1. Saving and Investing BBI2O

2. Saving and Investing Consumers can use any money left over from purchasing goods and services toward savings or investing Saving means putting money aside for future use Investing is using savings to earn extra income For most consumers, it is a good idea to combine both savings and investing in their financial plan.

3. Savings Plans A savings plan ensures that a certain amount of money is put aside on a regular basis to reach a financial goal

4. Why People Save People save for many reasons including emergency needs, short and long-term goals, and security and future needs Benefits of Savings Plans: Plans offered by financial institutions can offer – interest – safety – insure against loss

5. Earnings When money is deposited into an account at a financial institution, it is being lent to the institution so that it can also be lent to other borrowers Interest is paid to the account holder for the use of the money Interest is also paid by the person borrowing the money Rate of return is interest expressed as a percent of the original investment. It is also called yield. ($1000 x.05 = $50)

6. Safety Established in 1967, the Canadian Deposit Insurance Corporation (CDIC), an agency of the federal government, protects depositor’s funds to a maximum of $100,000

7. Liquidity Liquidity is the ability to convert an asset or investment into cash quickly and easily There is a wide range of savings plans available to individuals from different institutions

8. Savings Accounts Savings accounts are the safest way to save and earn some interest or return on your money Interest rates and calculation methods vary from one institution to the next, and fluctuate with economic conditions