1. Part 1 Personal Finance

2. 2.4.4.G1 © Take Charge Today – August 2013 – The Fundamentals of Investing– Slide 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Investments - _______ purchased with the goal of providing additional _________ from the asset itself but with the risk of loss

3. 2.4.4.G1 © Take Charge Today – August 2013 – The Fundamentals of Investing– Slide 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Investments have the potential for _________returns

4. 2.4.4.G1 © Take Charge Today – August 2013 – The Fundamentals of Investing– Slide 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Savings Tools = Monetary Assets (___________ – quickly and easily converted to cash) Savings Tools = Monetary Assets (___________ – quickly and easily converted to cash) Investment Tools = Investment Assets (_______________ be easily converted to cash or penalties charged to access the funds ____________) Investment Tools = Investment Assets (_______________ be easily converted to cash or penalties charged to access the funds ____________) Investments are __________ than savings tools

5. 2.4.4.G1 © Take Charge Today – August 2013 – The Fundamentals of Investing– Slide 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona It is recommended that at least ____________ income is dedicated to savings and investments each time income is received

6. 2.4.4.G1 © Take Charge Today – August 2013 – The Fundamentals of Investing– Slide 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona What types of feelings result from saving and investing? Saving vs. Investing SavingInvesting EmergenciesLong-term goals More ____________Less liquid Limited riskHigher ____________ _________ returns (0-4%)________ returns (8-12%) Financial securityNet worth

7. 2.4.4.G1 © Take Charge Today – August 2013 – The Fundamentals of Investing– Slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Total return on investment expressed as a ___________ of the amount of money saved

8. 2.4.4.G1 © Take Charge Today – August 2013 – The Fundamentals of Investing– Slide 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Mandy saved $2,200 in a money market deposit account. After one year, she has a return of $110. What is Mandy’s rate of return? Mandy’s rate of return on investment is 5%

9. 2.4.4.G1 © Take Charge Today – August 2013 – The Fundamentals of Investing– Slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Inflation __________ in the general level of prices Inflation Risk The danger that money ______ be worth as ________ in the future as it is today Strive to have the rate of return on investment be _________ the rate of inflation How does inflation relate to investing?

10. 2.4.4.G1 © Take Charge Today – August 2013 – The Fundamentals of Investing– Slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona What do you already know about each investment tool?

11. 2.4.4.G1 © Take Charge Today – August 2013 – The Fundamentals of Investing– Slide 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Maturity date – specified ________ in the future when the principal amount of the bond is repaid to the bondholder

12. 2.4.4.G1 © Take Charge Today – August 2013 – The Fundamentals of Investing– Slide 12 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona A bond is any _______________or discounted government or corporate security that obligates the issuer to pay the bondholder a specified sum of money, usually at specific intervals, and to repay the principal amount of the loan at maturity. Bondholders have an _____ from the issuer, but ____ corporate ownership privileges, as stockholders do. Municipal bonds are bonds issued by local ____________ to raise money for roads, bridges and other construction projects. ______________ bonds are loans to the issuer of the bond (corporation). When you buy a bond from a company, you are lending money to that company.

13. 2.4.4.G1 © Take Charge Today – August 2013 – The Fundamentals of Investing– Slide 13 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona The price of a Series EE bond is ________ the redemption value at _________, so they are said to be discounted 50 percent. Investors pay $50 for a $100 bond, $1,000 for a $2,000 bond, or $5,000 for a $10,000 bond. They make good gifts because the giver buys the bond for only half the price that the bond will be worth at maturity. The _____________ on US savings bonds is exempt from state and local taxes. Savings Bonds are purchased from the US Government via https://www.treasurydirect.gov/indiv/research/indepth/eb onds/res_e_bonds.htm https://www.treasurydirect.gov/indiv/research/indepth/eb onds/res_e_bonds.htm

14. 2.4.4.G1 © Take Charge Today – August 2013 – The Fundamentals of Investing– Slide 14 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona A ________ of ownership in a company _________ of the stock Usually a stockholder owns a very small part of a company

15. 2.4.4.G1 © Take Charge Today – August 2013 – The Fundamentals of Investing– Slide 15 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

16. 2.4.4.G1 © Take Charge Today – August 2013 – The Fundamentals of Investing– Slide 16 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona Investments are purchased from a ________________ (except for real estate and some speculative investments)