Hi everyone. Please excuse my horrendous artistic skills (see Kevin & neighbors)... If you found value in this video, please consider dropping a like and sharing it on social media. It would make my day. Thank you for supporting the channel! - Nate
Man you are awesome. I liked what you said about investing on the U.S goverment. I did not know you could do that but here's my question.. How can i do it?
I love how banks take the money in your accounts and invest it to make money while they pay zero or little to no interest. Changed my view on the financial world when I found this out.
Hmm. At first I was kinda iffy about this channel since Nate seemed a bit lacking in confidence. But now I am Liking this channel for the same reason I like Graham’s channel. They’re both so real and honest and not pretentious. Graham is frugal and happy and records from his house that he house hacks. And Nate here talks to us like he’s actually talking to us face to face as we’re hanging out or something. Idk, just seems like a very authentic and down to earth personality. Love it, man!
It probably was not a lack of confidence. It probably had more to do with being new to UA-cam. Starting anything new is a process. It takes a little pick of time to find the place of comfort for you.
The schooling system is indeed a problem, here in Ghana too. More financial education is needed to empower students for the future. Great video as always Nate! 🚀💯💫
Fractional reserve banking is WAY worse than you described it. A major bank can take your $1000 and can legally lend out $10,000 plus interest to another person. It’s scary that it’s legal.
Agreed! My husband borrowed 20k 0 interest for one year and paid back within that time accumulating in assets of over 100k. Gotta know how to be smart and play them at their own game ;)
You are one of the few people on YT that is trying to make the general population financially literate. You are providing a essential information with a straight and understandable way, for free. You are actually providing social service, even though I know most of these things you mention, I did after searching by myself, not by simply stumbling on a short well made video.
They did for my school but they dont have the teachers teach it, just computers and a boring envienvirome. They dont do anything to get the students more involved nor interested, they give a topic, make students read it, take a quiz on it, repeat
Your parents are really responsible to teach you about money. However they are just as irresponsible as the schools and no one is educated. The real estate crash can happen again because there was no education on what and why and how to the public to avoid it again. The wealthy want to take advantage as much as possible and will keep it up until the country is broke
@@b4804514 Yeah but u cant expect parents that were never taught themselves to teach their kids how to use money, its just one big chain reaction of ignorant people. Its best if the government takes charge and teaches the kid this so they can more efficiently stop this problem.
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless" -Thomas Jefferson
Banks are like vampires sucking the value out of your hard earned money, keeping all of your money in the bank is not the way to go, rather it should be invested.
This is simply not taught at school as far as my experience goes. I'm working hard to clear my high interest debt asap and start investing. If I had this quality of advice back then I could have potentially avoided many financial mistakes and have been ahead of the curve by now. It's never too late to get on the path to financial freedom. Thanks for the informative video as always!
is it possible for you to move your debt to another bank with a lower interest rate? I did that last year and I worked out my interest payments went down by around 5 grand over the term of the loan.
I thought these things were automatically taught in American schools since they are so important. I live in Finland and I'm on grade 9 and we were taught these on social studies.It's sad how many people in yhe US has financial issues that could be solved just by basic knowledge from school. Too bad American educatiol system doesn't focus on teaching about finance. And btw great video as always!👍
I worked at a bank for a year and it just baffled me the number of people that see it as the only place to park their money. There’s so many other options that will grow their money instead of locking it in. 🔥🔥 vid as always man
MR. Madulo if someone’s sole purpose for using a savings account at a bank is to keep it somewhere so it isnt stolen or destroyed, they would do well to consider opening an IRA or just buy CD’s/Bonds if they aren’t risk takers. Your money can’t work for you if you park it in a savings account at 0.01% interest 💰💰
Take deposits, lend out everything except reserves. Take more deposits and lend out everything except reserves. It's insane how far a $100 deposit gets stretched out! Thats why Money & Banking was always the most interesting class in college for me
say where do millionaires keep their money? how do rich people guarantee the safety of their money, given that the FDIC only insures up to $250K of an individual's deposits at a bank?? can you please make a vid about this topic, btw great vid :)
I'm from Venezuela, where current inflation rate is 100,000 PERCENT. What you said with piles of money actually happened in my country. There was a time it was better value to use bills as napkins than buying napkins. What Nate's saying is real shit, and it's happening right now. Thank you!
