1. Savings and Investing

2. 1. What do you dream of achieving in your life? Becoming president? Traveling to Greece? Starting a family? 2. How can you obtain funds more quickly with a savings and investing plan? Now…get an investment profile handout and answer the quiz. Be prepared to discuss in class

3. What You’ll Learn  Section 8.1  Explain how to establish goals for a savings or investment program.  Discuss ways to obtain funds for investing.  Identify the factors that affect your investment choices.  Section 8.2  Identify the main types of savings and investment alternatives.  Explain the steps involved in developing a personal investment plan.  Section 8.3  Describe your role in a personal investment plan.  Identify sources of financial information.

4. Having goals Having discipline Emergency fund: a savings account that you can access quickly to pay for unexpected expense or emergencies (car repair, water heater) Performing financial check-ups

6. In the financial world, safety and risk have specific meanings Safety: chance of losing your money in an investment is fairly small Risk: you cannot be certain about the profit of your investment Speculative investment: a high- risk investment that might earn a large profit in a short time…it could also lose all the money you invest

7. Safe High Risk Can Vary Government Bonds Savings accounts CD’s Treasury bills U.S. Savings Bonds Stocks Corporate Bonds Mutual Funds Real Estate Collectibles such as coins, stamps, and comic books Commodities Options Precious Metals

9. Dividends: distributions of money, stock, or other property that a corporation pays to stockholders 4.Financial market Risk 4.Global Investment Risk

11. Get out your NEFE book Read and complete pages 27-37 ACTIVITES: What do you think?, 3A, 3B, 3-1, 3C, 3D, 3E Homework Finish NEFE pages