1. Difference Between Saving & Investing SavingsSavings Short-to-Mid Term needs (< 5 years) Guaranteed Return Low Return Primarily a “parking space” for money Short-to-Mid Term needs (< 5 years) Guaranteed Return Low Return Primarily a “parking space” for money InvestingInvesting Mid-to-Long Term needs (> 5 years) Greater Volatility and No Guarantees Large Potential Return Primarily for meeting long-term financial goals Mid-to-Long Term needs (> 5 years) Greater Volatility and No Guarantees Large Potential Return Primarily for meeting long-term financial goals

2. “I don’t want risk!” “My money is safe in the bank, but I could lose money with investing! Why take the chance? Two hidden risks of not investing The risk that low interest rates from a savings account won’t provide you with enough money The risk of inflation

3. $100.00 saved in your piggy bank in 1987… Because inflation steals your money's value. $0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 198719881989199019911992199319941995199619971998199920002001200220032004200520062007 …is worth only $53.23 in 2007 Why take the risks of investing?

4. Risk vs. Reward

5. The Stock Market: An Introduction

6. Risk vs. Reward

7. Dow Jones Industrial Average 3MDuPontJPMorgan Chase AlcoaExxonMobilMcDonald's Altria GroupGeneral ElectricMerck American ExpressGeneral MotorsMicrosoft American International Group Hewlett-PackardPfizer AT&THome DepotProcter & Gamble BoeingHoneywellUnited Technologies Corporation CaterpillarIntelVerizon Communications CitigroupIBMWal-Mart Coca-ColaJohnson & Johnson Walt Disney