Presentation is loading. Please wait.

Presentation is loading. Please wait.

Monday, November 16, 2015 Objective: Students will be able to examine the types of accounts available to consumers from financial institutions and the.

Published byNeil Carroll Modified over 6 years ago

Similar presentations

Presentation on theme: "Monday, November 16, 2015 Objective: Students will be able to examine the types of accounts available to consumers from financial institutions and the."— Presentation transcript:

1 Monday, November 16, 2015 Objective: Students will be able to examine the types of accounts available to consumers from financial institutions and the risks, monetary costs, and benefits of maintaining these accounts. Purpose: Many of you have or will have financial accounts.

2 Roles of Interest and Risk
the higher the interest rate offered for savings, the more money will be available for savings the lowering the interest rate lowers the amount of money available for saving Risk: The chance that an investment's actual return will be different than expected the riskier an investment is, the higher the interest is

3 Certificates of Deposits
Type of Account Definition Risk Costs Benefits Checking Account Savings Account Certificates of Deposits Money Market Funds IRA Accounts Mutual Funds

4 Checking Accounts Accounts that allow for numerous withdrawals and unlimited deposits Risks: insured by FDIC Costs: fees (lower or none with minimum balance) Benefits: don't have to carry cash, can be jointly held

5 Savings Account Accounts that provide principal security and a modest interest rate generally for money that you don't intend to use for daily expenses Risks: insured by FDIC Costs: makes your money less accessible Benefits: earn interest (often a small amount of money)

6 Certificates of Deposits
issued by a bank to a person depositing money for a specified length of time Risks: insured by FDIC Costs: money tied up for a period of time, penalty for withdrawal Benefits: constant interest rate (depends on the health of the economy)

7 Mutual Funds made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets Risks: not insured by FDIC Costs: fees, can lose money, taxable Benefits: safer than stocks, experts choose several companies to invest in

8 Money Market Funds open-ended mutual funds that invest in short-term debt securities such as US Treasury bills Risks: insured by FDIC Costs: lower interest than CDs, high minimum amount, can write a limited amount of checks Benefits: no fixed interest rates (depends on the health of the economy)

9 Individual Retirement Accounts
investing tools used by individuals to earn and earmark funds for retirement savings Risks: insured by FDIC Costs: rules and penalties for early withdrawal Benefits: tax deductions

10 Certificates of Deposits
Types of Financial Accounts Type of Account Definition Risk Costs Benefits Checking Account Savings Account Certificates of Deposits Mutual Funds Money Market Funds IRA Accounts

Download ppt "Monday, November 16, 2015 Objective: Students will be able to examine the types of accounts available to consumers from financial institutions and the."

Similar presentations

MANAGING MONEY INVESTMENTS & RETIREMENT SENIOR ADVISORY March, 2014.

MANAGING MONEY INVESTMENTS & RETIREMENT SENIOR ADVISORY March, 2014.
Saving and Investing Tools Carl Johnson Financial Literacy Jenks High School.

Saving and Investing Tools Carl Johnson Financial Literacy Jenks High School.
© Family Economics & Financial Education – Revised November 2004 – Saving Unit – Managing Your Cash Funded by a grant from Take Charge America, Inc. to.

© Family Economics & Financial Education – Revised November 2004 – Saving Unit – Managing Your Cash Funded by a grant from Take Charge America, Inc. to.
Investing 101. Types of Savings tools Savings Account: An interest-bearing account (passbook or statement) at a financial institution. Certificates of.

Investing 101. Types of Savings tools Savings Account: An interest-bearing account (passbook or statement) at a financial institution. Certificates of.
Cash Or Liquid Asset Management. Financial Institutions Deposit-Type Financial Institutions – Commercial Banks – Savings and Loan Associations – Savings.

Cash Or Liquid Asset Management. Financial Institutions Deposit-Type Financial Institutions – Commercial Banks – Savings and Loan Associations – Savings.
Investing Opportunities Using Investment Opportunities as a Means to Increase Individual Wealth.

Investing Opportunities Using Investment Opportunities as a Means to Increase Individual Wealth.
A certificate issued by a bank depositing money in an account for a specified period of time (often six months, one year, or two years); a penalty is.

A certificate issued by a bank depositing money in an account for a specified period of time (often six months, one year, or two years); a penalty is.
CHAPTER 8 SAVING Plan for Financial Security

CHAPTER 8 SAVING Plan for Financial Security
Savings Tools Subtitle. Goal: Determine the savings tool most appropriate for reaching a financial goal. Savings Tool: secure and liquid accounts offered.

Savings Tools Subtitle. Goal: Determine the savings tool most appropriate for reaching a financial goal. Savings Tool: secure and liquid accounts offered.
© Family Economics & Financial Education – Revised April 2008– Saving Unit – Managing Your Cash Funded by a grant from Take Charge America, Inc. to the.

© Family Economics & Financial Education – Revised April 2008– Saving Unit – Managing Your Cash Funded by a grant from Take Charge America, Inc. to the.
5.1 Savings and Investing 5.2 The Rule of 72 Getting Started.

5.1 Savings and Investing 5.2 The Rule of 72 Getting Started.
Investments Who wants to be a millionaire?. What kind of an investor are you?  Rate all investment options according to three characteristics:  Safety.

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.

Why It’s Important Savings accounts allow you to put money aside and help make your money grow.
Managing Your Cash.

Managing Your Cash.
Investment You will not be able to work forever and saving for retirement becomes a must = financial goals must be made for financial security. Investing.

Investment You will not be able to work forever and saving for retirement becomes a must = financial goals must be made for financial security. Investing.
Pay Yourself First.

Pay Yourself First.
Introduction to Saving. Saving Basics Savings is the portion of current income not spent on consumption. Recommended to have a minimum of 3-6 months salary.

Introduction to Saving. Saving Basics Savings is the portion of current income not spent on consumption. Recommended to have a minimum of 3-6 months salary.
© Family Economics & Financial Education – Revised April 2008– Saving Unit – Managing Your Cash Funded by a grant from Take Charge America, Inc. to the.

© Family Economics & Financial Education – Revised April 2008– Saving Unit – Managing Your Cash Funded by a grant from Take Charge America, Inc. to the.
© Family Economics & Financial Education – Revised November 2004 – Saving Unit – Managing Your Cash Funded by a grant from Take Charge America, Inc. to.

© Family Economics & Financial Education – Revised November 2004 – Saving Unit – Managing Your Cash Funded by a grant from Take Charge America, Inc. to.
© Family Economics & Financial Education – Revised April 2008– Saving Unit – Managing Your Cash Funded by a grant from Take Charge America, Inc. to the.

© Family Economics & Financial Education – Revised April 2008– Saving Unit – Managing Your Cash Funded by a grant from Take Charge America, Inc. to the.

Similar presentations

Ads by Google