1. How to make your money grow!

2.  Savings Account ◦ Completely safe ◦ High liquidity ◦ Low rate of return  Certificate of Deposit (CD) ◦ Completely safe if insured by FDIC ◦ Must not take it out before time is up ◦ Minimum amount of $500 or more  Money Market Account ◦ Make sure it is FDIC ◦ Minimum amount required to open and must keep a higher daily balance ◦ Restricted access

3.  U.S. Savings Bonds ◦ Completely safe ◦ Buy with as little as $25  Stocks ◦ More risk, no guarantees ◦ Greater chance for higher returns ◦ Choose companies carefully

6.  Future Value is what your money will be worth at some time in the future.  It matters WHEN you begin saving and the rate of return you earn.  How do you find money to invest? ◦ Begin by figuring out how much you spend. ◦ Identify ways you could cut back. ◦ Use gifts and unexpected income. ◦ Sell things you no longer use. ◦ Shop wisely. ◦ Make things last longer, use it up and wear it out!

7. $ 5 ? $ 10 ? $ 25 ? $ 50 ?

8. Monthly Save/Invest $ 5 $10 $25 $50 Future Value Chart: Based on 10% rate of return, compounded annually Total out of pocket $$$ $ 900 $ 1800 $ 4500 $ 9000 Value in 15 years $ 2100 $ 4200 $ 10,500 $ 21,000 Value at retirement $ 67,200 $ 134,400 $ 336,000 $ 672,000

9. investment 6 12 18 24 30 36 Use the RULE of 72 to determine how fast your money will double. Divide the rate of return/interest rate into 72 to get the approximate time needed to double your money. 2 % 2,000 4,000 6 % 2,000 4,000 8,000 16,000 12 % 2,000 4,000 8,000 16,000 32,000 64,000 128,000

10. If not now, then WHEN?