Transparency
    11. Private versus Public Companies
    12. 52-Week Moving Average
  12. Chapter 9 Borrowing Money: (Don't Borrow Too Much—Ever!)
    1. Mortgages
    2. Amortization
    3. Credit Ratings and Non–Real Estate Loans
    4. Default
    5. Bankruptcy
    6. LIBOR
  13. Chapter 10 Interest Rates: (Making Money While You Sleep)
    1. Simple Interest
    2. Compound Interest
    3. Annual Percentage Rate (APR)
  14. Chapter 11 Net Worth: (What's Your Stuff Worth?)
    1. Assets
    2. Liabilities
    3. Net Worth
    4. Financial Statements
    5. The “Oracle of Omaha”
  15. Chapter 12 Taxes: (The Lower, the Better)
    1. Gross Income
    2. Net Income
    3. Taxes
    4. Audits
  16. Chapter 13 The Economy: (The Business of Business)
    1. The Federal Reserve (The Fed)
    2. Gross—As in Really Gross—Domestic Product (GDP)
    3. Budgets
    4. Budgets in Action
    5. Our National Debt
    6. Deficits and the National Debt; So What? What Do They Have to Do with Investing?
  17. Chapter 14 Venture Capital and Private Equity: (Big Bets Chasing Big Profits)
    1. Venture Capital (VC)
    2. Private Equity
  18. Chapter 15 Money Smart: (Move to the Front of the Class!)
    1. Retirement Savings
    2. Your Mission, Should You Choose to Accept It
    3. You Are Now Money Smart!
  19. Chapter 16 And So It Ends—or Maybe This Is Just the Beginning
  20. Disclaimer
  21. About the Author
  22. Index
  23. EULA