“Stop trying to keep up with the Jones, they are broke” Pat Foran.

Slides:



Advertisements
Similar presentations
MANAGING MONEY INVESTMENTS & RETIREMENT SENIOR ADVISORY March, 2014.
Advertisements

Teens 2 lesson ten savings and investing. simple interest calculation Deposit x Interest Rate x Number of Years = Interest Earned example You have $100.
Saving and Investing.  Always pay yourself first!  All little can go a long way  Don’t save your money under your mattress! (and other savings mistakes.
© Family Economics & Financial Education – Revised November 2004 – Saving Unit – Managing Your Cash Funded by a grant from Take Charge America, Inc. to.
Investing 101. Types of Savings tools Savings Account: An interest-bearing account (passbook or statement) at a financial institution. Certificates of.
Financial Unit Savings.
Saving and Investing April How to Select a Savings Plan 1. Decide whether to save or invest. 2. Can you withdraw money from this savings plan? 3.
CHAPTER 8 SAVING Plan for Financial Security
Who Wants to Become a Millionaire?. Savings vs. Investing Savings:  Putting $ aside (mattress, bank account, jar, piggy bank etc.) to reach a particular.
Becoming a Millionaire:
Savings and Investing. Key Terms Saving Investing Deposit Withdrawal Interest Interest rate Account balance Compounding of interest Future value Present.
Introduction to Stock Market. Common Vocabulary Common Vocabulary Stock Exchange – Place where publicly held companies are bought and sold Nasdaq – an.
Lesson 5-2 Savings Accounts
“Stop trying to keep up with the Jones, they are broke” Pat Foran.
Chapter 30 Savings Accounts pp
Saving & Investing Achieving Financial Success. What does it mean? Saving  Putting money aside for future use Investing  Using money so that it earns.
{ Savings & Invested Test Review. { Interest The percentage rate paid on money you have invested/saved…
Unit 9 - Finance Spending, Saving and Investing. Three things you can do with money: 1) Spend 2) Save 3) Invest.
Vocabulary. Section 9.1 Vocabulary Pre-tax dollars: Deposit into a retirement account before taxes have been taken out of your paycheck. This lowers your.
5.1 Savings and Investing 5.2 The Rule of 72 Getting Started.
Why It’s Important Savings accounts allow you to put money aside and help make your money grow.
Saving and Investing. Why Save?  Saving : setting aside income for a period of time so that it can be used later  People save for purchases that require.
Chapter 12 Savings.
The Role of Saving. © Family Economics & Financial Education – Revised November 2004 – Saving Unit – Introduction to Savings Funded by a grant from Take.
 Saving is income not spent.  Saving also includes reducing spending, such as recurring costs.  Savings can include a relatively low-risk investment.
Teens lesson twelve saving and investing. comparing savings and investment plans Teens – Lesson 12 - Slide 12-O instrumentmaturityriskyieldminimum balance.
Unit 3 Saving & Investing. A Little Can Add Up Save this each week … at % interest … in 10 years you’ll have $7.005%$4, % $9, % $14,160.
Chapter 10 Saving for the Future. Why Save?? Short-term needs: – – – – –
Pay Yourself First.
I. Types of Investments Buying stock
Savings and Investing Why Save 8.1. What do you dream of achieving in your lives? What do you dream of achieving in your lives? How do you think you will.
Introduction to Saving. Saving Basics Savings is the portion of current income not spent on consumption. Recommended to have a minimum of 3-6 months salary.
© Family Economics & Financial Education – Revised April 2008– Saving Unit – Managing Your Cash Funded by a grant from Take Charge America, Inc. to the.
Investment company that pools the funds of many individuals to buy stocks, bonds, or other investments.
NEFE High School Financial Planning Program Unit Three – Investing: Making Money Work for You Unit 3 - Investing: Making Money Work for You.
You can BANK on it!. Objectives STUDENTS WILL BE ABLE TO: Understand the different types of financial institutions Calculate how long it will take to.
© Family Economics & Financial Education – Revised November 2004 – Saving Unit – Managing Your Cash Funded by a grant from Take Charge America, Inc. to.
Unit 3 Saving & Investing. A Little Can Add Up Save this each week … at % interest … in 10 years you’ll have $7.005%$4, % $9, % $14,160.
Alli Watkins. What are bonds? Bonds are like loans, where you are the lender and the government or big companies is the borrower. They are NOT INSURED.
Teens lesson twelve saving and investing presentation slides 03/08.
MORE FACTS ABOUT INVESTING PERSONAL FINANCE. EMERGENCY FUNDS  An ___________account needs to have a high degree of _______ and __________.  High safety.
FINANCE. Finance Over the next two weeks we are going to be diving into finance – Business Finance Money management, budgeting, payroll, income, banking.
Savings. Pay yourself first Next, pay your expenses leftover money is called discretionary income.
Employment Standards Act:  All employees must be paid minimum wage  Exception: Training Wage ($6.00 for the first 500 hours work)  Employers must make.
Teens lesson twelve saving and investing presentation slides 04/09.
G1 Introduction to Investing Financial Literacy.
© Family Economics & Financial Education – Revised April 2008– Saving Unit – Managing Your Cash Funded by a grant from Take Charge America, Inc. to the.
CHAPTER 6 SAVING AND INVESTING. LEARNING OBJECTIVE I understand how the entire community benefits when I put money in a savings account.
Planning for Retirement WHY IS PROPER PLANNING CRITICAL? Many people relied on Social Security for all of their retirement needs Life expectancy is increasing.
Spending, Saving, and Investing. Rational Decisions and Financial Planning Economist assume that, given enough information, most people are rational and.
SAVINGS – Plan for Financial Security. Why Save?Savings is a trade off. You agree to save now in order to spend in the future.  Save for the Unexpected.
Chapter 1 Introduction to Savings Personal Finance Mr. Brown.
Page 1 Financial Institutions and Investments. Page 2.
Chapter 13 METHODS OF SAVING. Learning Objectives  Explore the ways in which savings can earn interest  Examine the different types of bank accounts.
Chapter 6 Saving & Investing. Deciding to Save There are many reasons to save:  for purchases that require more funds than you usually have at one time.
Savings Options, Features and Plans Section 2 Notes Chapter 10 Unit 4: Savings and Investing.
Smell Dating: The New Tinder?  Smell Dating sends you a shirt and requests that you wear it for three days and three nights without deodorant.  Once.
Savings Options, Features and Plans Section 2 Notes Chapter 10 Unit 4: Saving.
401K IRA SEP SIMPLE KEOGH 403B What do these letters and numbers represent?
8.01 A: Summarize the various types of short-term and long-term investment.
Module 5: Saving & Investing
Take Charge of Your Finances Family Economics & Financial Education
III. INVESTING Investing Options 4. Real Estate – Property
Truth in Lending Act requires that lenders use similar methods for calculating the cost of credit and for disclosing credit terms so consumers can tell.
Introduction to Saving
Financial Institutions and Investments
Monday, March 27, 2017 Objective: Students will be able to examine the types of accounts available to consumers from financial institutions and the risks,
Economics – Chapter 6 Saving and Investing.
Monday, November 16, 2015 Objective: Students will be able to examine the types of accounts available to consumers from financial institutions and the.
Presentation transcript:

