money

Reviewed by Margaret James

The New York City metro area dominated the top 10 of The Wealthy 1000, a 2024 ranking of the wealthiest ZIP codes in the U.S. Also near the top were ZIP codes in and around San Francisco, Miami, Chicago, and Boston.

The top ZIP code in Dallas ranked at 82, placing it in the top 10%. This ZIP code, 75225, covers some of University Park and North Dallas. Using the data from this ranking, we found the 4 most expensive ZIP codes in Dallas.

Key Takeaways

• The wealthiest ZIP code in Dallas—75225—ranked 82 in the nation.
• This ZIP code was also the wealthiest in Texas.
• Other ZIP codes that ranked relatively high include 75205, 75230, and 75209.

The Priciest ZIP Codes in Dallas

Here are the Dallas metro’s top 4 most expensive ZIPs – from highest to lowest – along with the average home value, and whether that home value has increased or declined in the past year. The median household income data comes from the U.S. Census Bureau.

1. ZIP Code 75225

This ZIP code is ranked 82 out of 1000.

The average home value is $1,860,275, which has risen 8.4% in the past year.

The median annual household income is $189,985.

This ZIP code which includes part of University Park, an area known for its attractive homes, beautiful parks and many churches. Founded in 1915, University Park is home to Southern Methodist University and the George W. Bush Presidential Center.

The most expensive home in 75225 on Zillow is listed at $7,995,000. This stately, gated home offers nearly 10,000 square feet of living space, with six bedrooms, eight baths, an upgraded kitchen, a gym, a game room, a media room, and a backyard with a covered porch and a large pool. 

Note

ZIP code 75225 was also ranked the wealthiest ZIP code in Texas.

2. ZIP Code 75205

This ZIP code is ranked 220 out of 1000.

The average home value is $1,921,943, which has risen 6.4% in the past year.

The median annual household income is $188,396.

The most expensive home in 75205 on Zillow is listed at $14,750,000. This modern home in Highland Park was built in 2018. It boasts nearly 10,000 square feet of living space, with five bedrooms and eight baths. There’s a gourmet kitchen with an oversized island, plus a climate-controlled wine cellar with room for over 500 bottles. Outside, there’s a heated living space as well as multiple patios and balconies, as well as a pool and spa.

3. ZIP Code 75230

This ZIP code is ranked 261 out of 1000.

The average home value is $944,273, which has risen 5.2% in the past year.

The median annual household income is $109,864.

The most expensive home in 75230 on Zillow is listed at $10,495,000. This colonial home on nearly an acre of land was built in 2016 and includes nearly 10,000 square feet of living space, with five bedrooms and eight baths. The entire property is smart-controlled, from the kitchen with luxury appliances to the primary suite with dual baths. There’s also a guest suite, an office with built-ins, en suite bedrooms, a theatre room, a game room, and a playroom. The outdoor space boats a spa, pool, fire pit, and sport court.

4. ZIP Code 75209

This ZIP code is ranked 312 out of 1000.

The average home value is $972,133, which has risen 5.4% in the past year.

The median annual household income is $126,121.

The most expensive home in 75209 on Zillow is listed at $5,595,000. This one-acre estate was built in 2008 with about 8,500 square feet of living space. There are six bedrooms and nine baths. There’s a newly-remodeled kitchen that includes a large island and a wet bar. The primary suite features outdoors access and a massive walk-in closet. The home also offers an elevator, a workout room, a media room, a playroom, and a wine cellar. There’s also a guest house, a batting pitching cage, and a sport court.

How Big is Dallas?

Dallas is the third largest city in Texas (behind Houston and San Antonio) and the ninth largest in the United States overall.

What Industries Is Dallas Known for?

The city evolved in the 19th century as an oil and cattle center and has experienced a boom in recent decades from the banking, electronics, fashion and motion picture industries.

How Many People Live in Dallas?

The estimated 2023 population of Dallas is 1.3 million.

The Bottom Line

“Big D,” as Dallas is sometimes called, is known for “big” everything—big hair, big cars, big boots, big houses. Compared to the cities that made the top of The Wealthy 1000 list, Dallas is also home to big real estate deals: You’ll get a lot more house for your money in Dallas. 

You could lose all or part of your account—or gain all or part of your spouse’s

Fact checked by Jared Ecker
Reviewed by Khadija Khartit

If you’re like many people who participate in a 401(k) plan at work, it may represent one of your most significant assets. Should you and your spouse decide to divorce someday, your 401(k)—and theirs, if they also have one—will figure prominently in whatever financial agreement the two of you work out or that a court imposes on you.

Here is what you need to know about 401(k)s and divorce.

Key Takeaways

• If you and your spouse divorce, your 401(k) could be divided up as part of the financial settlement.
• The same is true for your spouse’s 401(k) if they have one.
• How the 401(k) is to be divided will be detailed in a qualified domestic relations order (QDRO).
• In some cases, money that you contributed to your 401(k) plan before you married will be off-limits.

What Happens to 401(k)s in a Divorce?

Like individual retirement accounts (IRAs), 401(k) plan accounts are owned individually and not jointly. While your spouse may be named as the beneficiary on your 401(k), you alone own it. The same goes for your spouse’s 401(k). 

If spouses divorce, their 401(k)s and other individual holdings—as well as any jointly held assets, such as a home or bank account—may be divided up as part of the financial settlement.

Assets held in a 401(k) or other qualified retirement plan are typically divided through a qualified domestic relations order (QDRO), which the Internal Revenue Service (IRS) defines as “a judgment, decree or order for a retirement plan to pay child support, alimony or marital property rights to a spouse, former spouse, child or other dependent of a participant.”

In a divorce, the state where you live will come into play, especially if you leave it to a judge to decide how to split up your assets. In a community property state, the court will split your marital assets 50/50. In the case of a 401(k), the money that you contributed to your account before you were married isn’t considered a marital asset. In an equitable distribution state, the court will divide up your assets in what it views as an equitable manner, which may or may not be 50/50.

Note

Depending on what else you and your spouse own, it can sometimes be easier to leave your retirement plans alone and divide up other assets instead.

How a Qualified Domestic Relations Order (QDRO) Works

When 401(k) assets change hands in a divorce, the spouse who is entitled to receive a portion of the other spouse’s account is referred to as an alternate payee. Alternate payees may have several choices for how they receive their money, depending on how the QDRO is written.

For example, the QDRO may provide for either a “shared payments” or “separate interest” arrangement. With shared payments, the spouse and ex-spouse will split, proportionately, each benefit payment that the plan participant receives.

With a separate interest arrangement, the 401(k) account will be split into two parts, again proportionately, and the alternate payee’s share may be put into a separate QDRO account by the plan’s administrator.

In a separate interest arrangement, the alternate payee can choose to receive benefits on their own timetable. They may also have the option to take their share as a lump sum and roll it over into their own 401(k) plan or an IRA in their name.

Important

After a divorce, don’t forget to review your 401(k) beneficiary designations and change them if necessary.

How 401(k)s Are Taxed in a Divorce

If the alternate payee chooses to roll over their share of the account into their own 401(k) or IRA, that transaction can be tax-free, as with any other retirement plan rollover. They won’t have to start paying taxes on any of the money until they start taking distributions from it.

But if, instead of rolling over the money into another retirement account, they decide to take some or all of it in cash, they will have to pay income tax on that amount. However, they will be exempt from the usual 10% tax on early distributions for anyone under age 59½.

Once the alternate payee begins taking distributions from their ex-spouse’s account, a separate QDRO account, or their own retirement account, those amounts will be subject to income taxes, just as they would if it had been their 401(k) all along.

What Happens to a Traditional Pension in a Divorce?

A traditional, defined-benefit pension is subject to similar rules as 401(k)s and other defined-contribution plans. However, the calculations for dividing up the account can be more complicated and may require the services of a pension actuary or other expert.

How Are Individual Retirement Accounts (IRAs) Divided in a Divorce?

IRAs are not included in qualified domestic relations orders (QDROs) because they are not employer-based plans. Instead, they are divided up as part of the divorce decree or other written instrument. One spouse can transfer all or part of their IRA to the other spouse’s IRA without either of them incurring taxes. This is often referred to as a “transfer of account incident to divorce.”

Can a Divorced Spouse Collect on Their Ex-spouse’s Social Security Benefits?

In some cases, yes, a divorced spouse can collect Social Security benefits based on their ex’s earnings record. To qualify, the applicant must currently be unmarried and at least age 62, and the marriage must have lasted 10 years or more. The amount that the divorced spouse receives will not have any effect on the other spouse’s benefit.

The Bottom Line

If you divorce, you could lose all or part of your 401(k) account—or gain all or part of your ex-spouse’s account. The terms of that arrangement will typically be spelled out in a qualified domestic relations order (QDRO).

Learn what it takes to trade 0DTE options

Reviewed by Samantha Silberstein

Once you’ve had a little experience trading options, you might become curious about the opportunities of trading options intraday. In 2022, the Chicago Board of Options Exchange (Cboe) announced that it would issue weekly options with expiration days on each day of the week. This announcement applied to options on the S&P 500 Index (SPX), but more symbols have continued to be added as trader interest in zero days to expiration (0DTE) options has grown. 

While it might sound like the kind of activity only an energy-drink company would sponsor, the reality is that 0DTE options are best suited for experienced options traders that know how to manage the massive volatility that is often associated with this type of trading. A trader who wants to pursue this strategy will also need to research the right online broker or trading platform to fit their needs. We’ve compiled the basics every 0DTE enthusiast should know, and have structured this guide for trading options to answer the questions most novice option traders have. 

How to Trade 0DTE Options

Traders who want to participate in 0DTE option trading should recognize that they will be making frequent transactions. Consequently, they would benefit from a broker that has low commission costs for options, great option analysis tools, fast execution speeds, and strong education resources.