Today was my last day of my high school freshman year, I am so shocked I never learned about what he explained in class. Just what an equation is about.
Maybe if more people understood that financial institutions: like banks & credit card companies, actually rely on consumer ignorance, they’d be more willing to fight for financial education in schools. Unfortunately the way things are, some of us are still dealing with people stuck in:”That sounds way too complicated for me.”🙄
Awesome topic Nate. Very sophisticated. Fractional reserve banking and fiat currency are a scam. I’m teaching my kids to start their own businesses at age 11 and 8 so they have CASH when they’re older.
FRB can cause the money supply on your deposit to increase up to 900% with a 10% lending reserve. It doesn't mean one bank can lend out 10 times your deposit as many videos claim.
Fun fact: the worst inflation was in Hungary in 1945 with 4.19*10^6 % /month. It means that the prices were doubled every 15 hour. In 1946 the “pengő” was swiched to “forint”(HUF). That time 1 forint worth 4*10^29 pengő
@@NateOBrien Ah Dang not sure if it was elective or not - I graduated in 04, but I know during econ class I had read Rich Dad Poor Dad - it had came out ~2000 I think, so we read it. Our teacher handed us a stock sheet of popular stocks and started with $10k, we had to choose stocks, I don't remember much else. 10k was a lot back then in highschool, now 10k is an normal emergency fund lol.
So, in your example, is the bank giving out a fraction of the same $1000 to each of those people? If so, they are making the interest from each person as well?
My bank keeps me poor by taking 20 dlls or so per month if I don't have a certain amount or if I don't get at least a two hundred something deposit per month. My work requires direct deposit but then for the summer it is really frustrating.
Can you imagine banks being so corrupt that when you get half way through a high interest high payment loan you start to have misfortune forcing you to have the asset repossessed so they can keep what you paid into it and have the asset in full. What if they caused it through private, illegal, or even professional avenues? This needs to be investigated and ppl need to be aware of the possibility.
There’s a math class in my school that’s basically a mixture of personal finance, taxes, budgeting, and a bunch of other real life stuff. HOWEVER it does not satisfy the regents scholars so if you get a credit from that math class it’s not going to count towards university scholarship eligibility Edit: grammar
People need to understand that banks can serve as a financial tool and conduct themselves as a business. It's not a non-profit or NGO. Totally agreed with the school system failing miserably at prepping young minds with personal finance. I'd argue that is more of the reason that keeps people poor rather than banks. Also, not quite following your Kevin and neighbor analogy. If Kevin pulls a car loan or mortgage, he never touches the cash. It goes straight to the seller of said car or home. The loan will never touch his account, unless it's a personal loan or HELOC. And in that case if you ever pull out a loan to just put into your savings/checking account you probably have much larger financial issues.
My mum taught me that the reason you get interest is the bank paying you for lending your money to others. So your getting 2% and the bank is making 18% profit on a 20% credit card for example. Solution? Become a loan shark haha we did do shares as part of a math assignment, but that was about it. And it obvs didnt include the fee's you would pay. But I wish they had taught us more. They did try to teach us about resumes and how to grocery shop (wish i'd paid more attention to that!) but nothing about interest or other forms of investment.
To prevent someone from having to watch this video essentially inflation makes your money worth less. Not the banks fault. By putting your money in a bank you take no more losses then storing it elsewhere and in fact by storing elsewhere you miss out on interest which would help defend against inflation
The fractional reserve system is kind of messed up. 🤦♂️ It does impact the value of our dollars more significantly that we think. The CPI is how inflation is measured, but the QUALITY of these goods isn't something that is quantified. 🍕Low nutrition food doesn't increase in price as quickly as healthy food. 🥑 Same thing with a lot of other stuff like electronics - they're getting relatively cheaper. And again with wage growth and job availability. It's all relative. 👉TLDR; Basically, what I'm getting at is that inflation is much higher than we think due to the quality of goods and people's earning potential being lower.📈
You bring up a very interesting point. Economics is such an interesting field of study. The economy is a beast that we will never be able to fully understand or predict
I was so lost when you try to explain the connection of putting $1000 into the bank and the inflation rate... like I was expecting a cause-effect explanation, but no... lol
He was missing the central bank (FED) and Treasury Department components. Inflation is caused by the Treasury printing more bank notes than what is backed in gold. The United States has been off the gold standard and officially on a fiat system since 1971 but technically starting in 1933. The central bank (FED) then issues these notes to commercial banks throughout the country at what's called a prime rate. The prime rate is then adjusted up and down in order to control the rate of inflation.