“Stop trying to keep up with the Jones, they are broke” Pat Foran

 Write down what you know about investing.  What confuses you or what questions do you have about investing?

 It is not how much you make, it is how you spend and save.

 Save 10% of your income.

 $20/week

◦ example 1:  Save each week Interest 10 years you’ll have  $7.00 5% $4,720  % 9,440  % 14,160  % 18,880  % 23,600

 Rate 5 yrs. 10 yrs. 15 yrs 20 yrs.  5% $ 5,525 $12,578 $21,578 $33,065  6% 5, ,276 36,786  7% 5,751 13,816 25,129 40,995  8% 5,867 14,487 27,152 45,762  9% 5,985 15,193 29,361 51,160  10% 6,105 15,937 31,772 57,257  11% 6,228 16,722 34,405 64,203  12% 6,353 17,548 37,279 75,052

 savings account  chequing/savings account  Usually small amounts of interest

 to determine about how many years it will take to double your money:  72 divided by the interest rate = Years to double investment  72 divided by a number of years to determine the Interest rate required to double your money in that period of time.

 How long would it take to double your money in an account that paid 6% per year?  What interest rate would double your money in five years?

 Handout

 When you make a financial investment, you are setting aside money with the expectation that you will receive a profit.  You must invest money in order to make money. Personal investments such ◦ Bonds ◦ GICs ◦ Stocks ◦ Mutual Funds ◦ RRSPS ◦ Tax Free savings accounts

 what they are and how they work  Financial institution pays a fixed amount of interest for a fixed amount of money for a fixed amount of time, usually for longer than a year  Most institutions require a larger minimum deposit than for a term deposit

 benefits  No risk  Simple  No fees  Offers higher interest rates than a savings account and term deposit

 trade-offs  Money “locked in” for fixed and longer term, compared to term deposit  Withdrawal penalty if cashed before expiration date (penalty can be higher than the interest earned)  Note: GICs mature if the holder dies before the maturity date.

 Save up to $5500 annually and it will grow tax free.  You can take the money out at any time without paying a penalty.  You do not receive a tax deduction  You do not pay a tax penalty  Must be 18 and over

 what they are and how they work  Plans that help individuals set aside money to be used after they retire.  Income tax not immediately due on money put into a retirement account, or on the interest it makes.

 Income tax paid when money is withdrawn.  Penalty charges apply if money is withdrawn before the maturity date, except under certain circumstances.  Income after retirement is usually lower, so tax rate is lower

 Handout

 What are your goals? What are you hoping to achieve from your investments?  What is your target rate of return – that is, what are you hoping to earn from your investments?  What is your level of investor knowledge and experience with investing? 

 What is your “risk tolerance?” What level of risk are you are comfortable with?  How much do you have to invest?  What is your “time horizon” – at what points will you need money – and how much will you need?

 each year billions of dollars are lost to fraudulent investments. Some of the most common include: Don’t write the following.  Illegal pyramids, insider trading, and unlicensed investment brokers  High-risk “penny” stocks and fraudulent securities  Fraudulent franchises and business opportunities

 /earl-jones-in-trust /earl-jones-in-trust

 1. What are the different things people can do with their money?  2. Why is saving important?  3. What are some ways to try and save money?  4. What is the purpose of investing?  5. Why might you choose to work with an advisor?

 6. What factors can affect a person’s comfort level with risk?  7. Why is investing important to the economy?  8. What are some key criteria to consider when making decisions about money?

 The Johnson family includes Marv (age 34), Gail (33), Andrew (8), and Molly (4).  What are some investment goals that might be appropriate for this family? /2  What types of investments might be used to achieve these goals? /2

 What type of investment or savings option would be the best for the following:  High school student  College/University student  University graduate, first job, income - $35000/per year  50 year old, full time job – $65000/year, would like to retire in 10 years

 1. How long would it take to double your money in an account that paid 6 percent  per year?  2. What interest rate would double your money in five years?

 is/thebottomline/2013/01/planning_for_retir ement.html is/thebottomline/2013/01/planning_for_retir ement.html