Opening an account will require that you share personal information about your identification, financial status, and trading experience. Once you’re prepared to share the necessary information, you can research the brokers with which you can open an account. Investopedia’s broker reviews can help with that. After you have selected a broker to use, and filled out the account application (this is usually done online and is fairly quick), then you can request options trading approval.

Step 1: Select a broker. Choose a reputable online broker, like Interactive Brokers or Webull, where you have access to critical options trading tools like options calculators, extensive charting tools, screeners, a demo account, strong trading technology, extensive educational materials, and a transparent fee structure. 

Step 2: Register an account and complete the exchange’s customer onboarding process. Broker requirements for approving options trading in your account can vary widely. Some brokers may have a tiered level of options trading approval. Lower tiers include buying and selling options, while higher tiers include spread trading, index trading and selling uncovered options. Trading options on SPX, NDX, or XSP will require a higher level of trading authority. 

Some brokers may ask you to complete a questionnaire or take an online course to demonstrate your knowledge of options trading. All such requirements are stipulated by the broker simply to manage their risk. Consequently, the higher your net worth or the larger your account, the less strict a broker is likely to be about such requirements.

Step 3: Fund your account. Once your application is processed and you are approved for options trading, you will want to fund your account with more than the minimum required amount and review and accept the language of the options agreement. If you plan to trade 0DTE options on margin, you’ll need to meet your brokerage firm’s margin requirements. This can include meeting ongoing minimum balance requirements and promptly addressing margin calls. Once these are complete, your account will be capable of trading options. 

Step 4: Research option strategies. 0DTE option trading is more complex than stock trading because it requires factoring in the element of time decay and managing in a very short time frame. Some traders prefer to use option selling strategies because they can expect to win consistently on most days. The tradeoff is that some selling strategies can generate very large losses on rare occasions. 

Other traders prefer to use buying strategies as a way of limiting their risk. This often limits their potential loss to the cost of the option. If the strategies provide sufficient opportunity for large gains (larger than the cost of the option), then buyers must find ways to manage their losses and balance them against anticipated gains. 

Best Options Trading Platforms

What You Need to Open an Options Trading Account

Before you can start trading options, you need to open an account with a brokerage firm. To do this, you’ll need to provide information that covers personal identification, such as the following:

• Name
• Address
• Social Security number 
• Employment status
• Job title 

These are provided for account ownership and standard banking purposes. 

The broker will also ask you to provide additional information regarding the following key items: 

• Financial status
• Liquid assets
• Trading experience 
• Risk tolerance
• Options trading knowledge

This information is used to assess the broker’s risk of having you as a customer. It helps reduce the risk that you might make a trading mistake that could somehow spill over from your account and impact their business. 

Know the Risks Associated With 0DTE Options

Expiration-day trading carries an elevated risk of losing everything a trader spent in buying the option contract, simply because the option will expire as soon as the trading session is over. For example, if a trader buys an at-the-money (ATM) call option two hours before the close, and the underlying security falls strongly with an hour left to go in the session, there is very little chance that it will rebound back to its former levels. The trader will then find their contract nearly worthless.

Another risk of trading 0DTE options applies exclusively to option sellers. This includes an increased risk of being assigned when a contract buyer exercises the option before the market closes. Such assignments are rare, but they can happen since American-style options can be exercised at any moment up until expiration. 

The biggest area of risk for option buyers also happens to be the most prevalent area of opportunity for sellers: theta decay. Theta decay is a persistent, mathematical force in option pricing, and option traders have to know how they will manage it in order to be successful.

Theta Decay

Option prices are sensitive to the passage of time. The closer the day comes to expiration, the more the price of the option will decline, all other factors being equal. This loss of value that occurs over time is known as theta decay and is sometimes referred to as time decay. The amount of theta decay an option has will not only increase leading up to the day of expiration, but will also increase throughout the hours of the final day before expiration. 

During the final hours before expiration, even though theta decay continues to increase, the relative influence from the underlying security’s price action begins to increase. Even a normal-sized move in the final hours before expiration can have a large impact on the change of the price–potentially bigger than the decline of time value. That’s what makes 0DTE trading so attractive to buyers. 

However, most buyers simply overestimate the chances of a big move in the underlying occurring within a short window of time on expiration day. That’s why option sellers are so frequently able to generate winning trades.

What Securities Offer 0DTE Options?

All options can be traded as 0DTE options, but only a few securities offer options which expire every day. By the end of 2022, Cboe offered expiring contracts on every trading day for the following securities: 

• Nasdaq 100 Index (NDX)
• S&P 500 Index (SPX)
• Mini-SPX Index (XSP)
• SPDR S&P 500 ETF Trust (SPY)
• Invesco Nasdaq 100 Trust (QQQ)

The growing popularity of these instruments may lead to more securities having daily-expiring options made available.

Factors to Consider When Opening an Options Trading Account

Customer service: This is critical for newer traders who need someone to call or chat with when they don’t understand what they see in their account. As a beginning option trader, you’ll want a broker that can be rapidly accessible and able to give quick answers on things like balance changes, margin requirements, margin call notices, or other unusual notifications. A broker representative should be available to clarify what is happening in your account regarding option trades especially on topics of expiration, assignment, and closing out spread trades. 

Fees and commissions: Some brokers charge commissions on option trades, even if they don’t charge commissions on trades of stock shares. The costs of commissions and fees can vary significantly as certain brokers prefer to remove some or all commissions from the customer transaction. For those that do charge, $0.65 per contract is a typical price.

Account minimums: For stock and option trading, opening an account with a minimum deposit of several thousand dollars has become a thing of the past. Most brokers will allow customers to open an account without funding it right away.

Research and trading tools: Our comprehensive reviews show that most brokers supply fundamental, technical, and even proprietary research for traders. Online web-based brokers tend to offer a more sophisticated toolset for trading than mobile-based apps used by some of the newer brokers such as Robinhood, Webull, or eToro. Sophisticated charting tasks are more productive on a broker’s platform that runs on a PC or Mac platform. The same is true for complex order types such as conditional or branching orders. 

Educational content: Highly informative articles, videos, online classes, interactive quizzes, and more are common nowadays for many brokers. The most popular broker platforms are often featured by option traders who create content on social media platforms as well. You shouldn’t have to struggle finding educational content for your trading platform, so if you do, take that as a warning flag.

Demo account: Many of the brokers reviewed include demo accounts. These allow a trader to make simulated trades based on the same platform interface they will use to make trades. This can be very helpful for traders just getting started trading options. But not all brokers provide this tool, so beginner-level traders may want to check out the Investopedia simulator if they have no tools available from their broker.

FAQs

What Are Zero Days to Expiration (0DTE) Options?

A 0DTE option can be defined as any contract that is being traded on the day it expires. The Cboe does not specifically generate option contracts that expire on the same day they are issued. Instead it issues weekly options with expiration days for each day of the week. 

With the exception of contracts that expire on Friday, most of these options are issued two to three weeks before their expiration date. Options with one month or more until expiration continue to be those that expire on Fridays. 

Regardless of how long ago the contract was issued, the final trading day for any option has one characteristic in common: It has the least amount of premium associated with the time before expiration. This creates the perception of opportunity for traders who perceive that they can only lose as much as the cost of the option, but imagine the option may become far more valuable than its original price.

How Do Zero Days to Expiration (0DTE) Options Work?

The lure of 0DTE options is often greater than what bears out in the markets. Traders who imagine that an option which costs comparatively little to begin with may assume that opportunities abound for that same contract to increase in price by multiples. However, all options are priced in such a way that accounts for the anticipated price fluctuation of the underlying security before the option expires. This is known as implied volatility. 

Since a 0DTE option has only one day left to account for trading moves it creates a condition where traders often estimate the potential for gains. That’s because it allows them to leverage the underlying at a lower cost. 

For example, a 400-strike at-the-money call option for SPY that has 60 days left for expiration might cost $10 per share (or $1,000 per contract), while the same contract on the day of expiration might cost no more than $1.50 per share (or $150 per contract). Yet both of these contracts control the same 100 shares of SPY, which would hold a notional value of $40,000. The leverage of the 0DTE option is therefore much greater.

Despite the greater leverage, option sellers charge a higher percentage of implied volatility for these options. That’s because they know that anything can happen in the markets, and they need to have prices that protect them from that risk. For this reason, some experts advocate the use of selling strategies over buying strategies when using 0DTE options.

One additional benefit for trading these options benefits both buyers and sellers alike. The day of expiration usually produces the heaviest volume of ATM option contracts. That means these options will often trade with the least amount of difference between the bid and the ask prices (the measure of transaction cost for traders). 

Why Are 0DTE Options So Popular?

Trading options on the day of expiration creates several benefits that have attracted both retail and institutional traders alike. These benefits include:

• Greater leverage
• Less transaction cost
• Efficient protection against daily news events
• Higher frequency of opportunity

These benefits may not apply to all investors, but they are real enough that 0DTE trading is attracting many participants. Some reports indicate that 0DTE option trading has increased to such an extent that the impact could have dire consequences for the market. However, still others dispute that claim. 

Among all the benefits of 0DTE options, perhaps the one that stands out for investors is that of being able to protect a portfolio at a moment’s notice. 

Imagine being able to buy fire insurance on your house for just one month, or one weekend, or just for those three hours where you’ll be flipping burgers on your backyard patio. The extreme efficiency of paying only for protection when it is precisely needed may turn out to be a boon for large portfolio investors. The fact that savvy speculators can profit from such moments has only attracted more attention, which in turn helps the pricing of these options become more efficient. 

For traders, the most attractive benefit is different. Traders that become skilled in their preferred strategies benefit from frequency of opportunity. Being able to trade 0DTE options every day of the week is a big benefit for those who have mastered a particular 0DTE strategy.

What Does 0DTE Mean?

0DTE stands for ”zero days until expiration.” It implies that the option you are trading today will functionally expire as soon as the market closes. Technically options expire the day after their last tradable day, but since there are no days left to trade before expiration, the phrase is appropriate. 

