Why it Matters: Making Saving Decisions

Size: px
Start display at page:

Download "Why it Matters: Making Saving Decisions"

Transcription

1 Why it Matters: Making Saving Decisions Lesson Overview This lesson looks at saving why, how, and when. Students read about why to save, the factors influencing saving, the power of compounding, and the costs and benefits of saving. Then they evaluate several possible savings options (a bank savings account, mutual fund, etc.) to determine which savings option may be best for them now and in other situations. Lesson Introduction Sometimes you have more money than you really want to use for current spending, or you want to make a future purchase that requires more money than you have right now. Saving is simply a way to use your current income for something in the future. You can save for a variety of reasons: for purchasing a new television in a couple of months, a new car next year, college expenses, the down payment on a house, or to support yourself during retirement. Just as there are many reasons to save, there are also many ways to save. The best way to save depends on your future plans, your timeline and your tolerance for risk. Here are some of the key terms about saving: Saving: To keep money for future use; to divert money from current spending to a savings account or another form of investment for future use. Principal: An original amount of money invested or lent (may be in multiple amounts overtime.) Interest: Money paid regularly, at a particular rate, for the use of borrowed money. Rate of Return/Interest Rate: The percentage earned on an investment or savings over some specified period of time.

2 Annual Rate of Return: Income earned on an investment in a year, divided by the amount of the original investment. If you earned $5 dollars on an investment or savings of $100 in one year, your annual rate of return is 5 percent. Compound Interest: Interest that is earned not only on the principal but also on the interest already earned. Financial Risk: The chance of losing money or that the chance that the value of an investment (the principal) will decrease. FDIC: The Federal Deposit Insurance Corporation (FDIC) preserves and promotes public confidence in the U.S. financial system by insuring depositors for at least $250,000 per insured bank; by identifying, monitoring and addressing risks to the deposit insurance funds; and by limiting the effect on the economy and the financial system when a bank or thrift institution fails. [http://www.fdic.gov/about/affaq.html] NOTE: The definitions in this lesson are cited or summarized from the Council for Economic Education s Virtual Economics program. They are consistent with the National Voluntary Content Standards in Economics and the Ohio Academic Content Standards for Social Studies. Lesson Objectives The student will: 1. Identify some reasons for saving. 2. Identify the costs and benefits of saving 3. Calculate the interest earned on savings over a selected period of time. 4. Evaluate several types of savings options. Lesson Materials Article: Why It Matters: Getting Savings Just Right Handout/Visual 1: Why Save? Handout/Visual 2: My Savings Plan Handout/Visual 3: How to Save? Handout/Visual 4: Savings Options

3 Handout/Visual 5: Begin Saving Early The Power of Compounding Handout/Visual 6: Compound Interest Tables Handout/Visual 7: What about Borrowing and Saving at the Same Time? Handout/Visual 8: Costs and Benefits of Savings Options Handout/Visual 9: Savings Scenarios Visual 10: FDIC Sign Compound Interest Calculators BankRate.Com Compound Interest Calculator Smart Money Compound Interest Calculator About.Com Mathematics Compound Interest Calculator Lesson Preparation Make visuals to project or print copies of Handouts 1-8 for each student: Introduction Students should read the Cincinnati Enquirer article, Why It Matters: Getting Savings Just Right, by Dr. Julia Heath Director of the Economics Center at the University of Cincinnati. The point of the article is that saving can be a good choice, but saving has both benefits and costs. Students should be able to summarize the main points of the article. Saving can be good for consumers who want to make big future purchase or be prepared for emergencies. Saving makes more loanable funds available for consumers and businesses to borrow. Saving has a real cost less consumption. When consumers purchase fewer goods and series, it may, in fact, be bad for the overall economy.

4 Like many other economic choices, the level of savings reflects the Goldilocks principle. It shouldn t be too much or too little, it should be just right! Procedures 1. Introduce the lesson by asking students: What can you do with money? [Students will eagerly suggest spend it. Some may suggest saving. Although student may have lots of ideas, there are really only two things you can do with money spend it or save it.] Ask: Why would someone choose to save money? [Again, there will be lots of answers, but they all will be something about using it in the future most likely to spend it.] Summarize the discussion with the statement There are only two things you can do with money spend it to save it. 2. Explain that the decision to save is one that should be made thoughtfully. There are a lot of options and decisions beyond just should I save? Handout or project handout/visual 1, Why Save? After the students read the information, ask them to summarize the important points: Saving can be for short-term, medium-term or long-term goals. Saving can be for planned or unplanned expenses. Saving can be a lot or a little money. Saving can be risky or safe, easy or hard. 3. Using Handout/Visual 2, My Savings Plan, work through the simple math of saving some amount of money over some period of time. [Example: If the person s goal is to save $2,400 over 24 months to purchase a car, he or she must save $100 each month. What will they give up to have an extra $100 per month? It could be anything. How will they be better off? They will have a car.]

5 Summarize by saying that the process of saving for a goal has two real variables: The amount to be saved and the time required. 4. Project or distribute copies of Handout/Visual 3, How to Save? Begin with the three questions: How soon or quickly do I want access to my money? How much interest (return) will I earn on my savings? Is there any possibility that I will lose my money? Define Interest. [Money paid regularly, at a particular rate, for the use of borrowed money.] Clarify the different between interest earned on savings and interest paid for a loan. Although they are essentially the same, the key difference is who pays the interest. Review the key points of the handout. How long do you have to or want to save? How much interest do you want to earn? Do you want to take a risk? Summarize the information by stating: When saving, there is always a trade-off between risk and return. 5. Point out the reference to the FDIC and NCUA in the reading. Explain that this is the Federal Deposit Insurance Corporation. This is an agency, established by the federal government, which provides insurance for deposits in banks, savings and loans, and other financial institutions. Ask students if they have ever seen an FDIC sign on the door of a bank. Even a bank branch in a grocery store will have an FDIC sign prominently displayed.

6 Banks are required to insure their deposits, up to $250,000 per account. If a bank somehow loses its assets, through bad investments, catastrophe, theft, etc., the FDIC will reimburse the depositors. When you go to a bank or credit union, look for one of these signs. Visual 10 can be projected to show the FDIC and NCUA door signs. 6. Using Handout/Visual 4, Saving Options, review the several types of saving options. Each Option is explained briefly. For more details about some savings options, go to: Practical Money Skills for Life Financial Planning Advices Hands on Banking (Wells Fargo Bank) Go to page 44. Family Economics and Financial Education (FEFE)

7 Important Note: Point out that in this sense, even those methods commonly referred to as investments are simply savings. When you purchase a share of stock, it is saving money for some future use. No new real capital is created the economic definition of investment. Investment is usually used when saving is longer term, based on greater expectation of returns and is done with more risk. In a general sense, it is all saving. Ask, what are the important criteria when choosing a savings option? Student should mention: Return/interest rate Risk Transaction Costs Time Convenience 7. Ask students, what it means to compound something. [In this use, it refers to something composed or created by the combination of two or more parts or elements. Referring to savings, it is used with the term compound interest. Compound Interest: Interest that is earned not only on the principal but also on the interest already earned. Explain that one of the benefits of most savings options is that they compound interest. You earn interest on your principal and also on the previously paid interest. Distribute or project Handout/Visual 5, Begin Saving Early The Power of Compounding. Use this handout to explain the concept of compound interest. Handout/Visual 6, Compound Interest Tables, is an example of the power of compounding, comparing two people, one who began saving early and one who waited ten years.

