Financial Algebra 3 April 2018.

Slides:

Advertisements

Similar presentations

True/False Credit unions do not provide insurance for their depositor’s savings.

Advertisements

Saving For the Future.  Why should we save? To provide for future needs. Both expected and unexpected. What might happen if you do not set something.

Chapter 3, section 5 Money Market & CD Accounts. I can…  Calculate interest earned on special savings accounts  Calculate the penalty for early withdrawals.

Methods of Saving © 2010 Pearson Education, Inc. All rights reserved Chapter 13.

Chapter 3 Banking Services

How Does Money Grow? Before You Invest. Interest refers to the amount you earn on the money you put to work by saving or investing. Savings accounts Individual.

Chapter 12 Savings.

SAVING FOR THE FUTURE  Growing Money: Why, Where, and How  Savings Options, Features, and Plans.

Personal Finance SECTION 5.2. Types of Savings Plans  Regular Savings Accounts  Certificates of Deposit  Money Market Accounts  U.S. Savings Bonds.

Savings Plans and Payment Methods. Types of Savings Plans O To achieve your financial goals, you will need a savings program. O Savings programs include:

© South-Western Educational Publishing Chapter 10 Saving for the Future Savings Goals and Institutions Savings Options, Features, and Plans.

Compound Interest Formula

GOALS BUSINESS MATH© Thomson/South-WesternLesson 3.7Slide 1 3.7Money Market and CD Accounts Calculate interest earned on special savings accounts Calculate.

Section 6.7 Financial Models. OBJECTIVE 1 A credit union pays interest of 4% per annum compounded quarterly on a certain savings plan. If $2000 is.

Section 5.7 Financial Models. A credit union pays interest of 4% per annum compounded quarterly on a certain savings plan. If $2000 is deposited.

Chapter © 2010 South-Western, Cengage Learning Saving for the Future Growing Money: Why, Where, and How Savings Options, Features, and.

How Does Money Grow Over Time? The Stock Market.

Chapter 13 METHODS OF SAVING. Learning Objectives  Explore the ways in which savings can earn interest  Examine the different types of bank accounts.

Type of accountWhat it is? What does it do? Risk LevelFDIC Insured? Savings/Checking Certificate of Deposit Individual Retirement Account Stock Market.

Best Way to Save $2000? By: Diana Olshevskaya, Matt Stahl, Brannon Montanez,

© South-Western Educational Publishing Chapter 10 Saving for the Future  Savings Goals and Institutions  Savings Options, Features, and Plans.

CH. 5.2 INTEREST-BEARING ACCOUNTS Banking Services.

Chapter 5 - Banking Section 1 – Financial Services & Institutions.

4 DEPOSITS IN BANKS 4.1 Deposit Accounts 4.2 Interest-Bearing Accounts

Calculating interest You can calculate the time value of your savings by figuring out how much interest you will earn. Principal – the original amount.

3 BANKING SERVICES 3-1 Checking Accounts

Module 5: Saving & Investing

Managing Money 4.

Write the following as decimals.

Disclaimer: The views expressed are those of the presenter and do not necessarily reflect those of the Federal Reserve Bank of Dallas or the Federal Reserve.

Opportunity costs and strategies

Section 5.7 Financial Models

Saving for the Future Growing Money: Why, Where, and How

8.3 Compound Interest HW: (1-21 Odds, Odds)

Let’s Do the Math! Maximizing your Return

MYPF 6.1 Growing Money 6.2 Saving Options

Checking Savings Investments

Savings Plans and Payment Methods

Savings Options.

Financial Algebra 2 April 2018.

Financial Algebra 4 April 2018.

Savings Accounts Unit 3.3.

Financial Institutions and Investments

10 Saving for the Future 10.1 Growing Money: Why, Where, and How

OBJECTIVES SAVINGS ACCOUNTS

Financial Algebra 11 April 2018.

Savings and Interest Lesson 4.4.

Let’s Do the Math! Maximizing your Return

Family Economics & Financial Education

Chapter 5, Section 2 Savings and Payment Methods

Banking Chapter 5.

3.6 – Mathematics of Finance

2-4 Explore Compound Interest

Banking Chapter 5.

Chapter 5 Savings. Chapter 5 Savings Section 5.1 Savings plans.

Savings and Interest Skill 11.

Chapter 5 Savings. Chapter 5 Savings Section 5.1 Savings plans.

2-7 Future Value of Investments

10 Saving for the Future 10.1 Growing Money: Why, Where, and How

4 DEPOSITS IN BANKS 4.1 Deposit Accounts 4.2 Interest-Bearing Accounts

Financial Literacy BCS-FL-8

HOW TO MAKE MONEY WITHOUT DOING ANY WORK

Banking Chapters 5.

Banking What should you do with the money you save?

3-5 COMPOUND INTEREST Your money can grow larger and quicker with compound interest than it can with simple interest.

Managing Money 4.

3.7 MONEY MARKET AND CD ACCOUNTS

Chapter 5 Savings. Chapter 5 Savings Section 5.1 Savings plans.

MYPF 6.1 Growing Money 6.2 Saving Options

Chapter 5 The Banking System

Presentation transcript:

Financial Algebra 3 April 2018

announcements This week is PERT testing (Wednesday/Thursday) and continuing makeups Thankfully, no one in here is on the list Please remember: the first quiz of the quarter is due by April 5th Today is the last day to pick up a copy Regrades have not been completed/input into the system yet

Some of the Vocabulary for this section 401(k)/403(a) plans Annuity Interest Compound interest Annuity/fixed annuity Individual retirement account (IRA) Traditional IRA Roth IRA SEP-IRA Money market deposit account  Pension plan Vesting

Money Market Deposit Account (MMDA) Money market deposit account (MMDA): A special type of hybridized savings account with certain restrictions and advantages You are required to maintain a minimum balance and will be charged if you don’t There is no maturity date The account pays interest like a regular savings account You are offered limited check-writing privileges (closer to a regular checking account) If you write more checks per month than your limit, then you will be charged a fee MMDAs are similar to negotiable order of withdrawal accounts (NOWs), but different in that: The interest rate on a NOW tends to be much lower than an MMDA NOWs are less likely to charge money for writing larger numbers of checks

APY and Comparing Savings Options Compound interest: Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan In simpler terms: “Interest made on interest” We touched on it briefly in yesterday’s real-world problem Annual percentage yield (APY): The interest rate that takes the compounding frequency into account Huh? APY tells you what your account will really earn on an annual basis once compounding is taken into consideration Always use APY as a tool to evaluate savings options that have different compounding frequencies Banks must make the APY available to you

Retirement savings I did mention before that all of you are lucky… You have a commodity that I don’t have when it comes to retirement…and life in general really. You have time. If you start saving now, you can accumulate a lot more than if you waited for a few more years How much more?

Retirement savings

Retirement savings