|A one dollar bill met a 20 dollar bill and said, “Hey, where’ve you been? I haven’t seen you around here much.”
The twenty answered, “I’ve been hanging out at the casinos, went on a cruise and did the rounds of the ship, back to the United States for awhile, went to a couple of baseball games, to the mall, that kind of stuff. How about you?”
The one dollar bill said, “You know, same old stuff, church, church, church.”
Have you ever wondered just how far your money is going?
Whether it’s in your hometown, while you are traveling or during your vacation, money goes fast.
A recent report by Business Insider explains.
A gallon of gas varies from state to state. So does a cup of coffee and other consumer goods. This variation has to do with the real purchasing power of a dollar.
How much money do you need to save each day to become a millionaire? Check out the chart from Business Insider below to “trick” yourself into building up your savings account.
“Becoming rich is nothing more than a matter of committing and sticking to a systematic savings and investment plan,” financial adviser David Bach writes in his book “Smart Couples Finish Rich.”
“You don’t need to have money to make money,” he writes. “You just need to make the right decisions — and act on them.”
To illustrate the simplicity of building wealth over time, Bach created a chart (which we re-created below) detailing how much money you need to set aside each day, month, or year in order to have $1 million saved by the time you’re 65.
The chart assumes you’re starting with zero dollars invested. It also assumes a 12% annual return.
You can start by investing in your employer’s 401(k) plan — an easy, automatic contribution — and then consider contributing money toward a Roth IRA or traditional IRA, individual retirement accounts with different contribution limits and tax structures.
While the numbers in the chart below are not exact (for simplicity, it does not take into account the impact of taxes, and 12% is a high rate of return), it illustrates that a commitment to saving — even a few dollars a day — can make a huge difference in the long run.
Next time you consider running to Starbucks for a $4 latté, think about this chart and consider redirecting that coffee cash to your savings:
Like doing taxes and managing a business, there’s a lot many of us didn’t learn in school. Fortunately, School House Shock is prepared to instruct the masses on what exactly the Federal Reserve is.
In case you missed Government class, the Federal Reserve is the central bank of the U.S. and it is credited with helping the nation maintain high employment rates and stable prices for consumers. The main tool utilized by the Federal Reserve to influence the economy is interest rates – the price everyone pays to borrow money. Learn more here.
As is mentioned in the video below, the central bank is able to assert its influence by buying and selling U.S. Treasury bonds (this is how the U.S. borrows cash to fund government operations). When the Fed buys Treasuries from individual banks, new, shiny money is created electronically to pay for these bonds. Such is how the Fed increases the supply of money in the American economy.
However, there are numerous ‘cons’ to the process. This is what the video below seeks to examine in less than three minutes. A summary, found in the description section on YouTube, reads:
“Money – whether its a tangible piece of paper or a number on a screen – is intrinsically worthless, yet it fuels the modern world. In America, the ultimate control of money rests with the bankers of the Federal Reserve System. Because of this it is detrimental that we as citizens understand how this shadowy – private – organization works and how it’s ultimate goal is to forever enslave us in a descending pit of debt that we will never crawl out of.”
In colonial times in USA, traders used deer’s skin as a mean of payment. That’s why a dollar is called a “buck”.
As with many etymologies, the exact root of this word is difficult to say with one hundred percent certainty. However, the leading theory is extremely plausible and backed up by a fair bit of documented evidence. Specifically, it is thought that a dollar is called a “buck” thanks to deer.
One of the earliest references of this was in 1748, about 44 years before the first U.S. dollar was minted, where there is a reference to the exchange rate for a cask of whiskey traded to Native Americans being “5 bucks”, referring to deerskins.
In yet another documented reference from 1748, Conrad Weiser, while traveling through present day Ohio, noted in his journal that someone had been “robbed of the value of 300 Bucks.”
At this time, a buck skin was a common medium of exchange. There is also evidence that a “buck” didn’t simply mean one deerskin, but may have meant multiple skins, depending on quality. For instance, skins from deer killed in the winter were considered superior to those killed in the summer, due to the fur being thicker.
It is thought that the highest quality skins were generally assigned a one to one value with one skin equaling one buck. In contrast, for lower quality skins, it might take several of them to be valued at a single buck. The specific value for given sets of skins was then set at trading.
In addition, when the skin was from another animal, the number of skins required to equal a buck varied based on the animal and the quality of the skins. For instance, there is one documented trade where six high quality beaver skins or twelve high quality rabbit pelts each equaled one buck.
This use of skins as a medium of exchange gradually died off over the next century as more and more Europeans moved in and built towns and cities. Once the U.S. dollar was officially introduced after the passing of the Coinage Act of 1792, it quickly became the leading item used as a medium of exchange, but the term “buck” stuck around and by the mid-nineteenth century was being used as a slang term for the dollar.
While it may be tempting to think that the “buck” in this sense is where we also get the phrase “pass the buck”, most etymologists don’t think the two are related. The leading theory on the origin of the phrase “pass the buck” is thought to come from poker, with one of the earliest known references of the idea of literally passing a buck being found in the 1887 work by J.W. Keller, titled “Draw Poker”. In it, Keller states:
The ‘buck’ is any inanimate object, usually knife or pencil, which is thrown into a jack pot and temporarily taken by the winner of the pot. Whenever the deal reaches the holder of the ‘buck,’ a new jack pot must be made.
As to why it is then called a buck, it is thought that may have arisen from the fact that buck-handled knives were once common and knives were often used as the “buck” in this sense. As for the figurative sense of passing the buck, this didn’t start popping up until the early twentieth century.