8 Note the information on Handout/Visual 5 about the 10 percent interest rate example used for the compound interest table. 10 percent is used to keep it simple. Summarize: The common advice is Save early and often! 8. Use Handout/Visual 7, Costs and Benefits of Savings Options, to review to common criteria used to compare savings options (tools.) Note that each option (tool) may have certain advantages (benefits) and disadvantages (costs.) Review each criterion defining terms and identifying the examples of savings tools that exemplify each criterion. Bank savings accounts are very safe. Certificates of deposit pay higher interest. Stocks have big potential gains (and potential losses) Government bonds may be tax free. Each option has more or less liquidity. Keeping your cash under your mattress is convenient. Liquidity: The ease with which savings or investments can be turned into cash. 9. Handout/Visual 8, What about Borrowing and Saving at the Same Time? raises the issue of saving and borrowing at the same time a common issue. If appropriate, use this for brief discussion about borrowing and saving.

9 Handout/Visual 8 also provides some helpful suggestions about saving. These are things students can do to learn more about saving on their own or with their families. Conclusion/Assessment Using handout/visual 9, Saving Scenarios, students should offer their advice for each situation. This can be done as a whole class discussion or each scenario can be assigned to individuals or pairs. When suggesting what each individual or family should do, the students should explain why, using the criteria from Handout/Visual 7. Summarize by asking students to suggest which criteria will be more important to them when they begin to save for their futures.

10 Why It Matters: Making Savings Decisions A penny saved is a penny earned. Save your money for a rainy day. You have probably heard many people use these expressions to talk about how important it is to save your money. We even have National Teach Children to Save Day (It was April 24, in case you missed it). With all this attention paid to how much people save, you have probably concluded that saving is a good thing. Well, yes and no. Saving money (as opposed to spending it) can be a good thing. For individuals, saving money allows them to purchase high-priced items sometime in the future. For example, people save money to send their children to college, to make a down payment on a house or a car, or to save for retirement. People also save money for emergencies, so they can fix the car if it needs repair. In each case, money that could have been spent today is, instead, put aside for some future use. In the United States, the savings rate (the percentage of their personal income that people put aside into savings) was 3.4% in April, 2012, down from 3.5% in March. The personal savings rate has been falling since the early 1980 s when it was 12.2 percent in 1982, reaching a low of 0.9 percent in The rate for the United States is much lower than other developed countries. It turns out that personal saving can be a good thing for the economy, too. When people save, it builds up what are called loanable funds. This is the money banks and other financial institutions have available to loan out to businesses that want to invest in the growth of their companies, or start new ones. With the money they have borrowed, businesses can then hire more employees, buy more capital equipment or develop new products. So, the more businesses invest, the more the economy as a whole grows. The more people save, the larger the pool of loanable funds, leading to more business investment and economic growth. If that s the result of personal saving, we should want people to save as much as possible from their incomes, right? Maybe not. Remember that when people save for something they will want in the future, they are giving something up the opportunity to spend their money now. The amount of money that consumers spend on goods and services is the largest portion (about two-thirds) of our country s total spending much greater than what businesses and governments spend. That means that if you and I, and the rest of the country s consumers suddenly started saving our money at a much higher rate than we do now, we would have less money to spend on the goods and services that the economy produces. If consumers are not buying as many of these goods and services, businesses would stop producing them, and people would lose their jobs since the demand fell for the products they produce. Therefore, if individuals started saving more, it could push the economy into a recession in the short-run. The bottom line is that how much people should save like many other economic concepts can best be described by the Goldilocks model. If people save too little, we run the risk of not having enough loanable funds for business investment in the long run. If people save too much, we run the risk of not having enough current spending in the economy in the short run. We need just the right amount of saving enough that there is sufficient demand for current goods and services, and sufficient loanable funds to generate goods and services in the future.

11 Handout/Visual 1 Why Save? You may want to save for a variety of reasons. Either you want to feel a little more secure, you want something big but don t want to borrow, or you may just like the idea that you are accumulating wealth for the future. You may, in fact, be saving some amount of your income for several different reasons and saving in different ways. A saving plan should fit your lifestyle and your short-term and long-term goals. Reasons to Save For very short term saving - a night out next Friday or for a short-term purchase - maybe dropping a few dollars and change in a jar each day will work. For very long-term goals - a home purchase or college tuition - putting your money somewhere will it will grow safely is important. For emergencies - a new water heater or an unexpected medical bill you may want quick access to your savings.

12 Think about your savings goals and be as specific as possible. How much do you want to save? What is your capacity to save? What is your saving time line or saving deadline? How much risk do you want (or can afford) to take?

13 Handout/Visual 2 My Savings Plan 1. My goal for saving is to 2. I want to achieve my goal by this date 3. To achieve my goal, I must save a total of $ 4. To save $ by (date) I must save $ per (day, week, month) 5. I will save $ by (how will you do it?)

14 6. To save and achieve my goal, I will give up 7. If I save and achieve my goal, I will be better off because Do the savings math $ X = $

15 Handout/Visual 3 How to Save? Factors Influencing How You Save Ask yourself these questions: The first question most directly relates to the reason for saving. If you are saving for a relatively short term or for an emergency, you may want an account that will give you easy access to your account, such as a passbook savings account or a money market account. Keeping money in a checking account is another way to save for a very short term. You can get your money very quickly, but possibly at some additional cost. Sometimes, when the goal is years away, it is better to save your money in a way that you will not want to use it for other things and earn a better return on your principle. If you want to earn a higher interest rate, you may be interested in a certificate of deposit (CD). A CD is an account where you promise to keep your money in the account for a specified length of time. Usually, the longer the time you are willing to tie up your money, the higher the interest rate you will receive. CD s can mature in as little as a couple of months to as long as years later. If, for some reason, you want the money from your CD prior to the set time, you will give up some of the interest you earned. Even more gain is possible if you invest in stocks, mutual funds or bonds. You may get more, but there is more risk that you can lose some or all of your money. If you want a simple checking or savings account or a certificate of deposit, choosing the right bank, savings and loan, or credit union is an important decision. They have different types of accounts, different fees, or they may be open different hours. A small bank in your neighborhood may give you more personal service. A large bank with offices in grocery stores or with many ATM machines is very convenient. Credit unions

16 sometimes loan funds at slightly lower interest rates. A key thing to consider is that your account is protected by deposit insurance. Again, look for the FDIC sign. Note: Credit Union savings deposits are insured by the National Credit Union Administration (NCUA), an organization similar to the FDIC. Risky investments can pay much bigger dividends, but with a greater possibility that you may lose money. Traditionally, savings that are safe and gain a guaranteed rate of interest are referred to as just savings. Methods that are riskier and that may gain or lose more are more often called investments. The key is deciding why you are saving and how much you can afford to save.

