Savings and Investing Personal Finance Unit 3. Savings Accounts A.Regular Savings Account (Passbook) 1.May be a minimum deposit required to open ($100)

Slides:

Advertisements

Similar presentations

MANAGING MONEY INVESTMENTS & RETIREMENT SENIOR ADVISORY March, 2014.

Advertisements

Making Money…and then having your money make money…and then having that money make money.

Teens 2 lesson ten savings and investing. simple interest calculation Deposit x Interest Rate x Number of Years = Interest Earned example You have $100.

Chapter 9: Sources of Capital

Saving and Investing.  Always pay yourself first!  All little can go a long way  Don’t save your money under your mattress! (and other savings mistakes.

Ch Saving and Investment Planning.  Saving- Storage of money for future use.  Financial experts recommend that people save 10-15% of their income.

Investing 101. Types of Savings tools Savings Account: An interest-bearing account (passbook or statement) at a financial institution. Certificates of.

THE BIG IDEA (MONEY MANAGEMENT)  SS8E5: The student will explain personal money management choices in terms of income, spending, credit, saving, and investing.

 How to Manage Your Cash › Daily Cash Needs  Lunch, movies, gas, or paying for other activities  Carry cash  Go to an ATM  Credit Card  Know pros.

How to make your money grow!.  Savings Account ◦ Completely safe ◦ High liquidity ◦ Low rate of return  Certificate of Deposit (CD) ◦ Completely safe.

Saving and Investing April How to Select a Savings Plan 1. Decide whether to save or invest. 2. Can you withdraw money from this savings plan? 3.

ECONOMICS STUDY GUIDE. Investing – saving in a way that earns income Diversification – distributing funds among a variety of investments to minimize overall.

A certificate issued by a bank depositing money in an account for a specified period of time (often six months, one year, or two years); a penalty is.

Unit 3, Lesson 7 Investment Concepts AOF Financial Services Copyright © 2007–2012 National Academy Foundation. All rights reserved.

Consumers, Savers, and Investors.  Anyone who buys goods and services for personal use.

Becoming a Millionaire:

Savings and Investing. Key Terms Saving Investing Deposit Withdrawal Interest Interest rate Account balance Compounding of interest Future value Present.

Lesson 5-2 Savings Accounts

© Thomson/South-WesternSlideCHAPTER 241 BUDGETING, SAVING, AND INVESTING MONEY 24.1Budgeting Money 24.2Saving Money 24.3Investing Money Chapter 24.

YOUR FINANCIAL FUTURE REVIEW. CREDIT & DEBT COSTS OF USING CREDIT  Interest can be costly when the balance is revolved  Additional penalty or fees 

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.

Investing Bonds and Stocks. Setting Investment Goals  Investing presents opportunities for people and businesses to increase their income.  Investing.

Chapter 30 Savings Accounts pp

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

+ Investments. + Learning Objectives Students will know investment options. Students will be able to identify relative risk, return and liquidity of the.

Copyright © 2008 Pearson Education, Inc. Slide 4-1 Unit 4C Savings Plans and Investments.

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

Investments Who wants to be a millionaire?. What kind of an investor are you?  Rate all investment options according to three characteristics:  Safety.

How Does Money Grow? Before You Invest. Interest refers to the amount you earn on the money you put to work by saving or investing. Savings accounts Individual.

Why It’s Important Savings accounts allow you to put money aside and help make your money grow.

Managing Your Cash.

Saving and Investing. Why Save?  Saving : setting aside income for a period of time so that it can be used later  People save for purchases that require.

Pay Yourself First (a little can add up) A little can add up! Save this each week … at % interest … in 10 years you’ll have $7.005%$4, % $9,440.

Chapter 12 Savings.

Chapter 6 Saving and Investing. Section 6-1: Why Save?  Deciding to save  People save for purchases that require more funds than available, for emergencies,

1 Investing  Making money with money  Investing = Saving  It involves risk—you can lose your $$

Ch. 11: Financial Markets. What to do with money: Make a list of as many places you can think of that you could invest money...

Saving and investing strategies help individuals achieve …….? Personal financial goals.

Take Charge Saving & Investing. Insuring Deposits  FDIC  Federal Deposit Insurance Corporation  Protects Checking, Savings, MMA, & CDs  Insures money.

SAVING FOR THE FUTURE  Growing Money: Why, Where, and How  Savings Options, Features, and Plans.

Saving and Investing Chapter 6. Deciding to Save Benefits of Saving: (6 months of housing) – Make large purchases without paying interest – Funds for.

Investing. Investing putting your money to work to earn more money putting your money to work to earn more money.

Copyright © 2011 Pearson Education, Inc. Managing Your Money.

Chapter 11 Financial Markets.

Pay Yourself First.

Introduction to Saving. Saving Basics Savings is the portion of current income not spent on consumption. Recommended to have a minimum of 3-6 months salary.