What Happens If You Don’t Exercise a 0DTE Option?

You can buy or sell a 0DTE option contract right up until the market closes. As the market closes, if the option is in the money, it will be exercised automatically. If it is out of the money, then it will expire worthless.

Are 0DTE Options Risky?

Option buyers face the same risk with 0DTE options as they would with any other kind of option, but they also carry the added risk of a compressed timeframe for trading. That means they may need to spend more time observing the option price changes in real time to be certain they can respond if an unexpected price change should occur. Option sellers face the same risk, but it can create larger losses for them if prices move strongly in one direction. The compressed timeframe also means that option sellers may experience an increased risk of being assigned if a buyer chooses to exercise the option before the market closes. 

How Much Money Do You Need to Trade 0DTE Options?

For practical matters, traders wouldn’t want to spend all of their trading capital on a single 0DTE option trade, because they would literally lose everything if they hold the option as it expires worthless. So, it is more practical to attempt 0DTE strategies if you have an account balance greater than $25,000, so you can use 1% ($250) of your balance for each trade you implement. This amount would allow you to find many worthwhile trading opportunities. However, you might find that you require a greater balance so that you can trade higher-priced 0DTE options.

Learn what it takes to buy and sell Bitcoin options

Fact checked by Suzanne Kvilhaug

Bitcoin options are financial derivatives that enable investors to speculate on the price of the digital currency with leverage or hedge their digital asset portfolios. Available on both traditional derivatives exchanges and on crypto trading platforms, Bitcoin options have emerged as a popular investment product among advanced crypto traders. 

For individuals looking to trade Bitcoin options, finding the right trading venue that offers ample liquidity and a high level of security is essential. We’ve compiled the basics every option trader should know, and have structured this guide for trading Bitcoin options to answer the most common questions novice option traders have. 

Key Takeaways

• Bitcoin options are financial derivatives contracts that allow you to buy or sell Bitcoin at a predetermined price on a specific future date.
• Trading Bitcoin and other cryptocurrency options works much the same as other options, except they’re typically less liquid.
• There are some trading platforms and crypto exchanges where you can trade Bitcoin options; but you’ll need to set up and fund an account first.
• Trading Bitcoin options is riskier and more complex than trading spot Bitcoin, which is itself risky and speculative.
• Traders should conduct as much research as possible (including consulting with a financial advisor) before trading Bitcoin options, and must select a reputable reputable crypto derivatives exchange with strong security for their trades.

Understanding Bitcoin Options

Options are financial derivatives contracts that give holders the right but not the obligation to buy or sell a predetermined amount of an asset at a specified price, and at a specific date in the future.

In the case of Bitcoin options, the underlying asset is the cryptocurrency Bitcoin (BTC). While the cryptocurrency options market is still fairly new, you can already trade Bitcoin and Ethereum options on a handful of traditional securities exchanges and crypto trading platforms. 

Important

Traders who wish to gain exposure to Bitcoin now have additional choices. The 11 recently launched spot Bitcoin exchange-traded funds (ETFs), which were approved by the U.S. Securities and Exchange Commission in January 2024, each offer a basket of cryptocurrency securities and can be traded on Cboe BZX, NYSE Arca, and Nasdaq.

Cryptocurrency options function in essentially the same way as option contracts on assets like stocks, indexes, or commodities. However, crypto options are generally less liquid than ETF options, index options, or on heavily traded commodities like gold. This is a result of the relatively smaller size of the crypto market when compared to other investment markets. 

The result is that crypto options feature a comparatively bigger gap between the bid and ask price. This generates higher transaction costs in trading crypto options.

European vs. American

There are two main types of options contracts: European and American. The key difference between the two is that European-style options can only be exercised at expiration, while American-style options can be exercised at any time up until the expiry date. 

ITM vs. ATM vs. OTM

An options position can either be in the money, at the money, or out of the money. 

• An in-the-money (ITM) option refers to the situation when the option has intrinsic value. If you exercised an in-the-money option you would profit. For call options, this is when the market price is higher than the strike price. Put options are in-the-money when the market price is below the strike price.
• An out-of-the-money (OTM) option refers to a situation when you would lose money if you exercised the option, meaning the option currently has no intrinsic value. In the case of call options, this is when the market price is lower than the strike price. For put options, this is when the market price is higher than the strike price.
• An at-the-money (ATM) option is currently trading at the strike price. 

Calls vs. Puts

You can either buy a call or a put option. A call gives the holder the right to buy the underlying asset, while a put option gives the holder the right to sell the underlying asset. 

Whether you buy or sell a Bitcoin put option or call option depends on whether you want to speculate on a rising or falling price or whether you are looking to hedge crypto exposure. 

Physical vs. Cash Settle

Options can either be cash settled or physically settled. For example, if you trade cocoa options, you could—if the options contract determines it—receive shipments of cocoa once the options contract expires.

When bitcoin options are settled physically, the bitcoin is transferred between the two parties. When cash settlement is used, the parties would exchange dollars or another currency.

Opening an Options Trading Account

Generally, you’ll want an options trading platform that supports the trades you’re looking to make, with costs that are affordable for you.

Our picks of the best options trading platforms below allow you to trade options, cryptocurrency, and even crypto futures.

For Bitcoin options specifically, a crypto trading platform is likely preferable. Examples of crypto trading platforms that provide Bitcoin options include:

• Bit.com
• Bybit
• Deribit
• OKX.

Risks to Watch for When Trading Bitcoin Options

Before you begin, know that trading cryptocurrency options involves a high level of risk. If you are new to derivatives trading, you should start with a demo account to learn the ins and outs of options trading before putting investment capital at risk. 

Also, keep in mind that Bitcoin itself is not regulated as a security, but rather is considered a digital currency.

Warning

Investing in cryptocurrencies, decentralized finance (DeFi), and initial coin offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions.

Options Are Riskier Than Spot Trading

Trading Bitcoin options is generally riskier than buying and selling Bitcoin in the spot market.

For example, suppose you buy a call option on Bitcoin with a strike price of $35,000 and an expiry date that is three months away. If the price of Bitcoin doesn’t surpass $35,000 by the expiration date, you will lose the options premium (the price you paid for the option) in full. 

Options Are More Complex Than Spot Trading

When trading Bitcoin options, the price of Bitcoin is not the only factor affecting the value of options contracts. There are several key factors that affect the value of the options you buy or sell, but time decay is by far the most critical. That’s because as the time moves closer to the expiry date, the value of an options contract decreases because the time remaining to trade or exercise the options diminishes.

The Bitcoin Options Market Is Less Established 

While Bitcoin options can be found on traditional securities exchanges, like the Chicago Mercantile Exchange (CME), and on dedicated crypto trading platforms, the BTC options market is still quite young and doesn’t have the deep liquidity found in mature options markets. This can affect price slippage, especially in options with longer maturities. 

How to Trade Bitcoin Options

Trading Bitcoin options is different from trading spot Bitcoin. Not only is the risk profile of your trade completely different, but there is a range of different aspects to consider when looking at which Bitcoin options contracts to buy or sell.

Before you can start trading Bitcoin options, you need to sign up with an exchange that supports crypto derivatives. If your online brokerage account provides you with access to the CME, you could trade Bitcoin options on the leading securities exchange. For most private investors, however, the more likely choice will be to sign up with a digital asset exchange that offers Bitcoin options trading, such as Bit.com, Bybit, Deribit, or OKX.

Here’s how it works. 

Step 1: Sign Up for a Crypto Exchange

Find a digital asset exchange that offers Bitcoin options trading. Ensure you select a reputable exchange; then complete the onboarding process.

Step 2: Deposit Funds in Your Trading Account

Next, deposit U.S. dollars (using one of the exchange’s available fiat funding options) or cryptocurrency in your exchange account. 

Step 3: Practice Trading Options Using a Demo Account

Ideally, the exchange you have signed up for offers a demo trading account where you can start trading Bitcoin options without putting real capital at risk. That way, you can become comfortable with how the options Greeks affect Bitcoin options. 

Step 4: Research the Bitcoin Market 

Learn what drives the price of Bitcoin to get an idea of what type of options trading strategy is best suited for the cryptocurrency and for your risk/return profile. The more you learn about the Bitcoin market and Bitcoin options, the more likely you’ll be able to trade options profitably. 

Step 5: Place Your First Bitcoin Options Trade

Once you feel comfortable with Bitcoin options and how they work, you can place your first trade using the platform. 

What You Need to Open an Options Trading Account 

To open an options trading account, you’ll need the same documents as for a standard spot trading account.

Personal Information

Crypto options trading platforms generally require the following information from you:

• Full name
• Email address
• Phone number 
• Home address

Additionally, to pass a trading platform’s Know Your Customer (KYC) verification process, you may also need to provide a scanned copy of your government-issued ID (such as a passport or a driver’s license) and proof of address (such as a utility bill or a bank statement). You may also be asked questions about your level of expertise as a trader to enable access to derivatives trading products on the platform.  

Minimum Deposits

Crypto exchanges generally have very low minimum deposits; $10 to $20 is the industry standard, although there are also trading apps that allow you to start buying crypto with as little as $1. 

To trade Bitcoin options, however, you will definitely need more than $1 to get started. Even the cheapest BTC options contracts have premiums worth over $10. 

Trading on Cryptocurrency Exchanges

Trading on cryptocurrency exchanges is a little different. Unlike traditional brokerage firms, cryptocurrency exchanges are not members of the Securities Investor Protection Corp. (SIPC). Therefore, unless user terms specify otherwise, investors with cryptocurrency assets commingled on a custodial cryptocurrency exchange could potentially lose their funds as unsecured creditors.

The three main types of cryptocurrency exchanges are centralized, decentralized, and hybrid.