17 Handout/Visual 4 Savings Options Here are some of the basic savings options. Keep your cash at home in a box, under your mattress, or in a safe. You can get your money quickly whenever you want it. It is probably safe, but you never know. You do not receive interest. Cash and coins maintain their face value, but may lose purchasing power with inflation. Open a passbook savings account at a bank, savings and loan, or credit union. You can get your money whenever the bank or its ATM is open. Your balance is insured by the FDIC or NCUA, so you will not lose your funds. You will earn interest, but not much. Open a checking account that pays interest. You can write a check to make payments. You may have to pay check processing fees. You can earn interest, but you may have to have a minimum balance. Your balance is insured by the FDIC, so you will not lose your funds. Purchase a certificate of deposit (CDs) from a bank, S&L, or credit union. You must commit your funds for some period of time (6 months, a year, 2 years, etc.). Your interest rate will be determined by the time required for the certificate. An early withdrawal will reduce your interest earned and may have a fee. Your balance is insured, so you will not lose your funds. Open a money market account (MMA) with a financial institution. A financial account that pays interest based on current interest rates in the money markets. The interest rate may change daily. They typically have relatively higher interest rates, but require a higher minimum balance to earn that interest rate or to avoid fees. A money market account at a bank will be insured by the FDIC. You may be able to write checks on this account.

18 Purchase shares in a money market mutual fund. A money market mutual fund through a brokerage is similar to a money market account, but it will not be insured by the FDIC. You will be more restricted as to how and when you can withdraw your funds. There may be fees for deposits, maintenance and withdrawals. Purchase shares of corporate stock through a broker. You can purchase shares of stocks through brokers or directly from companies. Typically, there are fees to buy and sell your shares. These transactions may take several days to clear and for you to receive your money. Purchase corporate bonds or government bonds. You can purchase bonds through brokers or directly from companies or governments. Typically, there are fees to buy and sell your bonds. These transactions may take several days to clear and for you to receive your money. Government bonds are often tax free. Bonds will pay a specified interest rate, but may lose some of their asset value. Government bonds keep their face value to maturity. Note: Income from savings and investment is usually taxable at the federal, state, and local levels. Some government bond income is not taxable. Account maintenance fees may be tax-deductible.

19 Handout/Visual 5 Begin Saving Early The Power of Compounding There are real advantages to beginning saving early in life. Your benefit from savings depends upon two things: the amount you save and the interest rate or return that you receive. When interest compounds, interest is paid on interest. IMPORTANT NOTE: The compound interest table below assumes a 10 percent interest rate or rate of return. Few investments, except the most risky, will earn a return of 10 percent. How Does Compound Interest Work? Mary put $1000 in a savings account at 5% interest. After one year, the account balance was $1050. $50 interest was paid to her account. After another year, her balance was $ In the second year, her interest was $50 on the original $1,000 and another $2.50 interest on the $50 interest from the first year. In the next One sure thing is that the earlier you start saving, the more you will accumulate over time. For example, compare the savings plans of Frank and Margaret, who graduated from high school together and both decided to save for their retirement. Frank decided when he was twenty-five years old to save $2,000 each year. Margaret waited until she was thirty-two years old to begin saving $2,000 per year. For simplicity, let s assume that they each receive a 10% interest rate on their account balances, compounded daily. Let s see how their savings plans compare. It pays to begin saving early. As interest is paid on your previous deposits and the accumulated interest, the total grows even more. This is called compound interest. Margaret will not reach Frank s total unless she deposits more each year. Frank, on the other hand, stopped saving after eight years and uses the extra $2,000 for a great vacation each summer. By continuing his saving for more years, Frank will greatly increase his total. Margaret had more money to spend for the first eight years, but will end up far behind.

20 IMPORTANT NOTE: The compound interest table below assumes a 10 percent interest rate or rate of return. Few investments, except the most risky, will earn a return of 10 percent. For this example, 10 percent is used because the math is easier to understand. To determine how much you can expect to gain on your savings over any period of time, go to one of many compound interest rate calculators that can be found online. The three calculators listed below are just examples. BankRate.Com Compound Interest Calculator Smart Money Compound Interest Calculator About.Com Mathematics Compound Interest Calculator

21 Handout/Visual 6 Compound The Benefits of Compound Interest Interest Tables Year Frank s Frank s Margaret s Margaret s Deposits Balance Deposits Balance Handout/Visual 7 1 $2,000 $2, $2,000 $4, $2,000 $7, Costs and Benefits of Savings Options 4 $2,000 $10, $2,000 $13, There are many factors that influence your ability and willingness to save or to use various 6 methods $2,000 to save. Think $17,251 about these factors: $2,000 $21, $2,000 $25, $28,394 $2,000 $2, $31,368 $2,000 $4, $34,652 $2,000 $7, $38,281 $2,000 $10, $42,289 $2,000 $13,616

22 Handout/Visual 7 Costs and Benefits of Saving Capacity: How much of your current income can you save? What do you give-up when you choose not to spend your current income? If you choose to save, your opportunity cost is what you could have purchased with that current income. Risk: Some savings methods are very safe. Saving accounts in banks are insured by an agency of the federal government. When insured, the chance of losing some of your savings is very small. Shares of stock may rapidly gain or lose value on an open market. There are no guarantees. Are you a risk taker? Return: Some savings methods pay interest or dividends, thus, increasing the value of the savings. Stock purchases may greatly increase in value over the years. Bonds will pay a set interest rate. The interest paid on municipal bonds is usually tax-free. Your real gain increases by the amount of the tax savings. Liquidity: Some types of saving allow you very quick access to your money. Others make it more difficult. A bank savings account can be accessed whenever the bank is open or through using an ATM. Stocks and bonds are sometimes difficult to sell unless you are willing to take a loss. Plus, you may have to pay a fee for a transaction. Transaction Costs: Will you have to pay a fee to deposit or to withdraw your funds? Sometimes, you pay for convenience, such as using ATMs, receiving your money more quickly, or using technology. Some banks require minimum balances and may charge a fee if you go under that level or make too many transactions. Convenience: Do you want to use Internet banking services or ATMs? How easy will it be to deposit or withdraw your funds? How many branches or ATMs does your bank have? Can you access your funds if you are travelling?