I agree that banking charges are very costly and by keeping money in bank account will lead to losing money value due to inflation. But I disagree with your view that banks are responsible for inflation. Bank's business is to lend the depositors money for loans after making a provision for liquidity. This is commonly known as statutory liquidity ratio which is fixed by central Bank. The effect you explained is money multiplier effect. Banks are a guardians of financial structure of a country and that is why even after a decade bitcoins can't replace bills. The interest rate provided by banks is risk free rate as even if deposit collapses, insurance kicks in. Banks do profit from our money but they are not responsible for keeping us poor.
I have a saving account with pnc bank , got it 4 months ago and it was 2.35% , but now they lowered to 2.15% , how common/ why do they lower the interest rates?
Banks are a middleman, great for liquidity if that's what you need. They're useful to funnel money into as a preliminary step to where you want to direct and partition the funds. I disagree with your title. Banks don't keep you poor, most just have an unclear concept of the time value of money, inflation, and how to outpace inflation by asset and portfolio diversification.
It should be pretty obvious that banks make their money by lending your to others at extortionate rates. A lot of people default on their loans so there's is some inherent risk to the banks lending other peoples money
Hi everyone. Please excuse my horrendous artistic skills (see Kevin & neighbors)... If you found value in this video, please consider dropping a like and sharing it on social media. It would make my day. Thank you for supporting the channel!
- Nate
I would like to open up a bank account I live in Conyers Georgia can you tell me the best bank to bank with
I have another question if I was to save $100 a week in a bank how much percent should I ask 4 in interest
@Elliot Rodger not familiar with Ally my friend can please explain
Man you are awesome. I liked what you said about investing on the U.S goverment. I did not know you could do that but here's my question.. How can i do it?
Pnu504 HORACE AKA TIMEKEEPER Charles schwab investor checking account
It's amazing the amount of financial education people can get on here for free 😀👍
A degree from UA-cam University ha
Seriously so valuable
Chris Invests - Personal Finance Videos this is why I love UA-cam.
There's a reason it isn't taught.
Sad but true
Bruh why u every where
You and Graham Stephan are the rockstars of the finance channels on UA-cam. Thanks for all of your efforts and dedication.
I concur 💪💪👌👌
Amen
Andrei jikh as well
I have money tree plants called Nate and Andrei haha
Don’t forget tommybryson😭
I love how banks take the money in your accounts and invest it to make money while they pay zero or little to no interest. Changed my view on the financial world when I found this out.
It definitely helps to understand!
I am a lawyer. Spent many, many years in school. This is the TRUTH.
Thank you Kevin. It’s so sad that the schooling system rarely discusses personal finance!
Nate O'Brien good thing we have channels like these to fill in the gaps 👍. Really enjoy your content.
“Spent many years in school” nice, same
You‘re a Bar keeper
@@NateOBrien No that would just increase the number of financially educated people which makes it harder for us
Borrower is slave to the lender. If you’re always the one asking for money then you’ll never be the one who has it 🙌
“Knowledge” - tai lopez
Not if you borrow money to buy stuff that makes you more money.... then you’re essentially making money for free
@@user-oy9zy4ds9m dude i like your response, people should know that borrowing money to buy assets is the best idea ever! Saving is for losers😂
@@NateOBrien Haha @CodyKo😂 Knowledge!
Well said Nick
Hmm. At first I was kinda iffy about this channel since Nate seemed a bit lacking in confidence. But now I am
Liking this channel for the same reason I like Graham’s channel. They’re both so real and honest and not pretentious. Graham is frugal and happy and records from his house that he house hacks. And Nate here talks to us like he’s actually talking to us face to face as we’re hanging out or something.
