Finance for Everyone: Debt

McMaster University via Coursera

Go to Course: https://www.coursera.org/learn/finance-debt

Introduction

### Course Review: Finance for Everyone: Debt In today’s fast-paced financial landscape, understanding debt is more critical than ever. Coursera’s course, **Finance for Everyone: Debt**, offers a comprehensive exploration of the multifaceted nature of debt—covering personal, corporate, and government dimensions—while guiding learners to answer the pivotal question: **How much should we borrow?** #### Overview This course dives deep into the enigma of debt, especially pertinent during a time when borrowing costs are historically low, and the temptation to overextend financially beckons. Right from the outset, you’ll be engaged with the complexities surrounding debt, armed with the knowledge to make informed financial decisions. #### What You’ll Learn The course is structured around four insightful weeks, each progressively building on the foundations of debt: 1. **Welcome & Personal Debt:** - The journey begins with an introduction to personal debt management. This week encourages learners to assess their own relationships with debt, understanding how financial literacy and motivation play a role in maintaining control over their financial futures. The concepts introduced here will set the stage for a more profound understanding of debt in subsequent modules. 2. **Corporate Debt:** - Transitioning from personal to corporate contexts, this segment highlights the strategic advantages of corporate debt over equity under certain conditions. Students will explore how businesses leverage debt to maximize their value and what factors come into play, particularly during periods of growth. Discussions in this week encourage critical thinking about how corporate debt could influence personal investment decisions. 3. **Government Debt:** - The course then broadens its scope to governmental borrowing. Learners will engage in discussions about the necessity of some level of government debt for national economic growth while critically examining instances where it becomes excessive or detrimental. This week culminates with a peer review activity on a personal debt case study, fostering collaborative learning and practical application. 4. **Debt Synthesis:** - The final week synthesizes all previous lessons, allowing students to consolidate their knowledge and articulate their takeaways. This reflection encourages deeper insights into how personal experiences, corporate strategies, and government policies intersect within the debt landscape. #### Practical Assignments Engagement with real-world applications is supported through hands-on assignments, particularly the construction of a debt case study that allows learners to personalize their understanding of debt management. By analyzing individual circumstances, students can connect theoretical knowledge with practical implications. #### Recommendations **Who Should Enroll?** - This course is ideal for anyone looking to enhance their financial literacy, from students and young professionals to experienced individuals seeking a sophisticated understanding of debt and its implications. It's particularly relevant for those involved in personal finance, corporate finance, or public policy. **Why Take This Course?** - **Comprehensive Structure:** The well-rounded syllabus ensures that learners gain a complete view of debt from multiple angles. - **Expert Instructors:** The course is helmed by knowledgeable instructors who effectively facilitate discussions and provide insights grounded in current economic realities. - **Peer Learning Environment:** The inclusion of peer review assignments encourages a collaborative approach to understanding debt, fostering a rich learning community. #### Final Thoughts **Finance for Everyone: Debt** is more than just an educational course; it’s a vital tool that equips individuals with the insights needed to navigate the complexities of debt in their lives. By the course's conclusion, participants will not only understand the principles of debt but will also be empowered to apply this knowledge effectively in their personal and professional financial decisions. I wholeheartedly recommend enrolling in this course—it’s an investment in your financial future.

Syllabus

Welcome & Personal Debt

Welcome! This first week will introduce you to a critical question for our time: how much debt is too much debt? We start by demonstrating why using debt has always been and continues to be a great temptation, particularly when borrowing costs are historically low. Then we’ll delve into Personal Debt and how building your financial literacy as well as tapping into your own motivations can help you manage your debt level, instead of it managing you. You will make connections between Debt and concepts in the prior three courses of this Specialization, and start examining what area of debt from your experiences that you would like to address as part of this course’s final assignment.

Corporate Debt

This week we will look at Corporate Debt and how this type of debt has significant advantages over equity under certain conditions. Taking a critical yet realistic lense, we’ll explore how debt favours and benefit firms who use it as financial leverage aimed at increasing a firm’s value, while impressing an understanding of why this is an advantage only during times of growth. We’ll also tap into each other’s thoughts on how this type of debt could influence our own investing decisions

Government Debt

This week we’ll move beyond the personal and corporate to the bigger picture of Government Debt. We’ll collectively understand why a measure of debt is often a requirement to grow national wealth. But, we’ll also discuss how this ‘measure’ of debt has become a ‘monolith’ of debt in many instances around the globe. The key aspect that we’ll work together to uncover is how this impacts you and the people and places surrounding you, and consider how we might plan and react to finding ourselves at an economic turning point in our history. This week will also be the launch of our peer review activity around your debt case study.

Debt Synthesis

Week 4 is the time to synthesize all that we have learned about debt - from our personal experiences, the state of corporations as well as the current level of government debt, and scrutinize and address it in a way that will increase your debt literacy. You will also reexamine your debt case study and share your biggest takeaways from the course, and look ahead to F4E: Capstone!