Evaluating Education, Work and Business. Vocabulary:  Goal: something an individual wishes to accomplish in the future  Interest Rate: money paid for.

Slides:

Advertisements

Similar presentations

Simple Interest Math 8. Simple Interest Can be interest gained (earned) or interest paid Interest paid- costs you money * loans * credit cards Interest.

Advertisements

Earning Credit. Compelling Question Have you ever borrowed money from someone and not repaid it? Or has anyone ever borrowed money from you and not repaid.

Simple Interest 7th Grade Math.

Carl Johnson Financial Literacy Jenks High School The Rule of 72.

USING FINANCIAL STATEMENTS TO GUIDE A BUSINESS

Consumer Banking Dollars and Sense. Interest Rates – Rules of Commercial Banks – Interest rates charged for loans higher than Savings Banks and interest.

Warmup Why does the dollar on the left have value, while the one on the right does not?

Financial Literacy Class 2: Net Worth and Banking.

Today’s Targets Evaluate the effect time has on saved money.

Investment, the Capital Market, and the Wealth of Nations

There’s a lot to learn about money! Presented by the San Francisco Federal Reserve Bank in Collaboration with Operation Hope Why is Money Important?

In this Unit We Will: Know the difference between saving and investing Be familiar with the time value of money Be able to compare investment options.

Saving & Investing Achieving Financial Success. What does it mean? Saving  Putting money aside for future use Investing  Using money so that it earns.

4.2 Sources of Finance (where can companies get money?).

5.1 Savings and Investing 5.2 The Rule of 72 Getting Started.

1 Becoming a Millionaire: Saving and Investing. 2 Starting a Savings Plan “Getting rich is not a function of investing a lot of money; it is a result.

Becoming a Millionaire: Savings and Investments. 2 Starting a Savings Plan.

Chapter 4 Study Guide.

 What financial sources are used to securing financing to start/operate a business? ◦ Personal Savings ◦ Bank Financing ◦ SBA Loans ◦ Venture Capital.

Finance 2009 Spring Chapter 4 Discounted Cash Flow Valuation.

Investing 101 Having Your Money Work For YOU. Saving vs. Investing List 2 ways you can save on one post-it and 2 ways you can invest on the other. Stick.

Banking, Saving and Investing Using Money to Make Money.

What is the difference between savings and investments?

Investments SSEPF2: The student will explain that banks and other financial institutions are businesses that channel money from savers to investors c.Give.

Simple Interest.

Lesson 5-8 Simple Interest.

th grade math Using the Interest Formula. Objective To use the simple interest formula to calculate interest and find the total amount earned or.

 Credit  Equity  Credit: the ability to borrow money in return for a promise of future repayment. Future repayment usually includes interest.

Interest (ing) Notes How to Calculate Simple Interest 2/11/10 Pre-Algebra.

Let your money, make you money!! If it was guaranteed that if you invested $100 every month for 40 years (for a total investment of $48,000) that the money.

 Goals:  Explain the relationship between risk and return when investing.  Describe how to evaluate the level of risk you should accept when investing.

NEFE High School Financial Planning Program Unit Three – Investing: Making Money Work for You Unit 3 - Investing: Making Money Work for You.

Money Review Review In groups of 2 get slate board Marker & tissues.

© 2012 Regents of the University of Minnesota. All rights reserved.

6 th – 8 th Grade. Lets Learn to Budget Select a character then decide on lifestyle choices that will help them reach their financial goals. Carl Tonya.

Banking Chapter 5 – Selecting Financial Services & Institutions.

Saving and Investing Making Money Work for You!. What is the difference? Saving – safe, accessible; usually only earns a small amount of interest; good.

Road to Retirement Course. Introduction to Investing “When you’re making money doing what you love, you are already retired.” “Many describe the new retirement.

Budgeting and Financial Planning Why should people make a plan for how to get and spend money? What strategies can be used to do this most effectively?

INVESTMENT OPPORTUNITIES. Risk and Return Higher risk usually means a chance at a higher return. Also means that you could lose more money. Lower risk.

4.2 Sources of Finance (where can companies get money?).

Compound Interest. What is Compound Interest? Interest is money paid for the use of money. It’s generally money that you get for putting your funds in.

