The big QuestionThe big Question  A stranger on the street approaches you with a strange proposition: You can have a million dollars right then and there or you can have a magical penny that doubles every day in value for the next 30 days.  What do you do?

The big AnswerThe big Answer  The million dollars may be a million dollars but at the end of 30 days the penny would have been worth… $5,368,709.12

The power of Compounding  First rule of compounding: Time is everything!  Second rule of compounding: Interest rates make a big difference  Third rule of compounding: Regular contributions help your savings grow.

Saving  Make a habit of “paying yourself first”  Savings accounts are the simplest way to save money and earn interest on that money while still having that money easily accessible  You need to consider:  Interest Rate and compound period  Fees, charges, penalties  Any minimum balance requirements

Savings AccountsSavings Accounts Positives Low Risk Easily Accessible Automatic Deposits Negatives Low Rate of Return Charges on Usage High Inflation Rate

Other OptionsOther Options

Investments  What are some other places where we can put our money to work?  Bonds  Mutual Funds  Stocks  Real Estate

Bonds what they are  A bond is an “IOU,” certifying that you loaned money to a government or corporation and outlining the terms of repayment. how they work  Buyer may purchase bond at a discount. The bond has a fixed interest rate for a fixed period of time. When the time is up, the bond is said to have “matured” and the buyer may redeem the bond for the full face value.

Mutual FundsMutual Funds what they are  Professionally managed portfolios made up of stocks, bonds, and other investments. how they work  Individuals buy shares, and fund uses money to purchase stocks, bonds, and other investments.  Profits returned to shareholders monthly, quarterly, or semi-annually in the form of dividends.  Allows investors to own a diversified portfolio of investments that can lower overall risk

Stocks what they are  Stock represents ownership of a corporation. Stockholders own a share of the company and are entitled to a share of the profits as well as a vote in how the company is run. how earnings are made  Company profits may be divided among shareholders in the form of dividends. Dividends are usually paid quarterly.  Larger profits can be made through an increase in the value of the stock on the open market.

More about stocksMore about stocks advantages  If the market value goes up, the gain can be considerable.  Money is easily accessible. disadvantages  If market value goes down, the loss can be considerable.  Selecting and managing stock often requires study and the help of a good brokerage firm.

Let’s try for ourselvesLet’s try for ourselves  Go to  Register for the site.  Complete the Lessons 1, 2, and 3 and Quiz 1, 2, and 3 under the learn tab.  Start Investing! See how well you can ‘play the market’