May 17 & 18 Objectives Reminder Today’s Agenda (76) Compare savings & investment options. Reminder Today’s Agenda 1. Savings and Investments PowerPoint + Notes. Save or Invest Worksheet. Closure Do you think that you are more inclined to be a saver or an investor? Why? BRO Time: Explain the difference between savings and investments. What is one example of an investment?

Compare savings and investment options. Task 76

Savings Tools – secure and liquid accounts offered by depository institutions Liquidity – how quickly an account can be turned into cash

Money Market Deposit Account Certificate of Deposit Savings Tools Checking Account Savings Account Money Market Deposit Account Certificate of Deposit

Gallery Walk Savings Tools (pg. 1) Investments (pg. 2) Definition Interest Rates Liquidity (high or low) Features & Benefits Definition Other Information (i.e., restrictions) Risk (high or low) Return (high or low)

Can an account be both secure and liquid? Think about it!

Ideal for Storing Emergency Savings Insured depository institutions offer accounts which are: Secure Accounts must stay within FDIC / NCUA insurance coverage limits Liquid Generally quick and easy to withdraw money

Savings Tools Characteristics Interest Liquidity Features Each savings tool has different characteristics Goal: Determine the savings tool most appropriate for reaching a financial goal

Why is it important to be able to withdraw money from a savings account? What kind of restrictions might be placed on a secure account? Think about it!

Investment Tools

Investment Tools Characteristics Financial Plan Savings Investments Investments -assets purchased with the goal of providing additional income from the asset itself but with the risk of loss

All Investments Have Some Risk Return Profit or income generated by saving and investing Trade off Higher returns Higher risk (chance of loss) Investment Risk Possibility that an investment will fail to pay the expected return Investments have the potential for higher returns

Investment Tools Bonds Stocks Mutual Funds Retirement Accounts

Compare & Contrast Saving Investing Use Liquidity Risk Return Purpose/Goal Have students volunteer answers for this chart prior to displaying next slide.

Saving vs. Investing Saving Investing Use Emergencies Long-term goals Liquidity More liquid Less liquid Risk Limited risk Higher risk Return Lower returns (0-4%) Higher returns (8-12%) Purpose/Goal Financial security Increased net worth

With a partner sitting near you, answer the four questions at the end of your notes. Think about it!

Save or Invest? Formative Assessment Complete the worksheet on the back of your note guide. When finished, raise your hand.

GO TO: www.themint.org Click on Tips for Teens tab Click on Savings Read Savings Tricks Play the savings games GO TO: www.themint.org