1. Section 1: Should I save or invest

2.  Differentiate between the various types of saving and investing accounts based on safety, interest rates, and annual percentage yield  Explain the importance of liquid assets  Describe how investment can protect us against inflation

3.  YES!  Both  Do it now

4.  THE MOST IMPORTANT THING IN PERSONAL FINANCE ◦ 10% of every paycheck should go into a savings account for yourself. You should have enough money to cover 6 months of your payments as emergency money  Once this is covered, INVEST your 10%

5.  This is how much money you make in interest each year from your savings or investment accounts. ◦ If you have $100 in a savings account earning 1% interest, you will earn $1 at the end of the year. Your APY is 1% in this scenario.  This is your number 1 consideration, when deciding to save or invest!

6.  How fast can you get your money? ◦ If its in checking is VERY LIQUID! I can get my money anytime day or night. ◦ If I invest in buying a house, my money is NOT very liquid. I have to wait until the house is sold to get that money… This could take YEARS  ALWAYS have LIQUID money available for emergencies… your car could break down, or you might need bail money. You do NOT want to charge this to a credit card! ◦ AT LEAST ___ months of your debts???

7.  Increase in the general level of prices of society  You want to keep ahead of inflation with your money.

8.  You can invest in anything that has a worth (like a house or business)  Financial investments mean you put MONEY into your investment.  You could also invest time, energy, your skill or knowledge… ◦ What are the financial investments when you “flip a house” ◦ What are other investments you might make?

9.  Differentiate between the various types of saving and investing accounts based on safety, interest rates, and annual percentage yield  Explain the importance of liquid assets  Describe how investment can protect us against inflation  I can prove this by completing:  5.1 (info sheet and worksheet)  5.2 (info sheet and worksheet)