1. Saving v. Investing Where should you put your money?

2. Warm Up Activity What is the difference between saving and investing?

3. Learning Objective Describe the pros and cons of saving Describe methods of saving Describe the pros and cons of investing Describe methods of investing

4. What is “saving?” Saving is putting aside money in a “low-risk” account Have a guaranteed interest rate for a specific rate of time Want to be able to get to the money quickly “Rainy day” emergency fund

5. Investing Putting aside money in a “high-risk” account You can lose and gain a great deal of money in a short period of time More difficult to access the money Meet long terms needs such as retirement or your child’s education

6. Account Quiz See if you can identify these accounts as either “I” for investing or “S” for saving

7. Account Quiz Key 1.S 2.I 3.S 4.S 5.I 6.S 7.I

8. Saving v. Investing Saving Accounts Money Market Accounts US Saving bonds Certificates of Deposit (CD) Stocks Bonds Mutual Funds

9. Summary The more risk, the more money you will make You need to keep your money in the account long term however

10. Exit Activity Which account should you use for buying a car two years from now? Which account should you use for buying Christmas gifts this year? Which account should you use to save for college? Which account should you use to save for retirement?

11. Additional Time: Read and discuss “the Rule of 72” handout