23 Handout/Visual 8 What About Borrowing and Saving at the Same Time? Many people have savings accounts and also owe large balances on credit cards. Often, a good solution for this problem is to use some of the savings to pay off the balance. If you owe $1000 on a credit card account at 15% interest for one year, you will pay $1,150. If you have $1000 in a savings account for one year with 5% interest, your balance after one year will be approximately $1050. By using the $1,000 to pay the balance of the credit card bill, you will gain $100. Of course, you may want to have some or all of the $1,000 in savings for an emergency. This decision requires you to compare and make some important decisions about your borrowing and saving goals. What can you do next? Visit your bank, savings and loan or credit union. Compare interest rates on savings and checking account charges with other institutions. If you do not have your own account, open one in your own name. Opening a checking account that you may only use a limited number of times will, at least, help to establish an account as part of your credit history. If you do not have a credit card, consider applying for a secured credit card. A secured card is guaranteed by a minimum deposit in your savings or checking account. After several months of successful use of the card and prompt repayment, you may be able to receive a credit card with a larger limit. Review your budget and decide what kind of money is most appropriate to use for each item. Remember that some forms of money provide automatic receipts to prove you made the payment. Getting a receipt is always a good idea. Start saving now for a long-term goal. Find two ways to save a little money each week and regularly put it into your account. Take advantage of compound interest.

24 Handout/Visual 9 Saving Scenarios For each scenario below, suggest what method the person (or the parents) should use to save. Provide a rationale for your suggestion. What characteristic about the person will influence their best savings choice? See Handout/Visual 4. Cash, savings account, checking account, certificate of deposit, money market account, money market mutual fund, corporate stock, corporate or government bonds, 1. Bill is fourteen years old and a high school freshman. He wants to save for his college education. He plans to work during the summers and already has $2,000 he received from his grandparents. 2. Mary and John want to build up an emergency fund to cover any unexpected large expenses medical bills, car repairs, home repairs, unexpected travel, etc. They have a little income left over each month and want to make sure it is available for an emergency. 3. Susan is a single mother. She wants to start savings accounts for her two young children. They are just 2 and 3 years old. She knows there will be things like cars, proms, etc., that they will want when they are older not to mention college. 4. James has a plan to start his own business in two years, after he has learned all about the business by working for someone else. He can save a few hundred dollars each month, but he occasionally makes impulse purchases if he has cash in his pockets. 5. Kate will be able to drive in one year. Her parents told her that if she saves enough for a half of the price, they will loan her the balance to buy a new car. She plans to get a summer job and work a little during the school year. Right now, she has just over $1, Fred wants the newest and best ipod. It will cost almost $300. As soon as he has enough money he wants to buy one. He is willing to go without lunch, dates, concerts, and whatever it takes to save enough. 7. Tom and Margaret are in their early 50s. They are now starting to think about their retirement. They both have modest retirement plans with their employers, but they want to make sure they can do some fun things. Together, they can put about $400 more in savings each month. They started saving last year and now have about $4,000 more than they need each month in their checking account.

25 Visual 10 When you go to a bank, look for this sign: At a credit union, you should see this sign

LESSON 12 ALL SAVINGS CHOICES INVOLVE RISK: GRANDMA S GIFT

LESSON 12 ALL SAVINGS CHOICES INVOLVE RISK: GRANDMA S GIFT LESSON 12 ALL SAVINGS CHOICES INVOLVE RISK: GRANDMA S GIFT INTRODUCTION In this lesson, students learn that all savings choices involve risk. Students evaluate various alternatives for saving money. ECONOMICS

More information

TOP 5 SHORT-TERM INVESTMENTS

TOP 5 SHORT-TERM INVESTMENTS INVESTING: MAKING YOUR DOLLARS WORK FOR YOU TOP 5 SHORT-TERM INVESTMENTS A good financial strategy includes choosing a time frame for your various investments. Long-term investments to finance such projects

More information

Lesson Description. Texas Essential Knowledge and Skills (Target standards) Skills (Prerequisite standards) National Standards (Supporting standards)

Lesson Description. Texas Essential Knowledge and Skills (Target standards) Skills (Prerequisite standards) National Standards (Supporting standards) Lesson Description The students are presented with real life situations in which young people have to make important decisions about their future. Students use an online tool to examine how the cost of

More information

Saving and Investing: Getting Started

Saving and Investing: Getting Started STUDENT MODULE 5.1 SAVING AND INVESTING PAGE 1 Standard 5: The student will analyze the costs and benefits of saving and investing. Saving and Investing: Getting Started But Mom, why can I not have it

More information

VOCABULARY INVESTING Student Worksheet

VOCABULARY INVESTING Student Worksheet Vocabulary Worksheet Page 1 Name Period VOCABULARY INVESTING Student Worksheet PRIMARY VOCABULARY 1. Savings: 2. Investments: 3. Investing: 4. Risk: 5. Return: 6. Liquidity: 7. Stocks: 8. Bonds: 9. Mutual

More information

Lesson 8 Save and Invest: The Rise and Fall of Risk and Return

Lesson 8 Save and Invest: The Rise and Fall of Risk and Return Lesson 8 Save and Invest: The Rise and Fall of Risk and Return Lesson Description This lesson begins with a brainstorming session in which students identify the risks involved in playing sports or driving

More information

Control Debt Use Credit Wisely

Control Debt Use Credit Wisely Lesson 10 Control Debt Use Credit Wisely Lesson Description In this lesson, students, through a series of interactive and group activities, will explore the concept of credit and the impact of liabilities

More information

Personal Financial Literacy Vocabulary

Personal Financial Literacy Vocabulary TEACHER GUIDE 5.3 SAVING AND INVESTING PAGE 1 Standard 5: The student will analyze the costs and benefits of saving and investing. Saving and Investing Tools Priority Academic Student Skills Personal Financial

More information

A FAMILY GUIDE TO SAVING FOR COLLEGE

A FAMILY GUIDE TO SAVING FOR COLLEGE START SMART A FAMILY GUIDE TO SAVING FOR COLLEGE SCHOLASTIC and associated logos are trademarks and/or registered trademarks of Scholastic Inc. All rights reserved. WELCOME, PARENT OF A FUTURE COLLEGE

More information

Module 2 Glossary. The general rise of prices over time.

Module 2 Glossary. The general rise of prices over time. Module 2 Glossary Term Inflation Aggressive Investment Risk Definition The general rise of prices over time. High risk. Examples: Stocks, Futures Asset allocation Distribution of investment money. Younger

More information

Lesson 4 Save and Invest: Put It in the Bank

Lesson 4 Save and Invest: Put It in the Bank Lesson 4 Save and Invest: Put It in the Bank Lesson Description Students read a passage on Banking Basics and assess the role of banks as financial intermediaries that bring together savers and borrowers.