C1 C2 The Center of all Financial Decisions  Check in wherever you are.

UNIT 4: SAVING AND INVESTING 1. Discuss how saving contributes to financial well- being 2. Explain how investing builds wealth and helps meet financial.

Copyright © 2011 Pearson Education, Inc. Managing Your Money.

Bank Accounts. Deposit Account: Deposit Account: An account at a banking institution which allows the account holder to deposit money into or withdraw.

Personal Finance SECTION 5.2. Types of Savings Plans  Regular Savings Accounts  Certificates of Deposit  Money Market Accounts  U.S. Savings Bonds.

Investing. When You’re “Young, Fabulous and Broke” You’re dealing with: College costs, maybe student loans Starting a career and low early wages Needing.

Savings Accounts Chapter 30. Today’s Schedule Yesterday’s Quiz Review Homework Collection No Homework – Enjoy your break Chapter 30 Quiz.

Unit 3 Saving & Investing. A Little Can Add Up Save this each week … at % interest … in 10 years you’ll have $7.005%$4, % $9, % $14,160.

Reasons we save... Emergencies Purchases Wealth building (future)

Chapter 11. – A savings account pays interest, has no maturity date, and allows funds to be withdrawn at any time without penalty.savings account –

LEARN ABOUT THE PROCESSES OF SAVING AND INVESTING YOUR MONEY AND SOUND FINANCIAL PLANING Savings and Investment Planning.

 Explain what it means to budget, and identify reasons to maintain a budget.  Create and maintain a budget that supports personal and financial goals.

Saving and Investing Notes. Saving and Investing Objectives Explain factors that influence the amount of money earned at a financial institution.

How Does Money Grow Over Time? The Stock Market.

CHAPTER 6 NOTES. Statement savings account: savings account where the depositor receives a monthly statement showing all transactions. Money market deposit.

Savings Options, Features and Plans Section 2 Notes Chapter 10 Unit 4: Savings and Investing.

Savings Accounts. What is Savings? It is the money put aside for use in the future. Most experts recommend that you put back 10% of your income in savings.

Savings Options, Features and Plans Section 2 Notes Chapter 10 Unit 4: Saving.

Investments First rule: Pay yourself first through saving. What is compound vs. simple interest? Second rule: As you acquire wealth and income learn to.

Truth in Lending Act requires that lenders use similar methods for calculating the cost of credit and for disclosing credit terms so consumers can tell.

Monday, November 16, 2015 Objective: Students will be able to examine the types of accounts available to consumers from financial institutions and the.

Savings Accounts Chapter 30 8/28/2019.

Presentation transcript:

Savings and Investing Personal Finance Unit 3

Savings Accounts A.Regular Savings Account (Passbook) 1.May be a minimum deposit required to open ($100) 2.Small monthly service charge 3.Lowest interest rates 4.High liquidity (closest account to a checking/demand)

Money Market Accounts 1.Higher interest rate than passbook 2.Minimum balance required to earn higher rate (usually between $1000 and $2500) 3.Fairly liquid (could be up to a one-week wait for your money) 4.Limited number of check (withdrawals) per cycle 5.Fee charged if you fall below the minimum required balance or write more than maximum number of checks allowed

Certificates of Deposits (CDs) 1.Deposit lump sum for a set period of time (90 days-5 years) 2.Withdraw only at maturity date or pay large penalty 3.Higher interest rate that doesn’t change once set (based on the length of deposit time)

Individual Retirements Accounts (IRAs) 1.Special tax deferred accounts (pay the taxes at retirement, based on retirement income amount) 2.Money cannot be used before you turn 59 ½ unless of hardship 3.Penalties apply for early withdrawal

Types of Investments A.STOCK—buying ownership in a corporation by buying shares 1.Exchanges—NASDAQ, NYSE, AMEX 2.Chance of higher rate of return or loss (risk of reward) 3.Most stocks are purchased through a broker and they charge commission when you buy and sell your shares 4.Many online brokerages now exist. Online stock purchase works just like paying a bill online.

Types of Investments B.MUTUAL FUND—pool of money used by an investment company to buy a variety of stocks or bonds 1.Provides for diversification (when one might be losing, another might be gaining) 2.Same risks as stock market 3.Different funds have different goals (growth, income) 4.Different funds have different objectives (entertainment, health care, single foreign country, etc.)

Rule of 72 The Rule of 72 is a process where one can compute when money (or debt) will double at a given interest rate. It’s called the Rule of 72 because at 10%, money will double every 7.2 years. Divide 72 by your interest rate to get the amount of time it will take to double your money. How long will it take your money to double at 12%? 6 years How long will it take your money to double at 6? 12 years

WHAT DOES IT TAKE? Responsibility Discipline (Habit) Plan Delayed Gratification HOW CAN YOU DO IT? Auto Transfer Unexpected Income (bonus, gifts) Spare Change