Centralized Exchanges

Centralized crypto exchanges are online trading platforms that look and feel like traditional online brokerages. You can use them to trade a range of cryptocurrencies in the same way you would buy stocks, bonds, or ETFs using an online broker account after you have registered and completed KYC verification.  

Decentralized Exchanges

Decentralized crypto exchanges are Internet-native online trading venues powered by smart contracts that allow traders to buy and sell cryptocurrencies on a peer-to-peer basis. Crypto assets are traded directly from wallet to wallet. There is no need to create an account or complete a KYC onboarding process, making decentralized crypto exchanges accessible to anyone in the world. 

Hybrid Exchanges

Hybrid crypto exchanges merge a centralized order book for matching trades with decentralized crypto asset custody, allowing crypto traders and investors to benefit from the best features of both types of crypto exchanges. 

Factors to Consider When Opening an Options Trading Account

When choosing where you’ll place your trades, keep the following factors in mind:

• Security: Choose a reputable crypto derivatives exchange that has a high level of security, highlighted by a track record of no hacks. 
• Fees: Trading fees can affect your trading profitability, especially when you are an active trader on an exchange with high commissions. Hence, it’s important to choose a crypto derivatives trading platform that balances low fees with platform reliability, strong trading technology, and highly rated customer service. 
• Supported cryptocurrencies: If you are looking to trade a range of crypto options, you will need to choose an exchange that offers more than just BTC options. 
• Research tools: If you plan on trading Bitcoin options, you should use a platform that provides you with all the tools you need to set yourself up for success. Ideally, the trading platform should offer a range of charting tools and options calculators and highlight all aspects of each contract in a clear, easy-to-understand manner. 
• Storage and custody: Choose a trading platform that holds most, if not all, customer funds in cold storage. That greatly reduces the chances of losing funds due to an exchange hack. Moreover, if the exchange has additional wallet security features in place, such as withdrawal address whitelisting, that’s even better. Address whitelisting is a popular exchange wallet security feature that only allows crypto withdrawals to specific “whitelisted” external wallet addresses predetermined by the user. 
• Customer service: Ideally, you should also choose an exchange that has responsive, high-quality customer support. After all, it’s your money at stake, so if there are any issues with the platform, you need to be able to resolve them quickly with the help of the exchange’s support team.  

Are Bitcoin Futures the Same as Bitcoin Options?

No. Bitcoin futures are not the same as Bitcoin options. Bitcoin futures obligate the buyer to purchase or the seller to sell a predetermined amount of Bitcoin at a specific price and date in the future. Conversely, Bitcoin options give the holder the right but not the obligation to buy or sell Bitcoin at a predefined price and date in the future. Therefore, options are more flexible than futures. 

How Can You Hedge With Bitcoin Options?

Bitcoin options are an excellent investment product for hedging digital asset exposure. For example, if you have a crypto portfolio composed of long positions in Bitcoin (BTC), Ethereum (ETH), Stacks (STX), Dogecoin (DOGE), and Solana (SOL), you could purchase Bitcoin put options with a 100% hedge ratio so that if the crypto market crashes and your portfolio drops in value, your profit on the BTC put options contracts would offset roughly all of your losses on your crypto portfolio. 

Should the market not drop in this scenario, you will lose the money you paid for the options contracts. 

Can You Trade Options on Crypto Exchanges?

Yes, but not on all exchanges. Numerous digital asset exchanges provide crypto derivatives, including Bitcoin options, on their platforms. Notable examples include Bybit, Deribit, and OKX. There, you will find BTC options contracts with various strike prices and expiration dates, giving crypto traders the flexibility to execute complex options trading strategies.

The Bottom Line

Traders wishing to execute a Bitcoin options trading strategy should choose their trading platform or cryptocurrency exchange with care. There’s always risk when trading derivatives, but the relatively new and illiquid nature of the Bitcoin options market means traders should exercise additional caution to protect their investment capital.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

Reviewed by Gordon Scott
Fact checked by Yarilet Perez

If you work in the business world, there’s a very good chance you’ve heard of Bloomberg LP. The company is among the leading providers of financial news and information. It also provides price data, analyst coverage, analysis tools, and other services.

It’s probably best known for its print and broadcast news services—it owns BusinessWeek magazine and the Bloomberg TV station, as well as several radio stations—along with its flagship Bloomberg Terminal. All of this makes it a sure-fire winner.

As an investor, you may be interested in getting in on the action. But you can’t. That’s because it’s impossible to buy stock in Bloomberg, which is a privately owned company. This article highlights a brief history of the company, how it makes its money, and why it remains privately held.

Key Takeaways

• Bloomberg was founded by Michael Bloomberg in 1981.
• The company’s Bloomberg Terminals are what bring in the majority of its $10 billion of annual revenue.
• Along with financial technology, Bloomberg is also a media company with broadcast, print, and digital assets.
• As a private company, Bloomberg’s ownership is limited, it isn’t under the scrutiny of financial regulators, and it doesn’t have to report its financials to the public.

History of Bloomberg

In 1981, Michael Bloomberg received a $10 million check as severance when he was let go with Wall Street firm Phibro Corporation, which was being taken over by Salomon Brothers. Bloomberg used this money to team up with Thomas Secunda, Duncan MacMillan, and Charles Zegar to create a new company called Innovative Market Solutions. The company was meant to bring more transparency to the financial system.

IMS developed the Bloomberg Terminal, which it first called the Market Master, to track financial market information and calculate the price of financial instruments. It caught the eye of Merrill Lynch, which invested $30 million in the company in 1984. Renamed Bloomberg LP in 1986, about 10,000 of the company’s terminals were installed on the desks of financial professionals by 1991. The terminals are now part of the professional services division, which brings in the majority of the company’s estimated $10 billion of annual revenue.

Bloomberg LP bought back one-third of Merrill Lynch’s stake in 1996 for $200 million. Bloomberg, which manages Michael Bloomberg’s assets, bought Merrill’s remaining stake for a reported $4.43 billion in 2008.

Michael Bloomberg holds an 88% stake in the company. He served as its chief executive officer (CEO) until he stepped aside to run for mayor of New York City in 2001, and he returned to that position in early 2015 at age 73.

More Than Just Bloomberg Terminals

According to the company’s website, there are 350,000 terminals in use in the global financial industry. This service is provided by Bloomberg Professional Services, which charges users over $2,000 per month per terminal. But there’s more to Bloomberg than simply financial technology.

The company also has numerous other subscription services, including Bloomberg Law, which competes with LexisNexis, and Bloomberg Government, where users can get detailed updates on congressional and regulatory changes and schedules. The latter publishes updated information almost instantaneously.

Aside from the terminals, Bloomberg is probably best known as a media company. It owns and operates television and radio broadcasts, and also has a series of print and digital publications that report financial, lifestyle, and sports news.

Bloomberg TV

Bloomberg Television is a 24-hour cable news network established in 1994. Initially, it was only available on DirecTV, but it soon moved to cable television. Although the network runs more live programming than either CNBC or Fox Business News, it continues to struggle for viewers.

The network went through its largest-ever round of layoffs in September 2015, after which a number of producers resigned. Bloomberg’s radio station is available in four markets—New York, London, Hong Kong, and San Francisco.

Magazines

The company purchased BusinessWeek magazine from McGraw Hill Financial in 2009 and renamed it Bloomberg Businessweek. The original magazine was established shortly before the 1929 stock market collapse.

Originally aimed at business people, it was later reoriented toward consumers. The magazine hit a high of six million readers in the mid-1970s, but it has faded since then. It’s best known for its annual ranking of MBA programs.

Bloomberg Markets magazine ceased publication as a standalone news publication in late 2015. The magazine had long been sent to all terminal subscribers, but the company decided that it outlived its usefulness.

The company continues to provide financial and other news through its website, bloomberg.com. Readers can also get live, real-time data on stocks and other securities.

Competitors 

Bloomberg’s closest competitor is Thomson Reuters Corporation (TRI), which also leases proprietary financial information terminals. This company, though, is publicly traded. It reported revenue of $6.8 billion for the 2023 fiscal year.

However, the company’s Thomson Reuters Eikon platform does not offer anything comparable to Bloomberg’s securities analysis, pricing, and trading services.

The next-closest competitor is Morningstar, a publicly traded company that also offers subscription-based data, research, and proprietary pricing tools but not trading capabilities. Both companies offer detailed investment advice, but only Morningstar provides credit ratings and an investment consulting component. Both have their own publications, but Morningstar does not have a television or radio station.

Important

You can invest in Bloomberg-like companies that provide similar services such as Thomson Reuters and Morningstar.

So Why Does Bloomberg Remain Private?

Going public has many advantages. One of the most notable benefits is that companies can raise capital to fund research, expansion, and other growth strategies. But companies like Bloomberg often remain private for a number of reasons.

For instance, remaining private limits ownership. If Bloomberg went public and offered shares on the open market, that would dilute ownership, spreading it across multiple shareholders. This also means the company would have to answer to these parties about the direction of the company.

Going public also brings more scrutiny to the company by regulators, including the Securities and Exchange Commission (SEC). By remaining private, the company doesn’t answer to another party, giving the owners full discretion on how the company is run.

And by remaining private, Bloomberg doesn’t have to report its financials to the public. It also isn’t required to complete the forms and filings required by public companies such as annual reports.

What Is the Main Business of Bloomberg?

Bloomberg’s main business is providing financial and analytics through its main product, the Bloomberg Terminal. This platform provides news, data, tools, analytics, and more, all in real-time, and is used by financial and business professionals across the globe. Bloomberg also has a media division, including a television channel and magazine.

Who Owns Bloomberg?

Bloomberg is a privately-held company majority owned by its co-founder, Michael Bloomberg. He owns approximately 88% of the company.

Who Are Bloomberg’s Biggest Clients?

Bloomberg has a large client portfolio, with almost every major financial institution using its Bloomberg Terminal. These institutions include banks, investment funds, brokers, asset management firms, and more. Some examples of its clients are Bank of America, JPMorgan Chase, Citigroup, and Goldman Sachs.