More information

Module 2 Lesson 3 Narrative

Module 2 Lesson 3 Narrative Module 2 Lesson 3 Narrative What are savings tools/products/instruments? If you have a specific savings goal in mind and know the amount you need to save and how long you have to save for it, you have

More information

Money Management Tools 1 Budgeting and Savings

Money Management Tools 1 Budgeting and Savings Hands on Banking Money Management Tools 1 Budgeting and Savings The Hands on Banking program is a free public service provided by Wells Fargo. You may also access the program anytime at www.handsonbanking.org

More information

Sav Sa i v n i g n s interest principal determine compound interest list annual percentage yield (APY) direct deposit compare savings club identify

Sav Sa i v n i g n s interest principal determine compound interest list annual percentage yield (APY) direct deposit compare savings club identify Why should I get into the habit of saving money? Chapter 26 Key Terms interest principal compound interest annual percentage yield (APY) direct deposit savings club certificate of deposit (CD) money market

More information

Life Insurance Buyer's Guide

Life Insurance Buyer's Guide Life Insurance Buyer's Guide This guide can help you when you shop for life insurance. It discusses how to: Find a Policy That Meets Your Needs and Fits Your Budget Decide How Much Insurance You Need Make

More information

Video 5 - Get a Financial Plan

Video 5 - Get a Financial Plan Video 5 - Get a Financial Plan VIDEO SUMMARY The video notes that building wealth is hard work, and outlines some key factors that affect people's ability to build wealth. These factors include: paying

More information

Life Insurance Buyer's Guide

Life Insurance Buyer's Guide Life Insurance Buyer's Guide This guide can help you when you shop for life insurance. It discusses how to: Find a Policy That Meets Your Needs and Fits Your Budget Decide How Much Insurance You Need Make

More information

Saving and Investing

Saving and Investing Teacher's Guide $ Lesson Ten Saving and Investing 01/11 saving and investing websites web sites for savings and investing The internet is probably the most extensive and dynamic source of information in

More information

Savings. both for the. example, consider, What are my. We being

Savings. both for the. example, consider, What are my. We being Savings Within the following brochure, you will find informationn related to saving money both for the long and short term. There are many things to consider when constructing a savings plan. For example,

More information

Saving and Investing Tools

Saving and Investing Tools STUDENT MODULE 5.3 SAVING AND INVESTING PAGE 1 Standard 5: The student will analyze the costs and benefits of saving and investing. Saving and Investing Tools Miley and Hanna are both turning 16 this year

More information

Standard 5: The student will analyze the costs and benefits of saving and investing.

Standard 5: The student will analyze the costs and benefits of saving and investing. TEACHER GUIDE 5.4 SAVING AND INVESTING PAGE 1 Standard 5: The student will analyze the costs and benefits of saving and investing. Time is Money Priority Academic Student Skills Personal Financial Literacy

More information

It Is In Your Interest

It Is In Your Interest STUDENT MODULE 7.2 BORROWING MONEY PAGE 1 Standard 7: The student will identify the procedures and analyze the responsibilities of borrowing money. It Is In Your Interest Jason did not understand how it

More information

Guaranteed to Fit Your Life

Guaranteed to Fit Your Life An Overview Guide for Individuals Guaranteed to Fit Your Life The value of whole life insurance throughout your lifetime Insurance Strategies Contents 1 Whole Life Insurance Basics 2 Insurance That Fits

More information

Teacher s Guide. Banks, Credit & the Economy in a fla STEP BY STEP

Teacher s Guide. Banks, Credit & the Economy in a fla STEP BY STEP Teacher s Guide Banks, Credit & the Economy in a fla Time Needed: Two class periods Materials Needed: Student worksheets Projector (optional) Calculators (optional) Copy Instructions: Advance Organizer

More information

Standard 5: The student will analyze the costs and benefits of saving and investing.

Standard 5: The student will analyze the costs and benefits of saving and investing. STUDENT MODULE 5.4 SAVING AND INVESTING PAGE 1 Standard 5: The student will analyze the costs and benefits of saving and investing. Time is Money Aunt May and Uncle Augusto stop at April s house for a

More information

Building Wealth Over Time By John Morton, Scott Niederjohn, and Signè Thomas

Building Wealth Over Time By John Morton, Scott Niederjohn, and Signè Thomas By John Morton, Scott Niederjohn, and Signè Thomas When you start your financial life on your own, building wealth for the future may be the last thing on your mind. After all, it is difficult enough to

More information

LIFE INSURANCE STRATEGY GUIDE

LIFE INSURANCE STRATEGY GUIDE LIFE INSURANCE 101 STRATEGY GUIDE : STRATEGY GUIDE TABLE OF CONTENTS Why You May Need Life Insurance... 5 Shopping for Life Insurance... 5 How Much Life Insurance to Obtain... 6 Calculating Total Funds

More information

Saving and Investing. Being an educated investor will help enable you to become financially sound. Chapters 30 and 31

Saving and Investing. Being an educated investor will help enable you to become financially sound. Chapters 30 and 31 Saving and Investing Being an educated investor will help enable you to become financially sound Chapters 30 and 31 Essential Questions How do you know when to save and when to invest? What are some reasons

More information

Leads to Financial Prosperity

Leads to Financial Prosperity Leads to Financial Prosperity Educating yourself about money The material has covered many financial topics you will encounter throughout your life. This knowledge provides the skills necessary to map

More information

Types of Savings Plans and Investments

Types of Savings Plans and Investments LESSON 12 Types of Savings Plans and Investments LESSON DESCRIPTION AND BACKGROUND The students learn about various types of government-insured savings instruments, noting the advantages and disadvantages

More information

Personal Financial Literacy

Personal Financial Literacy Personal Financial Literacy 7 Unit Overview Being financially literate means taking responsibility for learning how to manage your money. In this unit, you will learn about banking services that can help

More information

What s the Cost of Spending and Saving?

What s the Cost of Spending and Saving? LESSON DESCRIPTION AND BACKGROUND This lesson examines the benefits and opportunity cost of spending and saving. The students learn how compound interest makes savings grow. Compounding provides an incentive

More information

Promoting the Health and Well-Being of Families During Difficult Times. Family Financial Management Planning for the Future

Promoting the Health and Well-Being of Families During Difficult Times. Family Financial Management Planning for the Future Promoting the Health and Well-Being of Families During Difficult Times Family Financial Management Planning for the Future DenYelle Baete Kenyon, Doctoral Student, Lynne M. Borden, Extension Specialist

More information

Chapter Four: Saving and Investing

Chapter Four: Saving and Investing Chapter Four: Saving and Investing Chapter Learning Objectives 1. Compare advantages and disadvantages of saving early versus saving later. 2. Explain the importance of short-term and long-term saving

More information

Synthesis of Financial Planning

Synthesis of Financial Planning P 7A R T Synthesis of Financial Planning 1. Tools for Financial Planning Budgeting (Chapter 2) Planned Savings (Chapter 3) Tax Planning (Chapter 4) 2. Managing Your Liquidity Bank Services (Chapter 5)

More information

Saving to Build Wealth Make Money Work for You

Saving to Build Wealth Make Money Work for You Saving to Build Wealth Make Money Work for You Getting started on saving Building wealth is like building a brick wall. You place one brick on top of another and make sure the wall is solid before you

More information

Getting started as a self investor. Your guide to self investing

Getting started as a self investor. Your guide to self investing Getting started as a self investor Your guide to self investing Been saving for a while? Thinking about investing but unsure where to start? Investing is something many think is worthwhile but never get

More information

How Does Money Grow Over Time?

