<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="If you feel intimidated by the world of finance, you’re not alone. According to a study by Ally Invest, 61% of adults say they find investing in the stock market scary or intimidating. And in a report by investing app Acorns, 68% of people said they’d rather discuss their weight than talk money. ” data-reactid=”15″>If you feel intimidated by the world of finance, you’re not alone. According to a study by Ally Invest, 61% of adults say they find investing in the stock market scary or intimidating. And in a report by investing app Acorns, 68% of people said they’d rather discuss their weight than talk money.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="But Tina Hay has a solution: fitting everything you need to know about finance on a cocktail napkin. Her company, Napkin Finance, helps people understand money concepts in 30 seconds or less, using visual diagrams. ” data-reactid=”16″>But Tina Hay has a solution: fitting everything you need to know about finance on a cocktail napkin. Her company, Napkin Finance, helps people understand money concepts in 30 seconds or less, using visual diagrams.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The idea came to Hay when she was studying at Harvard Business School. As someone with a liberal arts background, Hay struggled to keep up with people with more traditional finance and business educations. ” data-reactid=”17″>The idea came to Hay when she was studying at Harvard Business School. As someone with a liberal arts background, Hay struggled to keep up with people with more traditional finance and business educations.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“I’m a visual learner, as most people are, and I found that illustrations and sketching really helped me understand topics,” she says. ” data-reactid=”18″>“I’m a visual learner, as most people are, and I found that illustrations and sketching really helped me understand topics,” she says.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Now, Napkin Finance, which launched in 2015, has grown to include a library of financial terms and topics, including taxes, investing, retirement planning, and entrepreneurship. Hay believes understanding the basics can lead people to a lifetime of financial health. ” data-reactid=”19″>Now, Napkin Finance, which launched in 2015, has grown to include a library of financial terms and topics, including taxes, investing, retirement planning, and entrepreneurship. Hay believes understanding the basics can lead people to a lifetime of financial health.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“Knowledge is power and we look at financial literacy as an opportunity for women and men to really take control of their future,” Hay says. ” data-reactid=”20″>“Knowledge is power and we look at financial literacy as an opportunity for women and men to really take control of their future,” Hay says.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Hay helps explain three basic financial topics using napkins: ” data-reactid=”21″>Hay helps explain three basic financial topics using napkins:

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Compound interest: ” data-reactid=”22″>Compound interest:

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Compound interest is reinvesting money you earn off of your initial investment. As you invest your money, you’ll earn money on your investment through interest. If you continue to invest more money, the interest will compound. ” data-reactid=”43″>Compound interest is reinvesting money you earn off of your initial investment. As you invest your money, you’ll earn money on your investment through interest. If you continue to invest more money, the interest will compound.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“It’s money on top of money,” Hay says. ” data-reactid=”44″>“It’s money on top of money,” Hay says.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Your money will quickly grow and multiply, leading to what experts call the magic of compound interest. The longer you invest, the more your money will grow. ” data-reactid=”45″>Your money will quickly grow and multiply, leading to what experts call the magic of compound interest. The longer you invest, the more your money will grow.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Bull and bear markets: ” data-reactid=”46″>Bull and bear markets:

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Understanding how the stock market works can seem intimidating, but mastering some basic terms will help you get a handle on the ups and down of the market, Hay says. ” data-reactid=”67″>Understanding how the stock market works can seem intimidating, but mastering some basic terms will help you get a handle on the ups and down of the market, Hay says.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Bull and bear markets are general descriptions for how the stock market is doing: during a bull market, stocks are rising, the economy is growing, and unemployment is falling or stable. The reverse is a bear market, where stocks are falling and unemployment numbers are rising. ” data-reactid=”68″>Bull and bear markets are general descriptions for how the stock market is doing: during a bull market, stocks are rising, the economy is growing, and unemployment is falling or stable. The reverse is a bear market, where stocks are falling and unemployment numbers are rising.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“It’s important to understand the way the market works and how to respond during those cycles,” Hay says. ” data-reactid=”69″>“It’s important to understand the way the market works and how to respond during those cycles,” Hay says.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Retirement accounts: ” data-reactid=”70″>Retirement accounts: 

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="IRAs and 401(k)s are vital ways to invest and save for retirement, but understanding the difference leaves many people confused. An IRA is an individual retirement account, where the individual sets up their account and invests funds.” data-reactid=”91″>IRAs and 401(k)s are vital ways to invest and save for retirement, but understanding the difference leaves many people confused. An IRA is an individual retirement account, where the individual sets up their account and invests funds.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="A 401(k) is an employer-sponsored account, where the employer sets up the account and then the employee contributes a percentage of their paycheck to the account, which is often matched by their employer.” data-reactid=”92″>A 401(k) is an employer-sponsored account, where the employer sets up the account and then the employee contributes a percentage of their paycheck to the account, which is often matched by their employer.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="While the two accounts are different, Hay explains both options are good for long-term saving. ” data-reactid=”93″>While the two accounts are different, Hay explains both options are good for long-term saving.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“Both IRAs and 401(k)s help you accumulate money and save for retirement, they both help you defer taxes and they both help build your wealth,” Hay explains. “It’s a great opportunity to save for the long term.” ” data-reactid=”94″>“Both IRAs and 401(k)s help you accumulate money and save for retirement, they both help you defer taxes and they both help build your wealth,” Hay explains. “It’s a great opportunity to save for the long term.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="WATCH MORE ” data-reactid=”95″>WATCH MORE

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="How to save for retirement if your job doesn’t offer a 401k” data-reactid=”96″>How to save for retirement if your job doesn’t offer a 401k

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Compound interest: the most powerful force in personal finance” data-reactid=”97″>Compound interest: the most powerful force in personal finance

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="5 tips to take your investing to the next level” data-reactid=”98″>5 tips to take your investing to the next level

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