Do Now 1)What does it mean to "invest"? 2) Why do you think it is best to start saving at a young age?

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Presentation transcript:

Do Now 1)What does it mean to "invest"? 2) Why do you think it is best to start saving at a young age?

Reminders News Article Analysis due TOMORROW!

9.4- Savings and Investing When you save money at a bank or invest in a company, they pay you for using your funds. This helps your money to grow even when your not working. Make your money work for you, don’t work for you money.

What are the benefits of Savings Accounts? Interest- a fee for the use of your money Types of accounts Standard savings account- requires a small initial deposit and allows you the most access to your money Money Market Account- pays higher interest rate but restricts the use of your money Certificate of Deposit (CD)- offers the highest interest ray. You pay a fee if you withdraw money before a set time

Guided Practice Pros and Cons of each account type

1. Suppose you put $200 in an account that pays simple interest. Once a year the bank will pay you 5% interest on your money. How much interest will you earn in one year? 2. Now, suppose you put that same $200 into an account that pays compound interest. The bank pays you 5% interest on your money every three months. How much interest will you earn in one year now? (Remember, in compound interest, you will earn interest on previously earned interest as well as on the amount you deposited, called the principal.)

Independent Practice 1) Read the information on various savings accounts. 2) Answer the text-dependent questions

Homework News Article Analysis due FRIDAY!

Exit Ticket 1) What is the biggest benefit to saving early in life? 2) What does saving allow you do to?