1. Savings & investing Foldables

2. Financial Pyramid Speculative Real Estate Commodities Capital Growth Mutual Funds Stocks Bonds Financial Growth Money Market Account Retirement Certificate of Deposit Income Will Insurance Emergency Savings Account Basic Financial Planning (Protection)

3. Savings tools Savings Account Money not spent on current expenses Lower Interest Low Risk Highly Liquid Money Market Deposit Account Money not spent on current expenses More interest Medium Liquidity Low Risk Certificate of Deposit Putting your money into a time commitment account. Higher Interest Financial penalties for early withdrawal

4. Investment tools Bonds A form on loaning your money to the government or a company Low Risk Low liquidity Stocks Purchasing part ownership in a company Medium Risk Low Liquidity Mutual Funds Investing in several different types of investments Medium to Low Risk Low liquidity Real Estate Purchasing Commercial or Residential Property Low liquidity High Risk Speculative Investments High Risk Investments Penny Stocks/Collectables

5. Savings & Investing Vocabulary

6. Risk The possibility that your saving/invest will fail to produce a profit.The possibility that your saving/invest will fail to produce a profit.

7. Return The profit from your savings/investingThe profit from your savings/investing

8. Dividends Your profit when you own Stock (Shareholder/Stockholder)Your profit when you own Stock (Shareholder/Stockholder)

9. Capital Gains Your profit when you sell your asset (Real Estate)Your profit when you sell your asset (Real Estate)

10. Interest The profit from savings/investingThe profit from savings/investing Certificate of DepositCertificate of Deposit Savings AccountSavings Account BondsBonds

11. Liquidity How long it takes for you to get cash out of your account and in your hand.How long it takes for you to get cash out of your account and in your hand.

12. Diversification When you invest your money into several different types of accountsWhen you invest your money into several different types of accounts Some money into:Some money into: SavingsSavings CDCD BondsBonds Etc.Etc.

13. Retirement Saving money while you are working for when you are old enough to stop working (60 years old+)Saving money while you are working for when you are old enough to stop working (60 years old+) Usually Invested (long term goal)Usually Invested (long term goal) Mutual FundsMutual Funds IRA’s (Roth & Traditional)IRA’s (Roth & Traditional) 401K401K Employer SponsoredEmployer Sponsored

14. Simple Interest Earning Interest on the principal investmentEarning Interest on the principal investment Principal x Rate x TimePrincipal x Rate x Time

15. Compound Interest Earning Interest on the Principal and InterestEarning Interest on the Principal and Interest

16. Principal The initial amount of the investment/savingsThe initial amount of the investment/savings

17. The Rule of 72

18. What is does Tells you how long it takes to double your moneyTells you how long it takes to double your money 72 = # of years 72 = # of years % Rate % Rate