5 Areas Where Interest Rates Matter!

Although, we hear, a lot of opinions, about, interest rates, and their trends, and impacts, very few people seem to understand, the significance, and importance/ relevance, of these rates, in several areas of our lives! After, many decades of involvement, in political campaigns, leadership, leadership training/ planning, real estate, financial sales and consulting, etc, I strongly believed, one benefits, by understanding, more about these, and how they affect, many things, in our lives! Whether, related to personal, organizational, and/ or, public finance/ spending, home ownership and related costs, credit – related issues, business matters, stock and bond pricing, etc, interest rates, truly, significantly, matter! With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 of these areas, and how the cost – of – money, makes a significant difference.

1. Bond prices and interest rates: The price of a bond, generally, is inversely – related to interest rates! When these rates go down, prices, rise, and when they go up, the inverse occurs! Bonds have, what is known, as, a par – value, which is the price, paid, at the end of the term. Markets usually set these at 100, which represents $1,000 per bond, at maturity. However, during the period, the pricing can rise or fall, which impacts, liquidity – related issues!

2. Mortgage rates: For the last few years, we have been witnessing and experiencing, record – low, mortgage interest rates, which have helped the overall, real estate/ housing market, especially, in terms of, pricing increases! In most areas of this country, we are seeing, home prices, at their highest levels, ever, by a significant, dramatic amount! When this rate, is low, a home buyer is able to buy, more – house – for – his – bucks, because, his monthly payments, are so low! Consider, however, what might be the potential ramifications, and impacts, when these rates, will, inevitably, rise?

3. Consumer credit: Low costs of borrowing, help the automobile industry, in terms of consumer financing, etc! Although, not as much as other vehicles, rates on credit card debt, are lower, and there are often, shorter – term, promotions, offering deals! However, since, most of these are variable, and based, on some index, etc, what happens, when there is an increase, in this?

4. Business borrowing: Another area affected, is business cost of borrowing! Presently, they have had access, to relatively, cheap – money, which helps in reducing the costs of borrowing, overall operations, purchasing inventory, etc. But, what happens, when this, ticks – up?

5. Impacts on stock market prices: For some time, because bonds have paid so little, in terms of dividends, etc, many have considered, the stock market, the only game, in – town! In addition, many corporations, have seemed, better – off, than they probably are, and we have witnessed, a higher, ratio of prices to profits, than in the past! How long will this last? How high can it go?

Many factors impact these issues, especially: actual and/ or, perceived inflation; consumer confidence; politics/ government actions/ the Federal Reserve, etc. The more you know, and understand, hopefully, the better – prepared, you will be!

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Factors to Consider When Choosing a Preschool Center

Children are a gift from God and thus it is paramount that you take good care of them. This is in their various aspects in life for example socially, psychologically among others. Once a kid is young, it is a very delicate stage for them. The school you take them to will mold them into either a responsible citizen or a social misfit. The probability of either happening is determined by the kind of preschool you take them to. This is where they first learn how to engage with others, interact with them through various ways. It is thus very important that you choose the best preschool center to give your kid the best life. At preschool they learn how to draw and do the very basic stuff in life but important.

The decision to choose a preschool may seem to be an easy one that only considers things such as the curt, the location and how long the school day is among others. However, this is not true, it is actually an intricate decision that requires you to think of other factors which are vital as well. Below is a guideline on some tips that you can consider in order to pick the best preschool center.

The first thing is the teaching staff. These are the individuals that will be spending a lot of time with your kids and what they influence them to be is what they will become. It is thus good that you for a school that has teaching staff that are experts in children matters. They should be able to create a bond with the child since it gives them a sense of safety and security. The staff should be friendly so that the connection between the child and them can last long. With regards to teaching in in class, they should be knowledgeable on how to make the class engaging, for instance by asking questions, encouraging them to think among others. Good teachers will also allow the kids to socialize with others so that they can overcome shyness.

Another thing you should think about is the school director. This is an important individual because they set the syllabus to be taught and hence affect the kind of information your kids receives while there. If possible it is good to meet with him or her so that you get to know them more. Before choosing a preschool also consider asking about their cancelation policy in case you forego taking your kid there. For instance, what percentage is refundable to you. The safety of the school is also of importance. Evaluate and request to see the protective measures the school has for example in case of fire, are there sprinklers and fire extinguishers.

The environment of the school should also be friendly and suitable for young kids. For example, the furniture should fit the size of the kids and there should be enough space for them to play around without getting injured.

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