The Bottom Line

If you’re an investor who is intrigued by how diverse Bloomberg seems and how much money it makes, and would like to invest in a similar public entity, you may look to financial services firms that provide news, data, and analytics, such as Thomson Reuters or Morningstar.

Fact checked by Kirsten Rohrs Schmitt
Reviewed by Margaret James

Billionaires play an outsized role in shaping the global economy, politics, and philanthropy. Forbes puts the number of billionaires in the world at 2,781 in 2024. The wealthiest among them is Elon Musk; CEO of Tesla and SpaceX.

The individuals on this list belong to an even more exclusive club and wield still more power. Many are founders of technology giants, with much of their wealth still invested in the companies they started.

These billionaires can, however, still borrow against that wealth to avoid selling stock, deferring (or eliminating for heirs) taxes on unrealized capital gains in the process. Multi-billionaires can also take advantage of a panoply of tax deductions to offset reported income, leaving some on this list paying no income tax in recent years.

With so much of their wealth in publicly traded stocks, the net worth of the richest fluctuates along with the market valuations of the companies they own. Below are the 10 wealthiest people on the planet, according to the Bloomberg Billionaires Index. All figures are current as of Jan. 1, 2025.

Key Takeaways

• Elon Musk, CEO of Tesla, is the richest person in the world with a net worth of $432 billion.
• After Musk is Jeff Bezos, founder of Amazon.
• Other billionaires with some of the largest net worths include LVMH’s Arnault, Microsoft’s Bill Gates, and Oracle’s Larry Ellison.
• Eight of the top 10 billionaires made their fortunes in technology, with Arnault and Berkshire Hathaway’s Warren Buffett being the exceptions.

1. Elon Musk

• Age: 53
• Residence: United States
• Co-founder and CEO: Tesla
• Net Worth: $432 billion
• Tesla Ownership Stake: 13% ($166 billion)
• X Ownership Stake: 79% ($7.79 billion)
• Other Assets: Space Exploration Technologies ($136 billion private asset), The Boring Company ($3.33 billion private asset), Neuralink ($2.07 billion private asset), xAI ($25 billion private asset)

Elon Musk is the richest man in the world. He was born in South Africa and attended a university in Canada before transferring to the University of Pennsylvania, where he earned bachelor’s degrees in physics and economics.

Two days after enrolling in a graduate physics program at Stanford University, Musk deferred attendance to launch Zip2, one of the earliest online navigation services. He reinvested a portion of the proceeds from this startup to create X.com, the online payment system that was sold to eBay (EBAY) and ultimately became PayPal Holdings (PYPL).

In 2004, Musk became a major funder of Tesla Motors (now Tesla), which led to his current position as CEO of the electric vehicle company. In addition to its line of electric automobiles, Tesla produces energy storage devices, automobile accessories, and, through its acquisition of SolarCity in 2016, solar power systems. Musk is also CEO and chief engineer of Space Exploration Technologies (SpaceX), a developer of space launch rockets.

In December 2020, Tesla joined the S&P 500, becoming the largest company added, and in January 2021, Musk became the richest person in the world—a title that has fluctuated alongside the value of Tesla.

In April 2022, Musk began a campaign to take X private, which culminated in a $44 billion buyout. Musk planned to fund the deal with $21 billion of his own capital. In the run-up to the buyout announcement, Musk sold 9.6 million shares of Tesla, valued at roughly $8.5 billion.

In July 2022, Musk decided to back out of the buyout. The company filed a lawsuit against Musk to force the buyout to go through. Musk countersued the company but then reversed course and declared he was willing to buy it after all. The deal officially closed in Oct. 2022, giving him a 79% stake in the company.

2. Jeff Bezos

• Age: 60
• Residence: United States
• Founder and Executive Chair: Amazon (AMZN)
• Net Worth: $239 billion
• Amazon Ownership Stake: 8.8% ($200 billion)
• Other Assets: Blue Origin ($15 billion private asset), The Washington Post ($250 million private asset), Koru ($500 million private asset), and $23.3 billion in cash

In 1994, Jeff Bezos founded Amazon.com in a garage in Seattle, shortly after he resigned from the hedge fund giant D.E. Shaw. He had originally pitched the idea of an online bookstore to his former boss David E. Shaw, who wasn’t interested.

Though Amazon originally started out selling books, it has since morphed into a one-stop shop for everything under the sun and is expected to overtake Walmart as the world’s largest retailer by 2024. Amazon’s pattern of constant diversification is evident in some of its unexpected expansions, which include acquiring Whole Foods in 2017 and entering the pharmacy business the same year.

Bezos owned as much as 16% of Amazon in 2019 before transferring 4% to his former wife, MacKenzie Scott, as part of their divorce proceedings. In 2020, Amazon’s share price jumped 76% on the heightened demand for online shopping amid the COVID-19 pandemic. On July 5, 2021, Bezos stepped down as CEO of the e-commerce giant, becoming its executive chair.

Bezos originally took Amazon public in 1997 and went on to become the first man since Bill Gates in 1999 to achieve a net worth of more than $100 billion. Bezos’ other projects include aerospace company Blue Origin, The Washington Post (which he purchased in 2013), and the 10,000-year clock—also known as the Long Now.

On July 20, 2021, Bezos, his brother Mark, aviation pioneer Wally Funk, and Dutch student Oliver Daemen completed Blue Origin’s first successful crewed flight, reaching an altitude of more than 66 miles before landing safely. Bezos’ wealth peaked at $213 billion in the same month.

In 2023, he paid $500 million for the superyacht, Koru.

3. Mark Zuckerberg

• Age: 40
• Residence: United States
• CEO and Chair: Meta Platforms (META)
• Net Worth: $207 billion
• Meta Platforms Ownership Stake: 13% ($202 billion)
• Other Assets: $5.58 billion in cash

Mark Zuckerberg first developed Facebook (now Meta) alongside fellow students Eduardo Saverin, Dustin Moskovitz, and Chris Hughes while attending Harvard University in 2004. As Facebook began to be used at other universities, Zuckerberg dropped out of Harvard to focus entirely on his growing business. Today, Zuckerberg is the CEO and chair of Meta.

Facebook is the world’s largest social networking service. As the website is free to use, most of the company’s revenue is generated through advertising.

Meta is also host to several other brands, including photo-sharing app Instagram, which it acquired in 2012; cross-platform mobile messaging service WhatsApp; virtual-reality–headset producer Oculus, both acquired in 2014, and Workplace, its enterprise-connectivity platform.

Zuckerberg and his wife, Priscilla Chan, founded the Chan Zuckerberg Initiative in 2015, with each of them serving as co-CEOs. Their charity seeks to leverage technology to fix societal ills, such as improving the access and quality of education, reforming both the criminal justice system and the U.S. immigration system, improving housing affordability, and eventually eradicating all diseases.

4. Larry Ellison

• Age: 80
• Residence: United States
• Co-founder, Chair, and CTO: Oracle (ORCL)
• Net Worth: $192 billion
• Oracle Ownership Stake: 41% ($145 billion)
• Other Assets: Tesla equity ($18.2 billion public asset), $28.3 billion in cash

Larry Ellison was born in New York City to a 19-year-old single mother. After dropping out of the University of Chicago in 1966, Ellison moved to California and worked as a computer programmer. In 1973, he joined the electronics company Ampex, where he met future partners Ed Oates and Bob Miner. Three years later, Ellison moved to Precision Instruments, serving as the company’s vice president of research and development.

In 1977, Ellison founded Software Development Laboratories alongside Oates and Miner. Two years later, the company released Oracle, the first commercial relational database program to use Structured Query Language. The database program proved so popular that SDL changed its name to Oracle Systems Corporation in 1982. Ellison gave up the CEO role at Oracle in 2014 after 37 years. He joined Tesla’s board in Dec. 2018 and stepped down in June 2022.

Oracle is the world’s second-largest software company, providing a wide variety of cloud computing programs as well as Java and Linux code and the Oracle Exadata computing platform. Oracle has acquired numerous large companies over its history, such as Sun Microsystems and Cerner.

Ellison has focused his philanthropy on medical research. In 2016, he gave $200 million to the University of Southern California for a new cancer research center. Ellison backed the Oracle Team USA sailing team, which won the America’s Cup racing series in 2010 and 2013.

5. Bernard Arnault

• Age: 75
• Residence: France
• CEO and Chair: LVMH (LVMUY)
• Net Worth: $176 billion
• LVMH Ownership Stake: 48% ($158 billion)
• Other Assets: $18.7 billion in cash

French national Bernard Arnault is the chair and CEO of LVMH, the world’s largest luxury goods company. LVMH brands include Louis Vuitton, Hennessey, Marc Jacobs, and Sephora.

Most of Arnault’s wealth comes from his massive stake in LVMH. His shares in LVMH are held through entities associated with Financiere Agache; the investment firm that manages his fortune.

An engineer by training, Arnault first showed his business acumen while working for his father’s construction firm, Ferret-Savinel, taking charge of the company in 1971. He converted Ferret-Savinel to a real estate company named Férinel Inc. in 1979.

Arnault remained Férinel’s chair for another six years, until he acquired and reorganized luxury goods maker Financière Agache in 1984, eventually selling all its holdings other than Christian Dior and Le Bon Marché. He was invited to invest in LVMH in 1987 and became the majority shareholder, chair of the board, and CEO of the company two years later.

6. Larry Page

• Age: 51
• Residence: United States
• Co-founder and Board Member: Alphabet (GOOG)
• Net Worth: $168 billion
• Alphabet Ownership Stake: 6% ($147.9 billion)
• Other Assets: $20.3 billion in cash

Like several of the tech billionaires on this list, Larry Page embarked on his path to fame and fortune in a college dorm room. While attending Stanford University in 1995, Page and his friend Sergey Brin came up with the idea of improving Internet data extraction. The duo devised a new search engine technology they dubbed Backrub after its ability to assess links to a page.