How Does Money Grow Over Time? How Does Money Grow Over Time? Suggested Grade & Mastery Level High School all levels Suggested Time 45-50 minutes Teacher Background Interest refers to the amount you earn on the money you put to work

More information

Pay Yourself First. Identify Steps You Can Take to Save The following tips will help you to save your flexible income.

Pay Yourself First. Identify Steps You Can Take to Save The following tips will help you to save your flexible income. Pay Yourself First Use this tip sheet to help you in the process of setting and reaching your personal savings goals. This tip sheet covers the following topics: Identifying steps you can take to save

More information

Basic Banking. 2) Money that a bank allows you to borrow and pay back with interest

Basic Banking. 2) Money that a bank allows you to borrow and pay back with interest Basic Banking When choosing a bank, you should look for a bank that offers the type of accounts and services you are looking for. You might look for convenience of branch locations, great customer service,

More information

2010 Visa Inc., All Rights Reserved

2010 Visa Inc., All Rights Reserved 2010 Visa Inc., All Rights Reserved Why Money Skills Are Important Create Independence Set and reach goals Enjoy living responsibly within your means Prepare you for your future after college Developing

More information

A Consumer s Guide To

A Consumer s Guide To A Consumer s Guide To 401(k) Plans NYSUT Member Benefits wants NYSUT members to be the best-informed consumers in the state. This Consumer Guide is one of our contributions towards achieving that goal.

More information

Banking Test - MoneyPower

Banking Test - MoneyPower Banking Test - MoneyPower Multiple Choice Identify the choice that best completes the statement or answers the question. 1. If a person makes a deposit of $10,000 or more into a bank account, the bank

More information

Save and Invest Put It in the Bank

Save and Invest Put It in the Bank Lesson 3 Save and Invest Put It in the Bank Lesson Description In this lesson, students will compare two savings plans: stuffing a mattress with money and using a bank. After identifying the disadvantages

More information

Student Take Home Guide. Money Smart. Pay Yourself First

Student Take Home Guide. Money Smart. Pay Yourself First Student Take Home Guide Money Smart Table of Contents Table of Contents...1 Money Smart...2...3 Worksheet...4 Plan...5 Savings Tips...6 Compound Dividends Exercise...8 Compound Dividends...9 Savings $1

More information

Agenda. 1. Assessing Your Situation A. 3 types of consumers B. Net Worth C. Net Cash Flow

Agenda. 1. Assessing Your Situation A. 3 types of consumers B. Net Worth C. Net Cash Flow 1 Agenda 1. Assessing Your Situation A. 3 types of consumers B. Net Worth C. Net Cash Flow 2. Revolving Credit A. Credit vs. Charge vs. Debit Cards B. Tips on Revolving Credit C. Home Equity Line Credit

More information

Money, Introduction to Finance Test - MoneyPower

Money, Introduction to Finance Test - MoneyPower Money, Introduction to Finance Test - MoneyPower Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Which of the following does the Federal Reserve use to

More information

Bank Products. 3.1 Introduction

Bank Products. 3.1 Introduction Bank Products Bank Products For many people, the first financial institution they deal with, and the one they use most often, is a bank or credit union. That s because banks and credit unions provide a

More information

Lesson Description. Texas Essential Knowledge and Skills (Target standards) Texas Essential Knowledge and Skills (Prerequisite standards)

Lesson Description. Texas Essential Knowledge and Skills (Target standards) Texas Essential Knowledge and Skills (Prerequisite standards) Lesson Description This lesson gives students the opportunity to explore the different methods a consumer can pay for goods and services. Students first identify something they want to purchase. They then

More information

lesson twelve saving and investing overheads

lesson twelve saving and investing overheads lesson twelve saving and investing overheads pay yourself first (a little can add up) example 1: Save this each week At % Interest In 10 years you ll have $7.00 5% $4,720 14.00 5% 9,440 21.00 5% 14,160

More information

Lesson 6: Inheritance and Investing What s Your Story?

Lesson 6: Inheritance and Investing What s Your Story? Lesson 6: Inheritance and Investing What s Your Story? All the materials and information included in this presentation is provided for educational and illustrative purposes only and is presented with the

More information

Types of Savings Plans and Investments

Types of Savings Plans and Investments LESSON 12 Types of Savings Plans and Investments Introduction If you saved $100 under your mattress, in 50 years you d still have $100, right? Well, yes and no. Even though you would still have $100 in

More information

Table of Contents. Money Smart for Adults Curriculum Page 2 of 28

Table of Contents. Money Smart for Adults Curriculum Page 2 of 28 Table of Contents Pre-Test... 4 The Meaning and Benefits of Pay Yourself First... 6 Activity 1: Pay Yourself First Worksheet... 7 Savings Tips... 8 How Your Money Can Grow... 9 Saving Options... 12 How

More information

account statement a record of transactions in an account at a financial institution, usually provided each month

account statement a record of transactions in an account at a financial institution, usually provided each month GLOSSARY GLOSSARY Following are definitions for key words as they are used in the financial life skills resource. They may have different or additional meanings in other contexts. A account an arrangement

More information

Chapter 1 The Financial Assessment

Chapter 1 The Financial Assessment Chapter 1 The Financial Assessment 64 P leasant S treet P hon e: ( 415) 830-52 44 Copyright 2007-2009 Harrison Lazarus Advisors, Inc. All Rights Reserved Page 1 of 15 It doesn t matter where you are in

More information

transfer money by check or electronic payment to a person or organization that you designate as payee

transfer money by check or electronic payment to a person or organization that you designate as payee Bank Products 1. Introduction For many people, the first financial institution they deal with, and the one they use most often, is a bank or credit union. That s because banks and credit unions provide

More information

Opening a Bank Account

Opening a Bank Account Opening a Bank Account Section Objectives A basic component in establishing financial independence is Opening a Bank Account. Banking services are essential tools for managing personal finances and building

More information

lesson twelve saving and investing overheads

lesson twelve saving and investing overheads lesson twelve saving and investing overheads pay yourself first (a little can add up) example 1: Save this each week At % Interest In 10 years you ll have $7.00 5% $4,720 14.00 5% 9,440 21.00 5% 14,160

More information

Using Credit Strategies Wisely in Retirement Planning.