Idk, just seems like a very authentic and down to earth personality.
Love it, man!
Thank you Toni, I am not a natural speaker but I like to think that I have been improving over time. The content on this channel will always be free
It probably was not a lack of confidence. It probably had more to do with being new to UA-cam. Starting anything new is a process. It takes a little pick of time to find the place of comfort for you.
He’s only 21 c’mon dude. He’s super bright and wise for his age :)
The schooling system is indeed a problem, here in Ghana too. More financial education is needed to empower students for the future. Great video as always Nate! 🚀💯💫
They really need to teach personal finance in schools
That’s why only 1% of the population is rich.
Nothing is stopping Ghana from including financial education.
Fractional reserve banking is WAY worse than you described it. A major bank can take your $1000 and can legally lend out $10,000 plus interest to another person. It’s scary that it’s legal.
Too big to fail. Until they do.
Correct!!!!
How do they even do that
Dan Angeles that's why we bailed out the bank with 4 trillion dollars. Yet pwople thinks the freedom dividend of $1000 a month is bad for people.
That is completely wrong. How would a bank lend out $10,000 if they only have $1,000?
"It's not like the harry potter scene going down to the caves and finding a little pile of gold or what ever the hell that was".
😂🤣😂🤣
It was the first thing that came to mind. I don't script these videos
Nate always has great jokes
Banks can make you rich or poor - depending on how you use them to your advantage ;)
amen brotha
@@VimiksMC Thanks brotha haha
My Nontraditional Life leveraging debt... Study it my friend 🙏🏽
Agreed! My husband borrowed 20k 0 interest for one year and paid back within that time accumulating in assets of over 100k. Gotta know how to be smart and play them at their own game ;)
I’m sure he paid a 1-time fee
You are one of the few people on YT that is trying to make the general population financially literate. You are providing a essential information with a straight and understandable way, for free. You are actually providing social service, even though I know most of these things you mention, I did after searching by myself, not by simply stumbling on a short well made video.
Thank you so much
This needs to be a part of school curriculum.
It really does...
They did for my school but they dont have the teachers teach it, just computers and a boring envienvirome. They dont do anything to get the students more involved nor interested, they give a topic, make students read it, take a quiz on it, repeat
Indeed. People grow up being taught how to spend money, instead of investment.
Your parents are really responsible to teach you about money. However they are just as irresponsible as the schools and no one is educated. The real estate crash can happen again because there was no education on what and why and how to the public to avoid it again. The wealthy want to take advantage as much as possible and will keep it up until the country is broke
@@b4804514 Yeah but u cant expect parents that were never taught themselves to teach their kids how to use money, its just one big chain reaction of ignorant people. Its best if the government takes charge and teaches the kid this so they can more efficiently stop this problem.
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless" -Thomas Jefferson
Stumbling across your channel was one of the best things that’s happened. My bank account and peace of mind, thank you.
Banks are like vampires sucking the value out of your hard earned money, keeping all of your money in the bank is not the way to go, rather it should be invested.
Exactly. They are in the business of making money... off of you
Do you or Nate have any recommendations for beginner's investing books?
@@nicebars Intelligent Investor by Benjamin Graham
This is simply not taught at school as far as my experience goes. I'm working hard to clear my high interest debt asap and start investing. If I had this quality of advice back then I could have potentially avoided many financial mistakes and have been ahead of the curve by now. It's never too late to get on the path to financial freedom. Thanks for the informative video as always!
It's never too late! You are correct
is it possible for you to move your debt to another bank with a lower interest rate? I did that last year and I worked out my interest payments went down by around 5 grand over the term of the loan.
I thought these things were automatically taught in American schools since they are so important. I live in Finland and I'm on grade 9 and we were taught these on social studies.It's sad how many people in yhe US has financial issues that could be solved just by basic knowledge from school. Too bad American educatiol system doesn't focus on teaching about finance.
And btw great video as always!👍
loans with high interest nah. Assets yes.
I don't think the banks (and other powerful parties) would be very happy if more people were better with their money.
