1. Investing:
Making Money Work for You

2. Savings and Investments
Unique
Savings
Features
Unique
Investment
Features
Common
Features
What are some features common to both investments and savings?
3-A

3. Investing Weekly at 5% Interest
Amount Saved
Per Week
Value After
10 Years
$ 7.00
$ 4,720
$ 14.00
$ 9,440
$ 21.00
$ 14,160
$ 28.00
$ 18,880
$ 35.00
$ 23,600
3-B 1

4. Calculating Simple Interest
Slide 1.3
Calculating Simple Interest
Interest = Principal (amount of initial saving) x Rate (of interest being paid on savings) x Time (in years)
Example: Simple Interest at 8% for 3 years
Interest = ($100) x (0.08) x (3) = $24

5. Investing Annually to Achieve a Goal
Value of $20
1 Year
2 Years
4 Years
6 Years 4%
$20.80
$21.63
$23.40
$25.31 5%
$21.00
$22.05
$24.31
$26.80 6%
$21.20
$22.47
$25.25
$28.37 8%
$21.60
$23.33
$27.21
$31.74
10%
$22.00
$24.20
$29.28
$35.43
3-C 1 2 3 4 5

6. * Assumes a 365-day year for daily amounts
To Have $50,000 at 8% Interest
Number of
Years Saving
Monthly
Amount
Daily
Amount* 6
$543.33
$17.79 4
$887.31
$29.06
Assumes a 365 day year for the daily amounts. 2
$1,928.03
$63.17
* Assumes a 365-day year for daily amounts
3-D 1 2 3

7. Investing a $10,000 Lump Sum 5% $12,763 $16,289 $20,789 $26,533 6%
Interest
Rate 5
Years 10
Years 15
Years 20
Years 5%
$12,763
$16,289
$20,789
$26,533 6%
$13,382
$17,908
$23,966
$32.071 7%
$14,026
$19,672
$27,590
$38,697 8%
$14,693
$21,589
$31,722
$46,610 9%
$15,386
$23,674
$36,425
$56,044
5 years at 5% 12,763
10%
$16,105
$25,937
$41,772
$67,275
11%
$16,851
$28,394
$47,846
$80,623
12%
$17,623
$31,058
$54,736
$96,463
3-E 1

8. Investing $1,000 Annually 5% $5,526 $12,578 $21,579 $33,066 6% $5,637
Interest
Rate 5
Years 10
Years 15
Years 20
Years 5%
$5,526
$12,578
$21,579
$33,066 6%
$5,637
$13,181
$23,276
$36,786 7%
$5,751
$13,816
$25,129
$40,995 8%
$5,867
$14,487
$27,152
$45,762 9%
$5,985
$15,193
$29,361
$51,160
10%
$6,105
$15,937
$31,772
$57,275
11%
$6,228
$16,722
$34,405
$64,203
12%
$6,353
$17,549
$37,280
$72,052
3-F 1 1

9. Answers to Exercise 3B ? ? ? ? ? ? 4% $10.40 $10.82 $11.70 $12.65 8%
Interest Rate
1 Year
2 Years
4 Years
6 Years 4%
$10.40
$10.82
$11.70
$12.65 ? ? 8%
$10.80
$11.66
$13.60
$15.87 ? ? ? ?
3-G 1 2 3 4 5 6

10. Rule of 72 72 = 72 = Years Needed to Double Investment Interest Rate
Required =
Years Needed to
Double Investment
3-H

11. Rule of 72: $10,000 Invested INTEREST RATE Year 3% 6% 12% 6 $20,000 12
$40,000 18
$80,000 24
$20,000
$40,000
$160,000
3-I

12. Financial Planning Pyramid
Penny
Stock
Commo- dities
Collectibles
Speculative
Stock / Bonds /
Mutual Funds
Real
Estate
Blue-Chip
Common
Growth
Mutual
Funds
High-Grade
Convertible
Bonds
Preferred
Balanced
Corporate Bonds
or Mutual Funds
Municipal Bonds
Money Market
Accounts
Certificates
of Deposit
U.S. Savings
Insured Savings /
Checking Accounts
Treasury
Issues
Financial Planning Pyramid
Highest Risk
Highest Earnings
Lower Risk
Lower Earnings
3-J

13. The Impact of Higher Returns on Savings and Investments
Rule of 72: The approximate frequency with which $100 doubles at specific interest rates
Interest Rate
6 Yrs.
9 Yrs.
12 Yrs.
18 Yrs.
24 Yrs. 3%
$200 4%
$200 6%
$200
$400 8%
$200
$400
12%
$200
$400
$800
3-K 1 2

14. Dollar-Cost Averaging
One-Time Investment
Dollar-Cost Averaging
Amount
Invested
Share
Price ($)
Shares
Purchased
Amount
Invested
Share
Price ($)
Shares
Purchased
$1,000.00
$20.00
50.00
$100.00
$20.00
5.00
$100.00
$19.50
5.13
$100.00
$19.25
5.19
$100.00
$19.75
5.06
$100.00
$19.20
5.21
$100.00
$18.90
5.29
100/19.78 = 5.06 shares, not 5.08 (second to last row on the right)
Total shares purchased then becomes 51.66, not 51.68
$100.00
$18.00
5.56
$100.00
$18.60
5.38
$100.00
$19.78
5.06
$100.00
$20.90
4.78
$1,000.00
$20.00
50.00
$1,000.00
$19.39*
51.66
3-L
* Average Share Price 1 2 3 4

15. What rich people know about saving (5 min)
The Mental Habit That May Be Keeping You Poor (2 min)
Why The Way You DON'T Think About Money Keeps You Poor (4.5 min)
Learn The Secret Science Of Getting Rich (6 min)
Young Money: Breaking Bad Habits, Yo! | CNBC (2min)
Spending Stupidly (3 min)
Spendster: How to Break Your Bad Spending Habits (3 min) 
Maureen's Impulse Buy (1 min)
3 Forgotten Laws of Saving (13 min)