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#financial-literacy

Financial Literacy

Essential financial knowledge and skills for business owners and entrepreneurs

Когато сергията с лимонада носи пари: Правилото за данъка от $400, което всеки тийнейджър предприемач среща

Тийнейджър дължи данъчна декларация само при $400 нетен доход от самонаемане — без минимална възраст. Как данъкът за самонаемане от 15,3%, прагът за авансови данъци от $1000, прагът за 1099-K от $20 000 и кастодиален Roth IRA се съчетават.

Return on Equity (ROE) Explained: What It Measures, What Counts as Good, and How to Break It Down

Return on Equity (ROE) divides net income by owner's equity — a 15% ROE means the business earned 15 cents per dollar of the owner's capital. This guide covers healthy benchmarks (12–15% baseline, 15–20%+ strong), the three-part DuPont breakdown of margin, asset turnover, and leverage, and the pitfalls — debt-inflated returns, negative equity, one-time items — that distort the ratio.

The Rule of 72: The Mental-Math Shortcut Every Business Owner Should Use Before Investing Retained Earnings

Divide 72 by an annual rate and you get the approximate years for money to double: $50,000 at 9% doubles in 8 years, while a 24% credit card balance doubles what you owe in 3. How business owners can use the Rule of 72 to compare investments, price debt, and gauge inflation's drag on idle cash.

Net Present Value, Explained: How to Tell If That New Piece of Equipment Will Actually Pay for Itself

How to run a net present value (NPV) calculation before buying business equipment — a worked example ($50,000 machine, $20,000 annual savings, 12% discount rate yields $10,748 NPV), how to choose a discount rate, why NPV beats payback period and IRR alone, and the five mistakes that wreck the math.