Oh, man! I'm from Zimbabwe and, not that it matters, but it's still happening right now. Learning a lot, Nate. Keep going.
What he is talking about where you are from?
I worked at a bank for a year and it just baffled me the number of people that see it as the only place to park their money. There’s so many other options that will grow their money instead of locking it in.
🔥🔥 vid as always man
such as??
MR. Madulo if someone’s sole purpose for using a savings account at a bank is to keep it somewhere so it isnt stolen or destroyed, they would do well to consider opening an IRA or just buy CD’s/Bonds if they aren’t risk takers. Your money can’t work for you if you park it in a savings account at 0.01% interest 💰💰
MR. Madulo online banking accounts (preferably ally bank) or any high yield online savings account, real estate
@@remmiellis I mean, nowadays laws force you to have your money in a bank, isn´t it??
MR. Madulo you are not legally obligated to keep your money in a bank no
I love how informative your videos are. Keep going!
THANKS!Always wanted to get this more clear love your channel!
Don't be just another brick in the wall!
This is why I adore this channel👌
Yes! Thank you for supporting the channel!!!
Take deposits, lend out everything except reserves. Take more deposits and lend out everything except reserves. It's insane how far a $100 deposit gets stretched out! Thats why Money & Banking was always the most interesting class in college for me
School doesn't teach this but University does
I wish I took that class in college
@@NateOBrien Will never forget my professor. Insanely smart woman
say where do millionaires keep their money? how do rich people guarantee the safety of their money, given that the FDIC only insures up to $250K of an individual's deposits at a bank?? can you please make a vid about this topic, btw great vid :)
They just split up their money between different accounts, unavoidable to have no money uninsured if you’re too rich
Watch the episode of explained "millionaires" on Netflix
I don’t have have money in the bank it’s all in my Robinhood account and other investment. Love your content
While Nate Is Keeping You Rich
😮😮😮
@@NateOBrien I love how modest you can be my guy
Nate your content is already good. Stop asking people to like your videos. TY.
Banks know how to leverage your money, while most people don’t! Let’s be the banks! 💵🏦
Banks know where the cash is 🏦
Get rich using other peoples money!
Love your videos Nate! Thank you for using your talents to educate us on personal finances
I'm from Venezuela, where current inflation rate is 100,000 PERCENT. What you said with piles of money actually happened in my country. There was a time it was better value to use bills as napkins than buying napkins. What Nate's saying is real shit, and it's happening right now. Thank you!
Today was my last day of my high school freshman year, I am so shocked I never learned about what he explained in class. Just what an equation is about.
y=mx + b woo
Very interesting point of view!
This added value to my money mindset 💪🔥
Thank you!
Might just have to share this with my economics teacher 😶
🤭
Those drawings are a work of art!
Maybe if more people understood that financial institutions: like banks & credit card companies, actually rely on consumer ignorance, they’d be more willing to fight for financial education in schools. Unfortunately the way things are, some of us are still dealing with people stuck in:”That sounds way too complicated for me.”🙄
I know, it's sad
Lol ,
Informative video Nate! Keep up the good work:)
YES!!! Thank you for telling the truth!!!
Nate, good job on the channel! Thank you
Curious, why would anyone get a loan to then put it into their checking account?
it dont matter. even if they buy a car with the money, the car seller will put the money in a bank..... eventually the money goes back into a bank
Awesome topic Nate. Very sophisticated. Fractional reserve banking and fiat currency are a scam.
I’m teaching my kids to start their own businesses at age 11 and 8 so they have CASH when they’re older.
Wow! I cannot imagine how successful they will be! I wish someone did that for me when I was younger!
FRB can cause the money supply on your deposit to increase up to 900% with a 10% lending reserve. It doesn't mean one bank can lend out 10 times your deposit as many videos claim.
Fun fact: the worst inflation was in Hungary in 1945 with 4.19*10^6 % /month. It means that the prices were doubled every 15 hour. In 1946 the “pengő” was swiched to “forint”(HUF). That time 1 forint worth 4*10^29 pengő
Your channel is so helpful. You gave me alot tips and tricks for my own youtube channel.
Thank you! Glad you enjoy the videos
Great video man, keep up the great work. Your channels really taking off
Thank you Noah!
