Saving and Investing

Saving and InvestingVault Lesson 6

SavingsSavings–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 AccountSavings 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 DepositCertificate of Deposit–A savings certificate that gains interest and

has a set time before you can withdrawal your money

Savings Accountvs.

Certificate of DepositSavings Account– gains interest and you can withdrawal your

money anytime you wantCertificate of Deposit– gains interest but you must leave your

money in for a set time before you can withdrawal it

InterestInterest–Amount of money the borrower pays for

the use of a lender’s money

BudgetBudget–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.

ExpenseExpense– 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

InvestingInvesting–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 onceStocks–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.