Business & Personal Finance INVESTING. Bonds When you buy bonds you are lending money to a federal or state agency, municipality or other issuer, like.

Slides:

Advertisements

Similar presentations

Making Money…and then having your money make money…and then having that money make money.

Advertisements

Introduction to Savings & Investments

To play, start slide show and click on circle Yellow OrangeGreenPurplePink

Chevalier Spring  Savings – refers to the dollars that become available when people abstain from consumption  Financial System – a network of.

Unit 5 Microeconomics: Money and Finance Chapters 11.2 Economics Mr. Biggs.

Bonds and Mutual Funds Carl Johnson Financial Literacy Jenks High School.

Savings and Investing.

Copyright © 2011 Pearson Education, Inc. Managing Your Money.

Investing 101. Types of Savings tools Savings Account: An interest-bearing account (passbook or statement) at a financial institution. Certificates of.

Investments & The Stock Market

Bonds & Mutual Funds Chapter 10.

 What vehicle will get you to your retirement goals?

Investing Bonds and Stocks. Setting Investment Goals  Investing presents opportunities for people and businesses to increase their income.  Investing.

Saving & Investing Achieving Financial Success. What does it mean? Saving  Putting money aside for future use Investing  Using money so that it earns.

1 Chap 16 – Retirement Planning Objectives: –Review of need to save for retirement –Understand types of plans and how they differ Defined benefit and defined.

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.

Bonds and Mutual Funds Chapter 10. Corporate and Government Bonds Section 10.1 Describe the characteristics of corporate bonds Describe the characteristics.

Investing Opportunities Using Investment Opportunities as a Means to Increase Individual Wealth.

Introduction to Investing Take Charge of Your Finances Family Economics and Financial Education.

Investments Who wants to be a millionaire?. What kind of an investor are you?  Rate all investment options according to three characteristics:  Safety.

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.

Bonds and other financial assets

McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. Objective 1: Explain why you should establish an investment program.

 A mutual fund is a business that pools money from many people to invest in various ways.  A mutual fund’s investors, in effect, own a portion of the.

Building: Knowledge, Security, Confidence Pay Yourself First FDIC Money Smart for Young Adults.

Saving and investing strategies help individuals achieve …….? Personal financial goals.

Take Charge Saving & Investing. Insuring Deposits  FDIC  Federal Deposit Insurance Corporation  Protects Checking, Savings, MMA, & CDs  Insures money.

Which makes more sense? Why?  To sacrifice and put away $2,000 a year when you are 22 to 33 years old (12 challenging year of saving)OR  To wait until.

Chapter 10 Saving for the Future. Why Save?? Short-term needs: – – – – –

Ms. Lewis Personal Finance. General Overview There are no sure things when investing Any investment has a certain degree of risk Most securities are not.

Copyright © 2011 Pearson Education, Inc. Managing Your Money.

Pay Yourself First.

I. Types of Investments Buying stock

Savings & Investment Vehicles Mike Meade. Saving vs. Investing Saving o Putting money away for safe-keeping o Emergency funds o Zero risk Investing o.

Investing Mr. Marcus Personal Finance. Why Should You Invest? To beat inflation To increase wealth To make money To let your money work for you. Does.

Investment company that pools the funds of many individuals to buy stocks, bonds, or other investments.

Bonds and Mutual Funds.  A bond is a certificate representing a promise to pay a definite amount of money at a stated interest rate on a specified due.

BONDS & FUTURES. WHY BUY BONDS? Corporate and Government bonds are other forms of investment. Return is usually lower than stock dividends but generally.

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.

Investment, Credit, and Interest BBI2O. Recap: types of investments Investment options vary according to risk and return  Risk: how “safe” is your investment.

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.

Personal Finance. Warm Up 1) What kind of information can be found in a paycheck? 2) What deductions do you think are made to your salary? Be specific.

The Stock Market. What are stocks? A stock is a percentage of ownership in the company.

Personal Finance Key Terms. Capital Formation Movement of money from households to businesses and government through investments and loans.

Saving and Investing. To save or not to save, that is the question.