It's funny that a presidential candidate name Andrew Yang actually talked about some of the points you mentioned
Nice Video - Good Content, I had economics in highschool, they taught some stocks/savings - but not a "why to invest" etc.
My high school didn't even offer economics
@@NateOBrien Ah Dang not sure if it was elective or not - I graduated in 04, but I know during econ class I had read Rich Dad Poor Dad - it had came out ~2000 I think, so we read it. Our teacher handed us a stock sheet of popular stocks and started with $10k, we had to choose stocks, I don't remember much else. 10k was a lot back then in highschool, now 10k is an normal emergency fund lol.
So, in your example, is the bank giving out a fraction of the same $1000 to each of those people?
If so, they are making the interest from each person as well?
Thank you! You are so real and so smart!!
Thank you Roxanne, hope you found the video useful!
Lucky Kevin, lol. Real estate is usually a winning route, never had any regrets with that path. Great info, thanks for sharing.
@BFS Bev ikr!! 😂👏
Ohhh yeah boiiii
My bank keeps me poor by taking 20 dlls or so per month if I don't have a certain amount or if I don't get at least a two hundred something deposit per month. My work requires direct deposit but then for the summer it is really frustrating.
This came at the perfect time. I was just going to switch banks this week.
Makes me happy to hear it!
Some traditional banks offer profits rates instead of using interest rates. These types of banks offer a higher return.
You’re going to go far in life Nate. I wish I learned about money in my early 20s. I started learning at 25, I’m 32 now.
Thank you for those very kind words. Even at 32 you are much further than 90% of your peers
Keep it up man your a good motivator for me. I am thankful for your videos, and for you sharing your knowledge.
What about tangible precious metals, aren't they protection against inflation etc?
Nate, great video. Really helped me out.
So happy to hear!
You mean the federal reserve, O sorry yea the banks... (gets shot)
Can you imagine banks being so corrupt that when you get half way through a high interest high payment loan you start to have misfortune forcing you to have the asset repossessed so they can keep what you paid into it and have the asset in full. What if they caused it through private, illegal, or even professional avenues? This needs to be investigated and ppl need to be aware of the possibility.
There’s a math class in my school that’s basically a mixture of personal finance, taxes, budgeting, and a bunch of other real life stuff.
HOWEVER it does not satisfy the regents scholars so if you get a credit from that math class it’s not going to count towards university scholarship eligibility
Edit: grammar
People need to understand that banks can serve as a financial tool and conduct themselves as a business. It's not a non-profit or NGO. Totally agreed with the school system failing miserably at prepping young minds with personal finance. I'd argue that is more of the reason that keeps people poor rather than banks. Also, not quite following your Kevin and neighbor analogy. If Kevin pulls a car loan or mortgage, he never touches the cash. It goes straight to the seller of said car or home. The loan will never touch his account, unless it's a personal loan or HELOC. And in that case if you ever pull out a loan to just put into your savings/checking account you probably have much larger financial issues.
Then where should I put my money ?
As always, an amazing informative video, thank you very much man!
Thank you Miguel!
I always like the vide before even watching!
My mum taught me that the reason you get interest is the bank paying you for lending your money to others. So your getting 2% and the bank is making 18% profit on a 20% credit card for example. Solution? Become a loan shark haha
we did do shares as part of a math assignment, but that was about it. And it obvs didnt include the fee's you would pay. But I wish they had taught us more. They did try to teach us about resumes and how to grocery shop (wish i'd paid more attention to that!) but nothing about interest or other forms of investment.
This is straight money! Why isn’t this kind of stuff taught more in school
I really wish it was
Banks don’t keep you poor, people keep themselves poor💯
Awesome video, thanks!!
To prevent someone from having to watch this video essentially inflation makes your money worth less. Not the banks fault. By putting your money in a bank you take no more losses then storing it elsewhere and in fact by storing elsewhere you miss out on interest which would help defend against inflation
Owen Trout Inflation is the banks fault because the banks are the ones that create the currency
ok, I got your point. But, where we should keep it safe and we are not at loss either.
Your a smart person! You have your facts on point!!