From there, Page and Brin went on to found Google in 1998, with Page serving as CEO of the company until 2001, and again between 2011 and 2019.

Google is the world’s dominant Internet search engine, accounting for more than 92% of global search requests. In 2006, the company purchased YouTube, the top platform for user-submitted videos.

After acquiring Android in 2005, Google released the Android mobile phone operating system in 2008. Google reorganized in 2015, becoming a subsidiary of Alphabet, a holding company.

Page was among early investors in Planetary Resources, a space exploration and asteroid-mining company. Established in 2009, the company was acquired by blockchain firm ConsenSys in 2018 amid funding problems. He has also shown an interest in flying car companies, investing in both Kitty Hawk and Opener, although Kitty Hawk ceased operations in 2022.

7. Bill Gates

• Age: 69
• Residence: United States
• Co-founder: Microsoft (MSFT)
• Net Worth: $159 billion
• Microsoft Ownership Stake: 1% ($27.3 billion)
• Other Assets: Billions in multiple other companies held through a holding company, Cascade Investment, and $79.6 billion in cash

While attending Harvard University in 1975, Bill Gates went to work alongside his childhood friend Paul Allen to develop new software for the original microcomputers. Following this project’s success, Gates dropped out of Harvard during his junior year and founded Microsoft with Allen.

The largest software company in the world, Microsoft, also produces a line of personal computers, provides email services through its exchange server, and sells video game systems and associated game devices. It has recently invested heavily in cloud services.

Gates shifted from the company’s CEO to the role of board chair in 2008. He joined Berkshire Hathaway’s board in 2004. He stepped down from both boards on March 13, 2020.

The bulk of Bill Gates’s wealth is in Cascade Investment LLC, a privately held investment vehicle that owns a variety of stocks.

8. Sergey Brin

• Age: 51
• Residence: United States
• Co-founder and Board Member: Alphabet (GOOG)
• Net Worth: $158 billion
• Alphabet Ownership Stake: 6% ($137.8 billion)
• Other Assets: $20.4 billion in cash

Sergey Brin was born in Moscow, Russia, moving to the U.S. with his family when he was six in 1979. After co-founding Google with Larry Page in 1998, Brin became Google’s president of technology when Eric Schmidt took over as CEO in 2001. He held the same post at the Alphabet holding company after it was established in 2015, stepping down in 2019 when Sundar Pichai took over as CEO.

In addition to its dominant internet search engine, Google offers a suite of online tools and services known as Google Workspace, which includes Gmail, Google Drive, Google Calendar, Google Meet, Google Chat, Google Docs, Google Sheets, Google Slides, and more. Google also offers a variety of electronic devices, including Pixel smartphones, computers, and tablets, Nest smart home devices, and the Stadia gaming platform.

Brin has donated millions of dollars to Parkinson’s disease research, partnering with The Michael J. Fox Foundation.

9. Steve Ballmer

• Age: 68
• Residence: United States
• Owner: Los Angeles Clippers
• Net Worth: $147 billion
• Microsoft Ownership Stake: 4% ($135 billion)
• Other Assets: Los Angeles Clippers ($4.56 billion private asset), The Forum ($400 million private asset), Intuit Dome ($2 billion private asset), $4.98 billion in cash

Steve Ballmer joined Microsoft in 1980 after Bill Gates convinced him to drop out of Stanford University’s MBA program. He was Microsoft’s 30th employee. Ballmer went on to succeed Gates as Microsoft CEO in 2000. He held the position until stepping down in 2014. Ballmer oversaw Microsoft’s 2011 purchase of Skype for $8.5 billion.

Ballmer owns an estimated 4% of Microsoft, making him the software giant’s largest individual shareholder. In 2014, shortly after stepping down as Microsoft CEO, Ballmer purchased the Los Angeles Clippers basketball team for $2 billion.

Ballmer lived in the same dorm and on the same floor as Bill Gates when the two attended Harvard University. Their brotherly relationship became strained when Ballmer started pushing the tech company into hardware, such as the Surface tablet and the Windows mobile phone, during his tenure as CEO.

10. Warren Buffett

• Age: 94
• Residence: United States
• CEO: Berkshire Hathaway (BRK.A)
• Net Worth: $142 billion
• Berkshire Hathaway Ownership Stake: 15% ($141 billion)
• Other Assets: $1.58 billion in cash

The most famous living value investor, Warren Buffett filed his first tax return in 1944 at age 14, declaring earnings from his boyhood paper route. He first bought shares in a textile company called Berkshire Hathaway in 1962, becoming the majority shareholder by 1965. Buffett expanded the company’s holdings to insurance and other investments in 1967.

Widely known as the Oracle of Omaha, Buffett is a buy-and-hold investor who built his fortune by acquiring undervalued companies. More recently, Berkshire Hathaway has invested in large, well-known companies. Its portfolio of wholly owned subsidiaries includes interests in insurance, energy distribution, and railroads as well as consumer products.

Buffett is a notable Bitcoin skeptic.

Buffett has dedicated much of his wealth to philanthropy. Between 2006 and 2020, he gave away $41 billion—mostly to the Bill & Melinda Gates Foundation and his children’s charities. Buffett launched the Giving Pledge alongside Bill Gates in 2010.

Now 93 years old, Buffett still serves as CEO, but in 2021 he stated that his likely successor would be Gregory Abel, head of Berkshire’s non-insurance operations.

Who Are the Top 10 Richest People in the World?

The top 10 richest people in the world as of Jan. 1, 2025, are:

1. Elon Musk
2. Jeff Bezos
3. Mark Zuckerberg
4. Larry Ellison
5. Bernard Arnault
6. Larry Page
7. Bill Gates
8. Sergey Brin
9. Steve Ballmer
10. Warren Buffett

Who Is the World’s Richest Man in 2024?

As of Jan. 1, 2025, the world’s richest man is Elon Musk, the CEO of Tesla and SpaceX. He has a net worth of $432 billion.

Who Is the Richest Woman in the World?

The richest woman in the world is Alice Walton. As of Jan. 1, 2025, her net worth is $109 billion. Her net worth is derived from her holdings in Walmart.

The Bottom Line

If you want to get a little closer to making the richest billionaires rankings, you might need to become a technological innovator or luxury retail mastermind. Or you could keep it simple and focus on value investing.

It also wouldn’t hurt to have been born into wealth; however, the greatest fortunes on this list started as good ideas that people with creativity, drive, and connections used to build some of the world’s largest companies.

Reviewed by Gordon Scott

Channels provide a simple and reliable way for traders to define their entry and exit points within an equity. Although the basic channel-trading rules provide traders with a good idea of where the price is going within the channel, they leave little insight into where breakouts might occur. Identifying patterns known as Wolfe Waves and Gartleys, however, can help predict these breakouts in terms of both their timing and scope (their proportion to the established channel).

This article will take an in-depth look at the channeling techniques centered on these patterns and how they can be applied to help you profit.

Key Takeaways

• Identifying patterns known as Wolfe Waves and Gartleys can help traders predict breakouts in terms of both their timing and scope (their proportion to the established channel).
• The Wolfe Wave’s basic shape shows a fight for balance, or equilibrium, between supply and demand.
• The Gartley trading pattern consists of a single large impulse wave followed by two small pullback impulse waves.

Wolfe Waves

The Wolfe Wave is a natural pattern found in every market. Its basic shape shows a fight for balance, or equilibrium, between supply and demand. This naturally occurring pattern was not invented but rather discovered as a means of predicting levels of supply and demand.

These patterns are very versatile in terms of time, but they are specific in terms of scope. For instance, Wolfe Waves occur in a wide range of time frames, over minutes or even as long as weeks or months, depending on the channel. On the other hand, the scope can be predicted with amazing accuracy. For this reason, when correctly exploited, Wolfe Waves can be extremely effective.

The overriding factor in identifying the Wolfe Wave pattern is symmetry. As shown below, the most accurate patterns exist where, between 1-3-5, there are equal timing intervals between wave cycles.

Here are some key points to remember for identifying Wolfe Waves:

• Waves 3-4 must stay within the channel created by waves 1-2.
• Waves 1-2 equal waves 3-4 (showing symmetry).
• Wave 4 revisits the channel of points established by waves 1-2.
• There should be regular timing intervals between waves.
• Waves 3 and 5 are usually 127% or 162% (Fibonacci) extensions of the previous channel point.

The pattern can be found in:

• Rising channels in an uptrend
• Falling channels in a downtrend
• Level channels during consolidation periods

Notice that the point at wave 5 shown on the diagrams above is a move slightly above or below the channel created by waves 1-2 and 3-4. This move is usually a false price breakout or channel breakdown, and it is the best place to enter a stock long or short. The “false” action at wave 5 occurs most of the time in the pattern but isn’t an absolutely necessary criterion. The point at wave 6 is the target level following from point 5 and is the most profitable part of the Wolfe Wave channel pattern. The target price (point 6) is found by connecting points 1 and 4.

Below is an example of the pattern at work. Remember, wave 5 is an opportunity to take action with a short or long position, while the point at wave 6 is the target price.

It is also important to note that Wolfe Waves, along with most pattern trading strategies, are highly subjective. The key to profiting is accurately identifying and exploiting these trends in real time, which can be more difficult than it sounds. As a result, it is wise to paper trade this technique—as is any new technique you are learning—before going live. And remember to use stop losses to limit your losses.

The Gartley

The Gartley trading pattern was created by H.M. Gartley, who first illustrated it in his 1935 book “Profits in the Stock Market.” The setup consists of a single large impulse wave followed by two small pullback impulse waves. The diagrams below show examples of the ideal setup, both bullish and bearish. In the bullish example, XA represents the first large impulse with a price reversal at A. Following Fibonacci ratios, retracement AB should be 61.8% of the price segment A minus X. This percentage is shown by the segment XB.