9.02 Investing in bonds. T H17. Investing in Bonds Bonds –Promise to pay a definite amount of money at a stated interest rate on a specified.

Chapter Ways to Save  Open a savings account  Bank  Credit union  Savings accounts earn interest  Interest is the money that banks pay depositors.

Chapter 11. – A savings account pays interest, has no maturity date, and allows funds to be withdrawn at any time without penalty.savings account –

Managing Your Money Chapter 23.

What are Bonds? Bonds are certificates of indebtedness Think of a Bond is as an I.O.U. In reality a bond is nothing more than a loan The investor is lending.

C12S2: Investment Strategies and Financial Assets  Main Idea:  To invest wisely, investors must identify their goals and analyze the risk and return.

Investing & Housing Let your money make money.. Risk v. Return  All investments have risk & return  Undiversifiable Risk – Uncontrollable  Diversifiable.

Investing Fundamentals. Investing for the Future: Goal Setting Investment goals should be specific and measurable. Develop your goals by asking questions:

Chapter 6.2 Investing: Taking Risks With Your Savings.

$ $ $ CIVICS PERSONAL-FINANCE Bonds. What is a Bond?  A bond is a type of loan agreement between the issuer of the bond and the purchaser of the bond.

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.

CHAPTER 6 NOTES. Statement savings account: savings account where the depositor receives a monthly statement showing all transactions. Money market deposit.

Copyright 2007 Thomson South-Western Chapter 11 Saving and Investing Options.

Investment Your money making money. Social Security Def. Comprehensive federal program providing workers and their dependents with retirement, disability.

Financial Planning Government Bonds Corporate Bonds Bonds.

Practical Economics: Saving and Investing. Pay Yourself First Make investing a habit ▫$5,000 at 2% interest  20 year, $7,456 Long & Short Term Goals.

Investing in America Aim: How do Americans invest their money? ERHSMr. Graboski.

Investments First rule: Pay yourself first through saving. What is compound vs. simple interest? Second rule: As you acquire wealth and income learn to.

 S pecific – State exactly what you want to achieve, how you’re going to do it, and when you want to achieve it.  M easurable – A goal should be measurable.

Financial Intermediaries Institutions that channel savings to investors; such as banks, insurance co.’s and credit unions.

W!se Unit 5 Investing. What is Investing?  Putting money to work earning more money for the future.

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.

Investing Opportunities

Personal Financial Literacy: Investment Strategies and Tax Implications Essential Questions: How can individuals save and invest to meet financial goals?

Presentation transcript:

Business & Personal Finance INVESTING

Bonds When you buy bonds you are lending money to a federal or state agency, municipality or other issuer, like a corporation. A bond is like an IOU. The issuer promises to pay a stated rate of interest during the life of the bond and repay the entire face value of the bond when it reaches maturity. The interest a bond pays is based primarily on the credit quality of the issuer and current interest rates.

Types of Bonds Savings Bonds: Government issued and government backed. Treasury bonds, bills and notes: The bonds the U.S. Treasury issues are sold to pay for an array of government activities and are backed by the full faith and credit of the federal government.

Treasury Bonds: Securities with terms more than 10 years. Interest is paid semi-annually. Treasury Bills: Short-term securities with maturities of 3 months, 6 months or 1 year. Treasury Notes: Interest-bearing securities with maturities ranging from 2 to 10 years. Interest payments are made every 6 months.

Stocks Stock: Owning part of a company. Stockholder: The owner of the share(s) of stock Dividend: An income distribution by a corporation to its shareholders usually made quarterly. Stock Appreciation: An increase in the value of stock in a company, generally based on its ability to make money and pay a dividend.

Mutual Funds Established to invest many people’s money in many firms. A mutual fund spreads across numerous companies rather than relying on just one to perform well.

OTHER INVESTMENTS

Individual Retirement Accounts Lets you build wealth and retirement security. Grows tax free until you are ready to retire and withdraw it. IRA

401 k Plans Offered by companies to their employee’s. Participants authorize a certain percentage of their before-tax salary to be deducted from their paycheck and put into a 401(k).