UNIT VII – Personal Financial Literacy

PRE-ALGEBRA. Lesson 7-7 Warm-Up PRE-ALGEBRA Simple and Compound Interest (7-7) principal: the amount of money that is invested (put in to earn more)

Simple Interest. Simple Interest – * the amount of money you must pay back for borrowing money from a bank or on a credit card or * the amount of money.

 Credit  Equity  Credit: the ability to borrow money in return for a promise of future repayment. Future repayment usually includes interest.

money you have in a bank either in checking (where you can use the money with an ATM card or by writing a check) or savings (where you earn interest)

Financial Literacy Buying a Car.... Finance Options: Savings – Put a regular amount into a Bank Account each month. Expect to receive around 2.75% interest.

Personal Finance April 17, Money Management  Everyone must make choices about what to do with their income, including you  Income is money earned.

Financial Literacy. Types of Financial Services  Savings Deposit  Payment Services Checking account  Borrowing Short-Term Long-Term.

Georgia Studies Unit 9: Personal Finance Lesson 1: Personal Finance

Compound Interest. Which amount would you rather have in 10 year’s time? Option A- Put £1000 in a box under the bed, and at the end of each year put £100.

Business and Marketing Accounting and Finance Unit VOCABULARY.

The Basics of Investing Stocks, Bonds & Cash Accounts.

 A holding place for money at a bank.  The amount available to spend in an account.

 Capital Spending: money spent by a business for an item that will be used over a long period.  Capital Projects: spending by businesses for items such.

Unit Four Savings & Investments Pages

Page 1 Financial Institutions and Investments. Page 2.

8.01 Review Personal Finance Darren plans to buy a home one day, but currently does not set aside savings for this because he plans to live in an apartment.

Chapter 32 Saving and Investing Introduction to Business Spring 2005.

Chapter 14. Banking  Do Now  What do you think banks will be like in 15 years?

Consumer Economics Credit Credit Investing Investing.

Let your money, make you money!! If it was guaranteed that if you invested $100 every month for 40 years (for a total investment of $48,000) that the money.

Banking, Interest, and Credit

14.4 Figuring out a Net Worth statement

Let your money, make you money!!

Section 7.7 Simple Interest

Presentation transcript:

Evaluating Education, Work and Business

Vocabulary:  Goal: something an individual wishes to accomplish in the future  Interest Rate: money paid for the use of money, expressed as a percentage per unit of time  Investment: something into which one puts money, time, or energy with the hope of gaining a profit or satisfaction, in spite of risks.

Vocabulary (Continued)  Percentage: a given part of a hundred Example 18 out of 100 = 18%  Rate of Return: the return on an investment, expressed as a percentage of the amount invested  Risk: the chance of loss  Rule of 72: formula for finding out how long it will take an investment to double in value.  Sweat Equity: time and effort with no pay put into a business

What is a Percentage?  Find the following percentages: cookies of tires of pennies out of $ slices of pizza out of salted pretzels out of 39

Which is Better?  1. Profits of $250 on an investment of $400 or…$1,500 on an investment of $10,000.  traffic accidents out of 2,000 deliveries or…5 traffic accidents out of 125 deliveries.

Return on Investment (ROI) You invested $5 and earned $15 more than you started with. What is your ROI? Net Profit Investment X 100 = ROI

Risk vs. Return Return or Net Profit: How much money are we making. Rates of Return: Bank Saving Rate, Loan Interest Rate, Return on Investment, etc.

What would you do?  Would you prefer investing in a company where you get your money back at the end of the week or at the end of the month?  Would you prefer investing $100 in a company where you would get $110 at the end of the week or $150 at the end of the month?

Risk vs. Return Interest Rates:  Savings Account  Car Loan  House Loan (Mortgage Rates)  Credit Cards Why are credit card rates higher than car loans? Why are stock return rates generally higher than savings rates? Why are bank loan rates higher than savings rates?

Risk/Return Relationship Lower Risk Higher Return

Rule of 72 Growth RateYears to “Double” 4%18 years 6%12 years 8%9 years 10%7.2 years 12%6 years 72/Interest Rate