Take ChargeSaving & Investing

Why You Should Save Saving

Setting aside income for a period of time so that it can be used later

Reasons people save Major purchases Emergencies Retirement

Limited Withdrawals

Insuring Deposits FDIC

Federal Deposit Insurance Corporation Protects Checking, Savings, MMA, & CDs Insures money up to $250,000

01/01/2011 ~Limit will adjust by the amount of inflation occurred over the previous 5 years

NCUA National Credit Union Association

LIQUIDITY What does it mean for your assets to be

LIQUID? How easily they can be turned into $$$

List the following in order of their Liquidity (most to least): Real Estate, Savings Bonds, Cash,

Checking Accounts, Stock Savings Accounts

LIQUIDITY Cash

Checking AccountsSavings AccountsSavings BondsStockReal Estate

Earning Interest on Savings Interest

Money earned by someone that places money in a Savings Vehicle

2 Types of Interest Simple

Interest earned only on the money you deposited into a savings account (principal)

Compound Interest earned on both the principal & other

interest you previously earned in that account Compounded daily, monthly, quarterly or annually

INVESTINGDoubling Your Money

Rule of 72 72 / % Rate = # of Years to Double Your $ 72/# of Years to Double Your $ = % Rate

Example #1: $1,000 investment @ 6% interest rate 72/6=12 You will have $2,000 in 12 years