At point B, the price again makes a smaller impulse opposite to that of A. Ideally, the retracement BC should be between 61.8% and 78.6% of the AB price range, regardless of the length of the lines. This percentage is shown by segment AC. At C, the price again makes a reversal impulse opposite to that of B. In this pattern, again as stated by Fibonacci ratios, the retracement CD should be between 127% and 161.8% of the range BC, and this proportion is shown along the line BD.

Price D is the optimal point for buying or selling. At entry D, the target retracement to a higher price is initially 61.8% of the range of segment CD. The movement from point D to its next point is extremely profitable. Moves from point D are very quick and powerful, and they follow this model accurately 60% or more of the time.

Here are the key points to remember for Gartleys:

• Ideally, AB equals CD in time length.
• Point D is a 62%–72% pullback from XA.
• XD should ideally be 78.6% of the segment range XA.
• Ideally, CD equals AB.
• Take action at point D.

The condition in which these patterns can be found depends on whether they are bullish or bearish:

• Bullish Gartleys occur in uptrends.
• Bearish Gartleys occur in downtrends.

The figure below demonstrates the bullish Gartley at work.

The figure below demonstrates the bearish Gartley.

What Is a Wolfe Wave?

A Wolfe Wave is a chart pattern composed of five wave patterns in price that imply an underlying equilibrium price. Investors who use this system time their trades based upon the resistance and support lines indicated by the pattern.

What Is a Gartley Trading Pattern?

A Gartley trading pattern is a harmonic chart pattern, based on Fibonacci numbers and ratios, that helps traders identify reaction highs and lows. Many technical analysts use the Gartley pattern in conjunction with other chart patterns or technical indicators.

What Is a Channel?

A channel is a trading range observed between support and resistance levels on a price chart. It is a chart pattern that graphically depicts the peaks and troughs of a security’s price over a specific period of time.

The Bottom Line 

Both of these channeling techniques provide traders with a reliable way to locate breakout points and determine their scope. When using these patterns in conjunction with basic channeling rules, traders have access to a reliable and extremely versatile trading system to use in any market conditions.

Reviewed by Khadija Khartit

As a shareholder, you are entitled to vote by proxy on the big issues that impact a company’s financials even if you can’t attend the meeting in person.

During proxy season at the beginning of each year, in advance of the annual general meeting (AGM) of a company or mutual fund, shareholders will receive a package in the mail containing a variety of documents that report financial data and operations results and announce important issues—such as proposals for changes to the company’s share structure or mergers and acquisitions.

These are all matters that shareholders or unitholders, the true owners of the company or mutual fund, will vote on at the general meeting. If, however, shareholders are not able to attend an annual (or special) meeting, they can vote on proposals by means of a proxy, one of the documents included in the pre-meeting mailing package.

Key Takeaways

• A proxy vote is a ballot cast by one person or firm on behalf of a shareholder of a corporation who may not be able to attend a shareholder meeting, or who otherwise desires not to vote on an issue.
• Prior to a company’s annual meeting, eligible shareholders may receive voting and proxy information in advance of their shareholder vote.
• Rather than physically attending the shareholder meeting, investors may elect someone else—such as a member of the company’s management team—to vote in their place.

The Purpose of Proxy Voting

Shareholder voting is the primary means by which shareholders can influence the company’s or mutual fund’s operations, its corporate governance, and even activities of social responsibility that may fall outside of financial considerations. It is therefore very important for shareholders to participate in the voting and make their decisions based on a full understanding of the information and legal documentation presented to them.

At shareholder meetings, investors with common shares (or mutual fund units) typically receive one vote per share (or unit), unless they own shares carrying additional voting provisions. The votes of shareholders who are absent from a meeting and have not used a proxy card bearing their signature are considered to have abstained—they count neither for nor against any proposal tabled at the meeting.

But proxy voting allows shareholders to vote when they can’t attend a shareholder meeting, so investors are quite literally able to own and vote on equities in companies and mutual funds that might be located and registered clear across the globe.

In the internet age, investors can not only buy and sell stocks online but also vote their proxy statements. The entire documentation delivery process can be electronically automated. Official documentation is delivered to shareholders in electronic form, and then they log onto the system with a control number or personal identification number and vote for or against the resolutions presented.

Proxy Voting Guidelines

The internet also greatly assists shareholders in researching their decisions. Numerous institutional investors now post their voting decisions online prior to the meeting date, giving individual investors a chance to see where the large institutional shareholders stand on issues. These same institutions may also provide extensive explanations of their decisions by posting their “proxy voting guidelines.” For example, institutions may cast their votes on criteria of long-term value, corporate accountability, responsibility, sustainability, and so on.

The most proactive of institutional investors play a sort of champion role in keeping directors accountable for the resolutions that are introduced at important meetings. Not only will the institution establish its model proxy voting guidelines, but if a decision is initially unclear, it will seek additional information from the company itself. For example, an institution might contact management directly to discuss a specific proposal, suggest modifications to the nature of the proposal, or in extreme cases, urge the withdrawal of the proposal in its entirety. Such influence is generally held only by powerful institutional investors, making the institution’s role in the proxy voting process invaluable.

Innovations to the Proxy Voting System

In the wake of much-publicized corporate scandals perpetrated by the management and directors of various publicly traded companies over the years, more consideration has been given to revisions of the proxy voting system—most significantly, allowing shareholders to take an active role in introducing resolutions to the proxy. Today, any shareholder (or group of shareholders) who has owned at least $2,000 or 1% of a company’s stock continuously for at least a year may introduce a proposal. These proposals are often termed “direct proxy access” and focus most prominently on allowing shareholders to nominate director candidates. On one hand, this brings fresh perspectives to the board of directors, but on the other hand, lack of experience (among other factors) could cause shareholders to nominate directors who are truly inappropriate for directorship.

What Is a Proxy?

A proxy is an agent legally authorized to act on behalf of another party. It can also refer to a format that allows an investor to vote without being physically present at a meeting.

What Is a Proxy Vote?

A proxy vote refers to a ballot cast by a single person or firm on behalf of a corporation’s shareholder who may not be able to attend a shareholder meeting, or who may not choose to vote on a particular issue.

What Is a Proxy Statement?

A proxy statement is a document containing the information that the U.S. Securities and Exchange Commission (SEC) requires companies to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual or special stockholder meeting.

What Is Proxy Season?

Proxy season refers to a period each spring in which most large, publicly traded companies schedule their annual meetings and shareholders of these companies have the opportunity to vote on a variety of issues affecting the firm.

The Bottom Line

Proxy voting is often the sole means by which investors can have a say in the business operations and societal activities of their company or mutual fund. Shareholders need not attend an important meeting in person, but they certainly must make the effort to read and understand legal resolutions and use all available resources to make an educated vote based on their best knowledge and information.

Reviewed by Andrew Schmidt

Any financial professional worth the title has to keep up with the latest changes in industry rules and regulations and the latest enhancements in products and planning techniques used in the field. However, they have another incentive: Continuing education coursework is required for licensed or credentialed financial professionals.

Key Takeaways

• Continuing education is required of professionals in financial planning and insurance fields.
• Licensed and credentialed financial professionals are required to keep up to date on new regulations and other changes in the industry.
• Requirements for insurance professionals are different in each state.

Below are the continuing education (CE) requirements for financial professionals. They include the regulatory element, the firm element, state-approved education for insurance professionals, and continuing education for professional designations.

As you’ll see, there are ways to streamline the process so that you won’t find yourself buried under a pile of rules and regulations when your continuing education deadline rolls around.

But first, consider who needs which coursework.

CE Requirements

Each license or designation comes with its own continuing education requirement.

For example, a stockbroker who is also a certified financial planner® (CFP®) must fulfill a number of CE requirements, including:

• A FINRA-approved regulatory element for the Series 6 or Series 7 license
• A FINRA-approved firm element for the Series 6 or 7 license
• State-approved CE for all insurance licenses, such as life and health
• CFP® board-approved CE coursework for the CFP® designation
• Certified Asset Protection Analyst (CAPA)

The Regulatory Element

The FINRA-approved regulatory element is divided into subsections for three groups of professionals:

1. Series 6 licensees
2. Series 7 licensees
3. Those who supervise securities licensees.

All licensees have 120 days to complete this portion of their continuing education requirements after they have been licensed for two years. The requirements will then come due every three years for as long as the licensee maintains FINRA registration.

Important

The coursework and exams are available from online sources.

The regulatory element covers essential rules and regulations, compliance, sales, and communication issues, as well as supervisory topics for registered principals.

The Firm Element

Firm element CE applies to a financial professional considered by FINRA to be a covered person. That includes anyone involved in the sales or trading of securities in virtually any capacity.

Firm element training is created either by the company or obtained from outside sources and is implemented at the broker-dealer level yearly.

The course focuses on changes within the industry from one year to the next. It tends to be most relevant for financial planners because it covers practical topics such as new product training and the latest strategies that may generate new business for planners.

State-Approved Education for Insurance Licensees

There are no uniform federal requirements for insurance continuing education. Each state has its own CE program that agents and brokers must satisfy to maintain licenses to practice in the state. While most states require license renewals every two years, some states require renewals every three or four years.

Each state also sets the minimum number of CE hours that licensees must periodically meet. The norm is 24 hours every two years, although some states require as little as 10 hours or as much as 60 hours.

It is the licensee’s responsibility to know the CE requirements in the state or states where they intend to practice the insurance business. In addition to core courses, licensees may also need to complete general ethics courses.

Continuing Education for Professional Designations

Financial planners who have earned professional credentials such as the CFP®, chartered life underwriter (CLU), or chartered financial consultant (ChFC) designations will have additional continuing education requirements that go beyond what is needed to maintain their licensure.