Using Credit Strategies Wisely in Retirement Planning. Using Credit Strategies Wisely in Retirement Planning. Prepared by. Lawrence Katz, Regional Private Banking Manager. Todd Barfield, Regional Private Banking Manager. In this white paper. 1 Meeting capital

More information

What Annuities Can (and Can t) Do for Retirees With proper handling and expectations, annuities are powerful retirement income tools

What Annuities Can (and Can t) Do for Retirees With proper handling and expectations, annuities are powerful retirement income tools What Annuities Can (and Can t) Do for Retirees With proper handling and expectations, annuities are powerful retirement income tools Illustration by Enrico Varrasso A 65-year old American male has a 10%

More information

Building a Business Plan Part B: Getting Money to Start Your Business

Building a Business Plan Part B: Getting Money to Start Your Business Session Eight Building a Business Plan Part B: Getting Money to Start Your Business It is not necessary to do extraordinary things to get extraordinary results. Warren Buffett Overview: One of the great

More information

Part 5: Saving and Investing Money

Part 5: Saving and Investing Money Part 5: Saving and Investing Money CHAPTER 13: Putting Your Money to Work Saving and Investing Let s discuss... $ Basic banking $ Saving money $ Investing money When it comes to saving and investing,

More information

A guide to investing in cash alternatives

A guide to investing in cash alternatives A guide to investing in cash alternatives What you should know before you buy Wells Fargo Advisors wants to help you invest in cash alternative products that are suitable for you based on your investment

More information

Table of Contents. Money Smart for Adults Curriculum Page 2 of 21

Table of Contents. Money Smart for Adults Curriculum Page 2 of 21 Table of Contents Checking In... 3 Pre-Test... 4 Introduction to Banks... 6 Types of Financial Institutions... 6 Opening and Maintaining a Bank Account... 7 Choosing a Bank and a Bank Account Checklist...

More information

PART ONE OVERVIEW OF RETIREMENT SYSTEM RULES

PART ONE OVERVIEW OF RETIREMENT SYSTEM RULES PART ONE OVERVIEW OF RETIREMENT SYSTEM RULES Overview of Retirement System Rules. 9 How Do Pension Plans Work?. 10 Questions You Need to Ask About Retirement System Rules. 11 What Type of Pension Plan

More information

Managing Your Money. a haircut. With $110 to spend, Sandra wrote seven checks totaling $90.

Managing Your Money. a haircut. With $110 to spend, Sandra wrote seven checks totaling $90. Managing Your Money C H A P T E R 6 a haircut. With $110 to spend, Sandra wrote seven checks totaling $90. Unfortunately for Sandra, she made a math error in entering one of her checks into her checkbook

More information

1. Diane invests $500 today in an account earning 7%. How much will it be worth in:

1. Diane invests $500 today in an account earning 7%. How much will it be worth in: SM3-1: Dollars and Sense Purpose: Practice what you have learned about the time value of money by calculating the responses for the following situations. Directions: After dividing into groups of four

More information

At the end of Chapter 10, you will be able to answer the following:

At the end of Chapter 10, you will be able to answer the following: 1 Objectives for Chapter 10 The Circular Flow Model At the end of Chapter 10, you will be able to answer the following: 1. Explain the basic circular flow model. 2. Define "consumption" and "saving" 3.

More information

Mutual Funds 101. What is a Mutual Fund?

Mutual Funds 101. What is a Mutual Fund? Mutual Funds 101 So you re looking to get into the investment game? Great! Mutual funds are a good investment option. But before you invest, make sure to do your research! You would never go to a car dealership,

More information

Shares Mutual funds Structured bonds Bonds Cash money, deposits

Shares Mutual funds Structured bonds Bonds Cash money, deposits FINANCIAL INSTRUMENTS AND RELATED RISKS This description of investment risks is intended for you. The professionals of AB bank Finasta have strived to understandably introduce you the main financial instruments

More information

Debt Management. Handle with Care CONTENT NOTE. Definitions

Debt Management. Handle with Care CONTENT NOTE. Definitions Debt Management Handle with Care CONTENT NOTE When you borrow money, you enter the world of debt. It has rules, players and strategies. One of the best things you can do for yourself is to learn how to

More information

Young Adults Version. Instructor guide. 2003, 2013 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. ECG-714394 VERSION 5.1

Young Adults Version. Instructor guide. 2003, 2013 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. ECG-714394 VERSION 5.1 Young Adults Version Instructor guide 2003, 2013 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. ECG-714394 VERSION 5.1 Welcome to Wells Fargo s Hands on Banking program! This fun, interactive,

More information

TALKING POINTS HIGH SCHOOL STUDENTS PRESENTED BY JEAN CHATZKY AND PASS FROM AMERICAN EXPRESS SM

TALKING POINTS HIGH SCHOOL STUDENTS PRESENTED BY JEAN CHATZKY AND PASS FROM AMERICAN EXPRESS SM INTRODUCTION Give your kids a heads-up that tonight you re going to make some time to talk about money. It won t take all night, but they should finish their homework, tell their friends they re not available,

More information

Saving Money. Grade One. Overview. Prerequisite Skills. Lesson Objectives. Materials List

Saving Money. Grade One. Overview. Prerequisite Skills. Lesson Objectives. Materials List Grade One Saving Money Overview Students share the book A Chair for My Mother, by Vera B. Williams, to learn about counting and saving money. They complete worksheets on coin counting and saving. Prerequisite

More information

Lesson Plans and Handouts from Gregg J. Zogby, Wellington C. Mepham High School

Lesson Plans and Handouts from Gregg J. Zogby, Wellington C. Mepham High School Lesson Plans and Handouts from Gregg J. Zogby, Wellington C. Mepham High School As presented in the W!SE Webinar for Financial Literacy on October 30, 2014 Table of Contents Types of Investments... Pages

More information

Saving to Build Wealth

Saving to Build Wealth MoneyWi$e A Consumer Action-Capital One Financial Education Project Saving to Build Wealth Seminar Lesson Plan & PowerPoint Presentation Notes For more information about the MoneyWi$e project, visit www.money-wise.org.

More information

plain talk about life insurance The right life insurance can have an enormous effect on your life and the lives of those you love.

plain talk about life insurance The right life insurance can have an enormous effect on your life and the lives of those you love. plain talk about life insurance The right life insurance can have an enormous effect on your life and the lives of those you love. Thinking about life insurance? You re not alone. Canadians generally agree

More information

Online LEI Lesson 2. Lesson 2 Savings Accounts and U.S. Savings Bonds LEARNING, EARNING

Online LEI Lesson 2. Lesson 2 Savings Accounts and U.S. Savings Bonds LEARNING, EARNING Online LEI Lesson 2 Lesson 2 Savings Accounts and U.S. Savings Bonds On l i n e L E I 17 2 Savings Accounts and U.S. Savings Bonds LESS 2 SAVINGS ACCOUNTS U. S. SAVINGS BDS Time Required Lesson Description

More information

10 Things You Need to Know About Money PowerPoint Notes

10 Things You Need to Know About Money PowerPoint Notes Slide 4 10. Independence means you pay your own way. P.1 Slide 5 Text: Slide 6 Text: Slide 7 Slide 8 Slide 9 Slide 10 When others help meet your financial obligations, you are not truly independent. Independence

More information

College Loan Debt: Is It Worth It?

