Saving and Investing Vault Lesson 6

Saving and Investing Vault Lesson 6

Savings Savings – Money set aside for short- or long-term goals When you save money you are putting money aside to reach your goals prepared in case of an emergency

Savings Account Savings Account – An account that gains interest and allows withdrawals When selecting a savings account look for one with a high interest rate.

Savings Account Advantages Savings accounts might earn interest on your savings. You can take money out of savings anytime you want.

Certificate of Deposit Certificate of Deposit – A savings certificate that gains interest and has a set time before you can withdrawal your money

Savings Account vs. Certificate of Deposit Savings Account – gains interest and you can withdrawal your money anytime you want Certificate of Deposit – gains interest but you must leave your money in for a set time before you can withdrawal it

Interest Interest – Amount of money the borrower pays for the use of a lender’s money

Budget Budget – A spending and savings plan Advantages of having a budget Having a budget is the best way to make the most out of your money Creating a budget helps you manage your money

Advantages of Having a Budget Having a budget is the best way to make the most out of your money Creating a budget helps you manage your money Budgets can be used to help you achieve BOTH long-term and short-term goals.

Expense Expense – The cost of goods and services

Ways Kids Can Cut Expenses Watching movies at home rather than going to the movie theatre Hanging out with friends rather than going shopping Eating at home rather than going to a restaurant

Investing Investing – When you purchase a security like a stock or bond in the hopes that over time it will make money

Other Ways to Invest Money Mutual Fund – A way to invest your money in a few investment types at once Stocks – An investment in a company that can build your wealth

http://vault.everfi.net Use the link above to go to the Vault web site. Log in Complete Lesson 6: Saving and Investing You might want to review this PowerPoint before you take the 10 question post assessment for this lesson.