For example, certified financial planner® practitioners must complete at least 30 hours of continuing education every two years. Two hours of this coursework must be in ethics training, while the remaining 28 hours can be derived from any financial educational topic or coursework that has been approved by the CFP® Board of Standards.

All other professional designations, in addition to those listed above, have separate continuing education requirements as well. Some examples include the CPA, enrolled agent (EA), Life Underwriter Training Council Fellow (LUTCF), and registered health underwriter (RHU).

Complete the Courses Online

Continuing education requirements are much easier to complete than they were in the pre-internet days. There are a number of excellent providers of approved CE materials online, including WebCE.com and AI Insight.

These sites allow you to select and pay for a relevant course and complete the final exam online. Some sites even report the results directly to the required states or designation boards.

Getting Credits Across Multiple Designations

It is important to know that many hours of coursework can be credited toward more than one license or designation.

For example, a great deal of the coursework approved by the CFP® Board of Standards for continuing education also counts toward fulfilling insurance or securities CE requirements. These hours may also count for other designations, such as the CLU or ChFC.

The same course will probably be credited with a different number of hours by different institutions.

For example, consider a CFP® practitioner with a life insurance license, who takes a course on life insurance from an online provider. The licensee may discover that their state of residence grants a particular course six hours of CE credit, while the CFP® Board of Standards considers the course to be worth only four and a half hours of credit toward fulfilling its CE requirements.

To maximize the efficiency of your coursework, find out in advance how many hours of credit each institution will allow for a given course.

Maintaining Qualifications Program (MQP)

FINRA launched the Maintaining Qualifications Program (MQP) in 2022 through Rule 1240(c), Supplementary Material .01 and .02. This rule established a program for eligible individuals who terminate their professional registrations to maintain their qualifications so long as they complete annual CE.

To be eligible for MQP, you must meet the following requirements:

1. have been registered in the terminated registration category for at least one year immediately prior to the termination of that category;
2. elect to participate within two years from the date of termination of the eligible registrations; and
3. complete all CE requirements by their due dates.

You can enroll for MQP through the Financial Professional Gateway (FinPro), the online resources hosted by FINRA that gives financial professionals direct access to tools to maintain their registrations.

How Many Licenses Does FINRA Offer?

There are a total of 32 license exams offered by FINRA. These exams are broken down into the following categories:

• FINRA Representative-Level Exams: Series 6, 7, 22, 57, 79, 82, 86/87, & 99
• FINRA Principal-Level Exams: Series 4, 9/10, 14, 16, 23, 24, 26, 27, 28, & 39)
• Municipal Securities Rulemaking Body (MSRB) Exams: Series 50, 51, 52, 53, & 54
• National Futures Association (NFA) Exams: Series 3, 30, 31, 32, & 34
• North American Securities Administrators Association (NASAA) Exams: Series 63, 65, & 66

How Long Does FINRA’s MQP Allow Professionals To Maintain Their Qualifications?

FINRA’s MQP allows financial professionals to maintain their qualifications for up to 5 years. You must enroll with MQP within two years from the termination date of your registration.

Do Investment Adviser Representatives (IAR) Have CE Requirements?

Investment Adviser Representatives (IAR) are licensed financial professionals who work for investment advisory companies providing financial planning and investment advice to individuals and businesses. Each year, IARs must complete 12 hours of CE to maintain their registration. This includes six hours of Products and Practice and six hours of Ethics and Professional Responsibility.

The Bottom Line

Financial professionals must complete continuing education periodically to maintain an active registration and continue providing financial services. To maintain your registration, it’s important to know what courses you need and where to complete your education. Course requirements vary by state and license, and having multiple designations may require you to complete numerous courses.

Don’t leave your kids unprepared for handling money

Fact checked by Yarilet Perez
Reviewed by Pamela Rodriguez

When kids leave home, they face significant financial responsibilities, from creating a budget to making long-term investment decisions. Unfortunately, many are unprepared for these challenges.

Many kids grow up in households where parents aren’t comfortable talking about money, and financial education isn’t always included in school curriculums. As a result, a 2019 study by Experian found that 76% of Gen Z respondents wished they had taken a financial education class in school. In 2022, the Investopedia Financial Literacy Survey found that only one in four Gen Zers feel confident explaining the stock market to a friend.

The good news is that there are plenty of great money-related resources for kids on the internet and on library bookshelves—you just need to know where to look. Here are some of the best options for teaching your child essential financial skills that will serve them well into adulthood.

Key Takeaways

• Parents today can access a variety of resources to teach kids financial literacy, including podcasts, apps, books, and online classes.
• One unique resource is the Federal Reserve’s educational comic book series, available for free in both print and digital formats.
• Interactive courses, such as virtual investing and entrepreneurship classes from Juni, offer hands-on experience under the guidance of an instructor.

Million Bazillion (Podcast)

For young listeners curious about how the economy works.

How did our money-based economy begin? Why does pizza cost what it does? Why do you see ads when you watch TV or go on YouTube? 

“Million Bazillion” is a kid-friendly podcast created by Greenlight, the financial services company. Hosted by two engaging personalities, the podcast covers the fundamentals of the economy, such as why products cost what they do, how ads work, and the importance of budgeting. Each episode includes trivia, interviews, and celebrity cameos, making it fun while delivering valuable financial lessons.

The podcast also touches on real-world applications of money management. For example, an episode about high schoolers using Greenlight’s app to save for a sports car presents an opportunity to discuss the pros and cons of digital money management. This can also serve as a chance to teach kids about consumerism and advertising.

Money With Mak & G (Podcast)

For kids who enjoy quick financial tips and real-life applications.

“Money With Mak & G” offers a lighthearted approach to financial literacy. Hosted by Ben Jones, a certified public accountant (CPA) and Certified Financial Planner (CFP), along with his 15-year-old twins, Makenna and Grant, the podcast covers topics like the basics of the S&P 500, how to budget for a pet, and the long-term effects of health on finances. Each episode is under 10 minutes, making it perfect for kids with short attention spans.

Sure, the hosts’ lighthearted repartee can get a bit corny at times, but most kids will come away with valuable money management skills. And a dad joke or two.

76%

The percentage of Gen Z respondents in a 2019 Experian poll who said yes when asked if they wished that they had had a financial education class in school.

Savings Spree (App) 

For younger kids, ages 4-10, to learn the basics of money management.

Available on Apple devices, Savings Spree is an interactive app designed to teach young children the importance of saving, investing, and giving. The app’s engaging gameplay involves saving for short-term purchases, investing for long-term goals, and donating a portion of savings to charity. It costs $5.99 to download but offers a fun and educational way for kids to learn about money.

The Everything Kids’ Money Book: Earn It, Save It, and Watch It Grow! (Book)

For children who prefer reading to listening.

Is your son or daughter more of a reader than a podcast listener? “The Everything Kids’ Money Book” by Brette Sember is a great way to help them learn the basics of the economy and how to become more responsible with their money.  

An excellent resource for kids ages 7 to 12, it covers the basics of money, including how paper currency is made, how credit cards work, and how investing in stocks can help build wealth. Sember breaks down complex topics in a way that resonates with younger readers, making financial concepts easy to grasp.

Published by Simon & Schuster, the print edition has a list price of $9.99, and it is also available as an e-book and audiobook.

Federal Reserve Educational Comic Books

For kids who enjoy adventure mixed with learning about economics.

The Federal Reserve Bank of New York offers an engaging series of educational comic books designed to teach kids about money and economic concepts like purchasing power and monetary policy. The comic book series is part of an instructional resource for teachers, but parents can also download digital copies or request printed versions for free.

With colorful illustrations and creative storylines, these comics use imaginative characters, including aliens, to explain financial topics in a way that’s accessible to children.

Hands on Banking (Website) 

For older kids and young adults navigating real-world finances.

The Hands on Banking website, sponsored by Wells Fargo, is designed for older children and young adults preparing to enter the world of finance. The site offers free, easy-to-understand articles and videos on topics like comparing student loan offers, paying taxes, and using credit cards responsibly. It’s an excellent tool for helping your kids transition from high school or college into adulthood. 

Juni (Online Classes) 

For kids interested in hands-on learning about investing and entrepreneurship.

If your children are interested in getting some hands-on experience playing the stock market or running their own business, online classes from Juni might be just the answer. These one-on-one, project-based courses provide a simulated environment where kids aged 9 to 18 learn the basics of investing, entrepreneurship, and building credit.

Courses run a pricey $68.75 per session, billed at $275 a month, although they can take their first class for free. This one may be more than most parents want to pay, but the free class will tell you if it’s worth it.

What Are the Best Mobile Apps for Teaching Kids Financial Skills?

There are innumerable options, many of them very good. For younger children, Savings Spree, Unleash the Loot!, and Kids Finance help kids learn important financial concepts such as delayed gratification. For teens, apps such as Investmate teach the basics of stock trading. And World of Money, for example, has lessons for kids of various age groups. 

Are There Online Classes That Help Kids Learn Money Skills?

Though not exclusively a financial education platform, Juni has project-based courses that teach kids about investing, entrepreneurship, and basic money management. Other virtual education providers with financial literacy offerings (and lower prices) include EVERFI and Outschool. 

What Are the Best Resources for Nurturing Financial Literacy in Kids?

The best resources depend on your child’s age, your goals, and your budget. For self-motivated children, publications such as “The Everything Kids’ Money Book” are a nice introduction to a variety of financial topics. For kids who need a little more interaction, online courses, such as those from Juni or Outschool, can be of help. And if they’re strapped for time, putting on a podcast such as “Million Bazillion” or “Money With Mak & G” can expose them to financial topics, even if you’re in the car. 

The Bottom Line

Financial literacy is an essential life skill, and teaching your kids about money early can have a lasting impact on their financial well-being. With a wide variety of resources available—from books and podcasts to apps and online courses—parents can easily find tools that suit their child’s learning style and interests. By fostering a solid understanding of financial concepts, you’ll help your kids build a strong foundation for managing their finances as adults.