1. May 17 & 18 Objectives Reminder Today’s Agenda
(76) Compare savings & investment options.
Reminder
Today’s Agenda
1. Savings and Investments PowerPoint + Notes. Save or Invest Worksheet.
Closure
Do you think that you are more inclined to be a saver or an investor? Why?
BRO Time: Explain the difference between savings and investments. What is one example of an investment?

2. Compare savings and investment options.
Task 76

3. Savings Tools – secure and liquid accounts offered by depository institutions
Liquidity – how quickly an account can be turned into cash

4. Money Market Deposit Account Certificate of Deposit
Savings Tools
Checking Account
Savings Account
Money Market Deposit Account
Certificate of Deposit

5. Gallery Walk Savings Tools (pg. 1) Investments (pg. 2) Definition
Interest Rates
Liquidity (high or low)
Features & Benefits
Definition
Other Information (i.e., restrictions)
Risk (high or low)
Return (high or low)

6. Can an account be both secure and liquid?
Think about it!

7. Ideal for Storing Emergency Savings
Insured depository institutions offer accounts which are:
Secure
Accounts must stay within FDIC / NCUA insurance coverage limits
Liquid
Generally quick and easy to withdraw money

8. Savings Tools Characteristics
Interest
Liquidity
Features
Each savings tool has different characteristics
Goal: Determine the savings tool most appropriate for reaching a financial goal

9. Why is it important to be able to withdraw money from a savings account? What kind of restrictions might be placed on a secure account?
Think about it!

10. Investment Tools

11. Investment Tools Characteristics
Financial Plan
Savings
Investments
Investments -assets purchased with the goal of providing additional income from the asset itself but with the risk of loss

12. All Investments Have Some Risk
Return
Profit or income generated by saving and investing
Trade off
Higher returns
Higher risk (chance of loss)
Investment Risk
Possibility that an investment will fail to pay the expected return
Investments have the potential for higher returns

13. Investment Tools
Bonds
Stocks
Mutual Funds
Retirement Accounts

14. Compare & Contrast Saving Investing Use Liquidity Risk Return
Purpose/Goal
Have students volunteer answers for this chart prior to displaying next slide.

15. Saving vs. Investing Saving Investing Use Emergencies Long-term goals
Liquidity
More liquid
Less liquid
Risk
Limited risk
Higher risk
Return
Lower returns (0-4%)
Higher returns (8-12%)
Purpose/Goal
Financial security
Increased net worth

16. With a partner sitting near you, answer the four questions at the end of your notes.
Think about it!

17. Save or Invest?
Formative Assessment
Complete the worksheet on the back of your note guide. When finished, raise your hand.

18. GO TO: www.themint.org Click on Tips for Teens tab Click on Savings
Read Savings Tricks
Play the savings games
GO TO: