alabama jump$tart...slide 2 - saving vs. investing, historically lesson reference: money management,...
TRANSCRIPT
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Alabama Jump$tart
Alabama Jump$tart
April 2007
“Teach Youth to Save & Invest Month”
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Speaker Introduction Speaker Introduction
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Slide 2 - Reasons to Save Lesson Reference: Money Management, Activity 2 – Overhead 2
REASONS TO SAVE • Provide for unexpected emergencies.
• Purchase expensive items in the future.
• Ensure retirement.
• Plan for investment opportunities.
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PLACES TO SAVE MONEY Would you save your money in any of these places? Why? Why not? Can you think of other places to save money?
• Bed & Mattress • Cookie Jar • Pillow • Wallet • Money Belt • Small House Safe
Slide 1 - Places to Save Money Lesson Reference: Introduction to Financial Services, Activity 2 – Overhead 1 7
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Slide 4 – Places to Save
Lesson Reference: Money Management, Activity 2 – Handout 2
PLACES TO SAVE
• Savings Accounts
• Money Market Accounts
• Certificates of Deposit (CDs)
• Savings Bonds
• Insurance
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Slide 5 - Looking at Places to Save
Lesson Reference: Money Management, Activity 2 – Overhead 3
LOOKING AT PLACES TO SAVE
On a scale of 1 to 5 (with 1 being low and 5 being high), rate the
following places to save your money.
Based on the above ratings, where would you save your money? Why?
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Slide 2 – Returns on Savings
Lesson Reference: Money Management, Activity 3 – Handout 2
IMPACT OF RETURNS ON SAVINGS This chart shows what happens at several different rates to $100 in an account when no money is withdrawn and
interest is compounded yearly.
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Slide 3 - Places to Invest Lesson Reference: Money Management, Activity 4 – Overhead 3
PLACES TO INVEST
• Stocks
• Bonds
• Mutual Funds
• Retirement Plans
• Real Estate
• Collectibles/Valuables
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QUESTIONS TO ASK BEFORE MAKING AN INVESTMENT
1. How safe is the investment?
2. What types of returns can I expect?
3. What kind of risk is involved?
4. Can I get my money back if I need it? How long will it take and how much will it cost to get it back quickly?
5. Are my investments in a variety of places to spread my risks (diversification)?
6. Check out the person offering you an investment with the Alabama Securities Commission! Alabama law requires most securities and the people selling them to be registered.
Slide 4 – Questions to Ask
Lesson Reference: Money Management, Activity 4 – Handout 2 12
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Slide 2 - Saving vs. Investing, Historically
Lesson Reference: Money Management, Activity 4 – Overhead 2
SAVING VS. INVESTING, HISTORICALLY
The S&P 500 stock index has increased almost 200 percent since 1970. On average, the stock market returns 12 percent per year, including dividends. Savings rates, by comparison, have been much lower – anywhere from 1.5% to 5%, usually depending on the length of time the savings are deposited.
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Sources of Information • www.jumpstart.org
• Citigroup Inc.
Citigroup Financial Education Curriculum
http://curriculum.financialeducation.citigroup.com
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Thank you! Thank you!
The End