6:57 it might still be
Mike Maloney Gold&Silver
Episode 4
Great advice my man
Thanks 🙏🏼
Personal finance is necessary to learn
Правда всегда
Great video Nate!
Thank you 🙏🏼
how would i know if online banking is good for my situation?
ify
The fractional reserve system is kind of messed up. 🤦♂️ It does impact the value of our dollars more significantly that we think.
The CPI is how inflation is measured, but the QUALITY of these goods isn't something that is quantified. 🍕Low nutrition food doesn't increase in price as quickly as healthy food. 🥑
Same thing with a lot of other stuff like electronics - they're getting relatively cheaper. And again with wage growth and job availability. It's all relative.
👉TLDR; Basically, what I'm getting at is that inflation is much higher than we think due to the quality of goods and people's earning potential being lower.📈
You bring up a very interesting point. Economics is such an interesting field of study. The economy is a beast that we will never be able to fully understand or predict
@@NateOBrien 100% agree there.
Financial education should have been introduced in schools since early 1970's
Great explanation
Good video very helpful I’m gonna fact check this and come back thanks
why would you take out a loan from a bank just to put it back into the bank (your checking account)?
i really liked this video bro💯💯💯
Informative Good Work✌🏻😇
Great content, keep it up!
I was so lost when you try to explain the connection of putting $1000 into the bank and the inflation rate... like I was expecting a cause-effect explanation, but no... lol
He was missing the central bank (FED) and Treasury Department components. Inflation is caused by the Treasury printing more bank notes than what is backed in gold. The United States has been off the gold standard and officially on a fiat system since 1971 but technically starting in 1933.
The central bank (FED) then issues these notes to commercial banks throughout the country at what's called a prime rate. The prime rate is then adjusted up and down in order to control the rate of inflation.
What pomade you use?
It would be a good content about how to start with stock market
I have a video on that 😉
@@NateOBrien like Ricky Gutierzz
What would happen if everyone wanted there money from the bank but the bank doesn’t have any money in reserves ?
They borrow the reserves
Stocks have huge return if done smartly!!
The key is to do it smartly :)
True. Index funds allows you to, in a way, ride the market! I started that way. @Elliot Rodger
Elliot Rodger that’s a fatal error
Ur the best nate
Thank you Sam 🙏🏼
One of Andrew Yang's many policies is free financial counseling for all. I hope it's as helpful as your videos and Graham Stephan's.
This is a very helpful video. Central banks and fractional reserve banking are oppressive tools which contribute to wealth inequality. Bitcoin anyone?
Banks want to control cryptocurrencies
@@KA-iq2ko that's true because they know bitcoin is a huge threat. Banks have no way to control bitcoin though.
I agree that banking charges are very costly and by keeping money in bank account will lead to losing money value due to inflation. But I disagree with your view that banks are responsible for inflation. Bank's business is to lend the depositors money for loans after making a provision for liquidity. This is commonly known as statutory liquidity ratio which is fixed by central Bank. The effect you explained is money multiplier effect. Banks are a guardians of financial structure of a country and that is why even after a decade bitcoins can't replace bills. The interest rate provided by banks is risk free rate as even if deposit collapses, insurance kicks in. Banks do profit from our money but they are not responsible for keeping us poor.
How different is American Banks in comparison to Canadian Banks? Like do they follow the same basic financial structure?
From my understanding yes.
This banking system is adopted by almost banks globally
If grandma can hide that $1,000 under bed since 60s, why can’t you?
I have a saving account with pnc bank , got it 4 months ago and it was 2.35% , but now they lowered to 2.15% , how common/ why do they lower the interest rates?
People also invest plus clear portion of their debts which is wrong. They have to clear debts plus 10% liquidity for emergency expense
Banks are a middleman, great for liquidity if that's what you need. They're useful to funnel money into as a preliminary step to where you want to direct and partition the funds. I disagree with your title. Banks don't keep you poor, most just have an unclear concept of the time value of money, inflation, and how to outpace inflation by asset and portfolio diversification.
It should be pretty obvious that banks make their money by lending your to others at extortionate rates. A lot of people default on their loans so there's is some inherent risk to the banks lending other peoples money