 Alumni is the plural form of alumnus (male) and alumnae (female) not a singular word  In 1942 there was a Phantom Barber in Mississippi who would sneak into people’s houses at night and cut their hair  Taylor Swift is the first woman to release two albums that each sold over a million copies in their first week  It takes 42 muscles to frown, buy it only takes 4 muscles to lift your arm to smack someone upside the head Fun Facts

Saving your Money Unit VIII: Savings, Investment and Insurance Lesson One

 Pay Yourself first is a common phrase used in personal finance planning  It is the idea of automatically taking money from your paycheck and putting it in a savings account  Because the savings contributions are automatically taken out you are “paying yourself” before paying other monthly living expenditures Pay Yourself First

 Saving is paying yourself  You do not have the money to spend now, but it is still yours  You have it for an unexpected expense or an expected long-term expense  As a bonus, a bank will pay you for leaving your money there for a while Saving Money

 The safest, most reliable, and most convenient way to save money is to keep money in a savings account at a retail bank or credit union  The money will earn a small amount of interest and will be there when you need it  It is insured by the FDIC and you can regularly make deposits to make sure it grows Savings Account

 Simple Interest- interest that is calculated based on the principal balance only  Compound Interest- interest that is calculated based on the principal plus interest that has already been calculated Interest

 Interest may be compounded daily, monthly, quarterly, semiannually, or annually  However, being compounded does not mean it is credited  Some banks may compound daily, but credit quarterly  If you withdraw before they credit the money, you may lose the money you have earned Compounding and Crediting

 There are various types of savings accounts that you can choose from  The goal is to choose which one works for you  There are three basic types of savings accounts  Passbook Accounts  Time Accounts  Money Market Accounts Types of Savings Accounts

 Passbook accounts are that standard type of savings account  They earn a small amount of interest, but are flexible, so you can withdraw money at any time  A passbook account is a good way to start saving Passbook Savings

 Time savings accounts require that you leave the money untouched for a set amount of time- or term  Usually the longer the term the higher the interest rate  If you remove the money before the term is up, you may have to pay a penalty or fee  Certificates of deposit are an example of a time savings account Time Savings

 Money Market accounts offer a higher rate of interest than passbook savings accounts  They usually have a minimum balance requirement and may limit the number of times per month you can withdraw money  Money market accounts typically offer check-writing or debit card services Money Market

 When you are beginning to save the top questions to consider when looking for a savings account are:  What is the interest rate?  Is the interest simple or compounded?  How often is interest calculated?  How often is the interest credited (added) to your account?  Are there services fees?  Can you withdraw money at any time? Getting a Savings Account

 The Rule of 72 shows how long it will take for an amount of money to double if it is invested or saved  72 ÷ interest rate= number of years that it will take for your money to double  Example: Your account offers you a 9% interest rate  72/9= 8 years for the money in your account to Rule of 72