College Loan Debt: Is It Worth It? College Loan Debt: Is It Worth It? Lesson Overview In this lesson, students compare the benefits of a college education (which is primarily increased earning capacity) with the costs of borrowing to pay

More information

Lesson 9 Take Control of Debt: Using Credit Wisely

Lesson 9 Take Control of Debt: Using Credit Wisely Lesson 9 Take Control of Debt: Use Credit Wisely Lesson Description In this lesson, students review the balance sheet (Lesson 1) and the budget worksheet (Lesson 2) and consider ways to use these two documents

More information

8TH ANNUAL PARENTS, KIDS & MONEY SURVEY

8TH ANNUAL PARENTS, KIDS & MONEY SURVEY Detailed Results 8TH ANNUAL PARENTS, KIDS & MONEY SURVEY March 2016 Contents Household Finances..3 Household Debt 13 Savings..24 Emergency Fund..27 Retirement Savings..34 Parental Knowledge, Attitudes,

More information

Module 5 - Saving HANDOUT 5-7

Module 5 - Saving HANDOUT 5-7 HANDOUT 5-7 Savings Tools (detailed) 5 Contents High interest savings account This is a type of deposit account. The bank pays you interest. The rate changes with the prime rate set by the bank. This is

More information

Managing Money. Where does your money go? Eight Steps to Better Money Management. Setting Goals

Managing Money. Where does your money go? Eight Steps to Better Money Management. Setting Goals Option 7 Teacher Information Page 1 Where does your money go? Managing Money If you do not keep track of your expenses, you won t whether you are spending your money wisely. When you know where your money

More information

Saving Power = Spending Power

Saving Power = Spending Power Saving Power = Spending Power By Greg Glandon Federal Reserve Bank of Atlanta Lesson Plan of the Year Contest, 2009 Third Place LESSON DESCRIPTION This lesson focuses on the value of saving money and on

More information

PLANNING YOUR FINANCIAL FUTURE

PLANNING YOUR FINANCIAL FUTURE LESSON 21 PLANNING YOUR FINANCIAL FUTURE 379 LESSON 21 PLANNING YOUR FINANCIAL FUTURE LESSON DESCRIPTION This lesson provides students with a review and an opportunity to apply many of the concepts presented

More information

THINGS TO KNOW WHEN SHOPPING FOR STUDENT LOANS BROUGHT TO YOU BY

THINGS TO KNOW WHEN SHOPPING FOR STUDENT LOANS BROUGHT TO YOU BY 10 THINGS TO KNOW WHEN SHOPPING FOR STUDENT LOANS BROUGHT TO YOU BY The College Ave Team WHAT S INSIDE 4 UNDERSTAND HOW LENDING (AND BORROWING) WORKS 5 THERE ARE TWO TYPES OF STUDENT LOANS: FEDERAL AND

More information

u n i t f o u r Savings and Investments: Your Money at Work "It s possible to have your money work for you in two ways..."

u n i t f o u r Savings and Investments: Your Money at Work It s possible to have your money work for you in two ways... Unit Four Savings and Investments: Your Money at Work "It s possible to have your money work for you in two ways..." In Unit 2, we talked a lot about how you earn money working at a job. In this unit,

More information

Long-Term Care: Frequently Asked Questions About Long- Term Care Insurance

Long-Term Care: Frequently Asked Questions About Long- Term Care Insurance FACT SHEET LTC: FAQ s About Long-Term Care Insurance (H-003) p. 1 of 5 Long-Term Care: Frequently Asked Questions About Long- Term Care Insurance Long-Term Care (LTC) insurance only pays for long-term

More information

Dimes to Riches Money Management for Teens in Grades 7-12

Dimes to Riches Money Management for Teens in Grades 7-12 Dimes to Riches Money Management for Teens in Grades 7-12 s e e r t n o row g t n s e o yd e n o M t a! h k t n a w b o n a k t u n By now yo Your parents are & Life is getting busy and you need cash for

More information

How to Bank and Save In Canada

How to Bank and Save In Canada for Newcomers and New Canadians Module 1 How to Bank and Save In Canada Student Workbook Welcome! We made this workshop for newcomers to Canada. Knowing more about how banking works here can help you settle

More information

WITH A ROLLOVER IRA. Retirement Reimagined. Your life may change...your plans for retirement don t have to.

WITH A ROLLOVER IRA. Retirement Reimagined. Your life may change...your plans for retirement don t have to. Retirement Reimagined TAKE CONTROL WITH A ROLLOVER IRA Your life may change......your plans for retirement don t have to. One of the most consistent elements of life is change career changes, family changes,

More information

Making the most of your money. Twenty questions and answers about making financial decisions

Making the most of your money. Twenty questions and answers about making financial decisions Making the most of your money Twenty questions and answers about making financial decisions This Factbook has been compiled by the Commonwealth Secretariat. The main contents of the booklet have been sourced

More information

YOUR FINANCIAL FUTURE

YOUR FINANCIAL FUTURE YOUR FINANCIAL FUTURE December 2014 In This Issue A Net Worth Statement Helps Keep Retirees on Track Your net worth is more than just your income. A net worth statement presents a composite picture "in

More information

lesson six banking services supplemental materials 04/09

lesson six banking services supplemental materials 04/09 lesson six banking services supplemental materials 04/09 banking terms account Money deposited with a financial institution for investment and/or safekeeping purposes. assets Items of monetary value (e.g.,

More information

Invest in your future

Invest in your future Invest in your future Investing, and your Pensions NO BETTER TIME THAN THE PRESENT - Investing, and Your Pension The sooner you start investing, the better off you will be. Taking an early interest in

More information

Understanding investment concepts

Understanding investment concepts Version 4.2 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to. Important information This document has been published

More information

Managing Your Liquidity

Managing Your Liquidity 2P A R T Managing Your Liquidity Chapter 5 Banking and Interest Rates What bank services are most important to you? Which financial institution will provide the best bank services for you? Chapter 6 Managing

More information

Account a service provided by a bank allowing a customer s money to be handled and tracks money coming in and going out of the account.

Account a service provided by a bank allowing a customer s money to be handled and tracks money coming in and going out of the account. Account a service provided by a bank allowing a customer s money to be handled and tracks money coming in and going out of the account. Account fee the amount charged by a financial institution for the

More information

MODULE 1 // SAVE MONEY. START NOW. AMATEUR: AGES 11-14

MODULE 1 // SAVE MONEY. START NOW. AMATEUR: AGES 11-14 MODULE 1 // SAVE MONEY. START NOW. AMATEUR: AGES 11-14 MODULE 1 // FINANCIAL SOCCER PROGRAM Financial Soccer is an educational video game designed to help students learn more about the fundamentals of

More information