Take Charge Saving & Investing

Why You Should Save  Saving  Setting aside income for a period of time so that it can be used later  Reasons people save  Major purchases  Emergencies  Retirement  Limited Withdrawals Limited Withdrawals

Insuring Deposits  FDIC  Federal Deposit Insurance Corporation  Protects Checking, Savings, MMA, & CDs  Insures money up to $250,000  01/01/2011 ~Limit will adjust by the amount of inflation occurred over the previous 5 years  NCUA  National Credit Union Association

LIQUIDITY  What does it mean for your assets to be LIQUID?  How easily they can be turned into $$$  List the following in order of their Liquidity (most to least):  Real Estate, Savings Bonds, Cash, Checking Accounts, Stock Savings Accounts

LIQUIDITY  Cash  Checking Accounts  Savings Accounts  Savings Bonds  Stock  Real Estate

Earning Interest on Savings  Interest  Money earned by someone that places money in a Savings Vehicle  2 Types of Interest  Simple  Interest earned only on the money you deposited into a savings account (principal)  Compound  Interest earned on both the principal & other interest you previously earned in that account  Compounded daily, monthly, quarterly or annually

INVESTING Doubling Your Money  Rule of 72  72 / % Rate = # of Years to Double Your $  72/# of Years to Double Your $ = % Rate  Example #1:  $1,000 6% interest rate  72/6=12  You will have $2,000 in 12 years