Savings & investingFoldables

Financial Pyramid

• Speculative• Real Estate• Commodities

Capital Growth

• Mutual Funds• Stocks• Bonds

Financial Growth

• Money Market Account• Retirement• Certificate of Deposit

Income

• Will• Insurance• Emergency• Savings Account

Basic Financial Planning (Protection)

Savings tools

Savings Account

• Money not spent on current expenses

• Lower Interest

• Low Risk• Highly

Liquid

Money Market Deposit Account

• Money not spent on current expenses

• More interest

• Medium Liquidity

• Low Risk

Certificate of Deposit

• Putting your money into a time commitment account.

• Higher Interest

• Financial penalties for early withdrawal

Investment tools

Bonds

•A form on loaning your money to the government or a company

•Low Risk•Low liquidity

Stocks

•Purchasing part ownership in a company

•Medium Risk

•Low Liquidity

Mutual Funds

•Investing in several different types of investments

•Medium to Low Risk

•Low liquidity

Real Estate

•Purchasing Commercial or Residential Property

•Low liquidity

•High Risk

Speculative Investments

•High Risk Investments

•Penny Stocks/Collectables

Savings & Investing Vocabulary

Risk

•The possibility that your saving/invest will fail to produce a profit.

Return

•The profit from your savings/investing

Dividends

•Your profit when you own Stock (Shareholder/Stockholder)

Capital Gains

•Your profit when you sell your asset (Real Estate)

Interest

•The profit from savings/investing• Certificate of Deposit• Savings Account• Bonds

Liquidity

•How long it takes for you to get cash out of your account and in your hand.

Diversification

•When you invest your money into several different types of accounts•Some money into:

•Savings•CD•Bonds•Etc.

Retirement

•Saving money while you are working for when you are old enough to stop working (60 years old+)• Usually Invested (long term goal)• Mutual Funds• IRA’s (Roth & Traditional)• 401K• Employer Sponsored

Simple Interest

•Earning Interest on the principal investment

•Principal x Rate x Time

Compound Interest

•Earning Interest on the Principal and Interest

Principal

•The initial amount of the investment/savings

The Rule of 72

What is does

•Tells you how long it takes to double your money

• 72 = # of years

% Rate