Understand saving and investing options for clients.

 Why do these groups borrow money? ◦ Individuals  To purchase large ticket items such as homes and cars ◦ Businesses  to operate or expand their business purchasing a building, replacing old equipment, or offering new products. ◦ Government  To operate or expand public services transportation, schools, military

 What is saving? ◦ putting away money for future use.  What is investing? ◦ Let your money work for you so you don’t have to  Saving influences economic activity: ◦ makes more money available to be used by individuals, businesses, and the government.

 Interest = Principle x Rate x Time 4 $5,250 $35,000 5%3 Years

5 Total Amount = Principle1+ Rate N (N)(Time) ( ) $40,589.27$35, % 2 (2)(3 Years) ( )

Savings Options Savings Account Certificate of Deposit (CD) Money Market Low % (1 – 2) Better % (2 – 4) High % (4 – 7)

 Stocks  Corporate Bonds  Treasury Bonds  Municipal Bonds  Mutual Funds  Exchange Traded Funds  Real Estate  Commodities  Collectibles