© south-western educational publishing chapter 10 saving for the future savings goals and...

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© South-Western Educational Publishing Chapter 10 Saving for the Future Savings Goals and Institutions Savings Options, Features, and Plans

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Page 1: © South-Western Educational Publishing Chapter 10 Saving for the Future  Savings Goals and Institutions  Savings Options, Features, and Plans

© South-Western Educational Publishing

Chapter 10

Saving for the Future

Savings Goals and InstitutionsSavings Options, Features, and

Plans

Page 2: © South-Western Educational Publishing Chapter 10 Saving for the Future  Savings Goals and Institutions  Savings Options, Features, and Plans

GOALSGOALS

© South-Western Educational Publishing

Lesson 10.1

Savings Goals and Institutions

Page 3: © South-Western Educational Publishing Chapter 10 Saving for the Future  Savings Goals and Institutions  Savings Options, Features, and Plans

© South-Western Educational Publishing

Why You Should Save

Short-term needsLong-term needs

Financial security

Page 4: © South-Western Educational Publishing Chapter 10 Saving for the Future  Savings Goals and Institutions  Savings Options, Features, and Plans

© South-Western Educational Publishing

How Your Money Grows

Page 5: © South-Western Educational Publishing Chapter 10 Saving for the Future  Savings Goals and Institutions  Savings Options, Features, and Plans

© South-Western Educational Publishing

Compounding Interest Annually

Beginning Interest EndingYear Balance Earned (5%) Balance

1 $100.00 $5.00 $105.00 2 105.00 5.25 110.25 3 110.25 5.51 115.76

Page 6: © South-Western Educational Publishing Chapter 10 Saving for the Future  Savings Goals and Institutions  Savings Options, Features, and Plans

© South-Western Educational Publishing

Compounding Interest Quarterly

Quarterly Compounding Annual Interest Rate = 6%

Beginning Quarterly Quarterly Interest Ending

Year Balance Interest Q1 Q2 Q3 Q4 Balance

1 $100.00 .015 $1.50 $1.52 $1.55 $1.57 $106.142 106.14 .015 1.59 1.62 1.64 1.66 112.653 112.65 .015 1.69 1.72 1.74 1.77 119.57

Page 7: © South-Western Educational Publishing Chapter 10 Saving for the Future  Savings Goals and Institutions  Savings Options, Features, and Plans

© South-Western Educational Publishing

Where You Can Save

Page 8: © South-Western Educational Publishing Chapter 10 Saving for the Future  Savings Goals and Institutions  Savings Options, Features, and Plans

GOALSGOALS

© South-Western Educational Publishing

Lesson 10.2 Savings Options, Features, and Plans

Page 9: © South-Western Educational Publishing Chapter 10 Saving for the Future  Savings Goals and Institutions  Savings Options, Features, and Plans

© South-Western Educational Publishing

Savings Options

Page 10: © South-Western Educational Publishing Chapter 10 Saving for the Future  Savings Goals and Institutions  Savings Options, Features, and Plans

© South-Western Educational Publishing

Selecting a Savings Plan

Page 11: © South-Western Educational Publishing Chapter 10 Saving for the Future  Savings Goals and Institutions  Savings Options, Features, and Plans

© South-Western Educational Publishing

Saving Regularly

Page 12: © South-Western Educational Publishing Chapter 10 Saving for the Future  Savings Goals and Institutions  Savings Options, Features, and Plans

© South-Western Educational Publishing

Compounding Interest and Making Additional Deposits

Beginning Interest Ending

Year Balance Deposits Earned (5%) Balance

1 $ 0.00 $100.00 $ 5.00 $105.002 105.00 100.00 10.25 215.253 215.25 100.00 15.76 333.014 331.01 100.00 21.55 452.56