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How money works

Follow one paycheck through the whole system: the bank, the loan, the store, the Fed, the markets, and back. Nine short chapters, a few minutes each, in plain words.

Academy / How money works

Start with chapter 1 →

The loop

1Maya gets paid2The bank3Borrowing4Spending5Prices6The Fed7The ripple8Markets9Back to MayaOne paycheck,all the way around

Maya and Jordan are fictional. Every number in "It really happened" is real and sourced.

  1. 1Maya gets paid4 minWhat is money, and where does it come from?
  2. 2Her paycheck sits in the bank4 minWhat does a bank do with your money?
  3. 3Jordan borrows4 minWhat is interest, and why can a loan grow so fast?
  4. 4Everyone spends4 minHow does spending keep the economy going?
  5. 5Prices start rising4 minWhat is inflation, and how is it measured?
  6. 6The Fed steps in4 minWhy does the Fed raise or cut rates?
  7. 7The ripple4 minHow does one rate reach mortgages, cards and the dollar?
  8. 8Markets react4 minWhy can one economic report move stocks and gold?
  9. 9Back to Maya5 minSaving vs. investing, and the long game

Every underlined word opens its glossary entry. Historical Data shows what really happened, report by report.

We explain how it works. What you do with it is your call. Commentary and education only. Not financial advice.