Upload File

saving and investing why save? and how?. teacher/parent interview do you have a written budget? what...

  • Home
  • Documents
  • Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial
51
Saving and Investing Why Save? And How?

Upload: frederick-phelps

Post on 27-Dec-2015

217 views

Category:

Documents


0 download

Report

TRANSCRIPT

Page 1: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Saving and Investing

Why Save? And How?

Page 2: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Teacher/Parent Interview

• Do you have a written budget?• What strategies do you use to allocate your

financial capital(money)?• Do you have a plan to save money?• What are the biggest obstacles to saving

money?• Do you have any investment accounts?• Give one example of an investment account

that you use.

Page 3: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Key Vocabulary

• Disposable Income

• Discretionary Income

• Fixed Expenses

• Variable Expenses

• Tradeoffs

• Opportunity Cost

• Budget

Page 4: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Why?

• Large Annual or Semi-annual Payments

• Examples:

• Car insurance

• Property Taxes

• Vacation / Christmas

Page 5: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Why?

• Unexpected Expenses

• Examples:

• Speeding ticket

• Car trouble

• Home repairs

Page 6: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Why?

• Major Purchases

• Examples:

• Car

• Furniture / Appliances

• Engagement Ring

• Down Payments

Page 7: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Why?

• Future Expenses

• Examples:

• Children

• College

• Retirement

• Funeral

Page 8: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Why?

• To accumulate wealth

Page 9: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

How?

1. Savings Account

• Low interest

• High Liquidity

• FDIC protected

• Emergency Fund

• Life Change Fund

Page 10: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

How?

2. Money Market

• Little more return (yield) than SA

• Less liquid– Limits on withdraws– Minimum balances

• Can write checks

Page 11: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

How?

3. Time Deposits

• Examples: CD, Savings Bonds, Gov’t Securities

• Time requirements called maturity dates

• Longer the maturity date or higher the minimum balances the higher the yield.

Page 12: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Savings Bonds

• Pay less than face value now - collect face value at maturity.

• Rule of 72

• Example: $50 savings bond that pays 4%. 72/4 = 18 (reaches maturity in 18 yrs).

Page 13: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Government Securities

• T-Bills - short-term (3m - 1 yr) high minimum.

• T-Notes (1 - 10 yrs) $1000 - $10,000

• T-Bonds (10+ years) $1000 increments.

Page 14: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

How?

4. Corporate Bonds

• Little to a lot more risk.

• You are basically a lender to the corporation.

• Bond Ratings - AAA, AA, A, BBB, etc

• Junk Bonds - extreme risk, basically worthless.

Page 15: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Bond Listing

Page 16: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

How?

5. Mutual Funds• Investment into Company Stocks• Diversification• Way to invest without putting all your

eggs in one basket.• Less control over who you are investing

in, but still have control over what type investing you do.

Page 17: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Mutual Fund

• A mutual fund is a professionally managed investment that pools money from many investors and invests in stocks, bonds, & other mutual funds. The mutual fund will have a fund manager that trades (buys and sells) the fund's investments in accordance with the fund's investment objective.

Page 18: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Answers to FE - 17

• 1075 1090 91,92,93• 1153 1068 90, 94-99• 1242 1100 safer, better short term• 1335 1276 long-term better return• 1435 1506• 1543 1807• 1659 2150• 1783 2774• 1917 3162• 2061 4396

Page 19: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

How?

6. Stocks

• Ownership in a company

• Buy low sell high

• Dividends

• Broker - go between for buyers and sellers in the market.

Page 20: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Exchanges

• NYSE

• NASDAQ

• AMEX

• Regional Exchanges

• World Exchanges

Page 21: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Index

• Gives you an idea on how the whole market is doing.

• Examples:• Dow Jones Industrial Average• S&P 500 (100)(50)• Internet 50• Bull and Bear

Page 22: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Investment Game

Google – NYSE, Small Cap Companies

Pick 3, write down stock symbol

Open New Window

www.yahoo.com

Go to Finance

Enter Stock Symbol

Write down current Price

Go to Historical Prices

http://www.yahoo.com/
Page 23: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Common stocks 10%-13%

Stocks of smaller companies

14%-16%

Long term corporate bonds

6.5%-8%

Long term US government bonds

5%-7.5%

Short term US Treasury bills

3.5%-5%

Page 24: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Commodities

• Agricultural Products (Pork Bellies, soybeans)

• Precious Metals (Gold, silver)

Page 25: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Other Investments

• Real Estate• Annuities / Pension Plans

– 401k– 403b– IRA (Roth IRA) Tax Free– Keogh Plans

• College Plans– 529 Plan

• Small Business

Page 26: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Saving vs Investing

• Saving - putting money aside for future expenses

• Investing - putting money aside for the purpose of making money

Page 27: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Capital Gains/Losses

• Capital Gains - tax on money made through investments.

• Capital Losses - deduction on taxes

Page 28: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Where to invest?

• 1. You have $5000 to invest. No other information is available.

• 2. You have $4000 that you will need six months from now

• 3. You inherited $10000 from a great-aunt; she has suggested that you save it for use in your old age.

Page 29: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Where to invest?

• 4. You are just starting a career and can save $50 per month for retirement.

• 5. A new baby arrives, and mom and dad plan to save $100 a month for the child’s college education.

Page 30: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Quiz

• Which has more liquidity?

• CD or Money Market

• Which has more liquidity?

• Savings Account or Checking

• Which has more liquidity?

• T-bill or T-Bond

Page 31: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Quiz

• What is the relationship between liquidity and rate of return?

• Which has more risk?

• Mutual Fund or Stocks

• Which has more risk?

• AAA Bond or AA Bond

Page 32: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Quiz

• Which has more risk?

• Junk Bond or Mutual Fund

• What is the relationship between risk and rate of return?

• What plan would someone who is self-employed use to defer taxes?

• What type of IRA is Tax free?

Page 33: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Which is harder to get?

• Secure loan or

• Unsecured loan?

• Why?

• Collateral

Page 34: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Goods that last 3 or more years?

• Durable

• Opposite of durable goods?

• Consumption or perishable goods

Page 35: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

The “T” in T-Bills stands for:

• Treasury

Page 36: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

How do Savings Bonds pay their interest?

• Pay less than face value, then when bond matures, you get face value.

Page 37: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Pension plan for self employed?

• Keough plan

Page 38: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Spreading out investments to lessen risk?

• Diversification

Page 39: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Finance company that specializes in home loans?

• Mortgage Company

Page 40: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Which should come first?

• Saving or

• Investing

Page 41: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Cost of credit expressed in dollars and cents?

• APR or

• Finance charge

Page 42: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Financial institution that is member owned?

• Commercial bank or

• Credit Union

Page 43: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Credit cards are issued by?

• Banks or

• Credit card companies

• Is a debit card the same as a credit card?

Page 44: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

What happens to the monthly payment when you decrease

the length of loan?• Increases

• Total of payments?

• Decreases

Page 45: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

A Roth IRA is?

• Tax deferred or

• Tax free

Page 46: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Which has more risk?

• Mutual fund or

• Bond

• Lender?

• Bond

• Owner?

• Stock

Page 47: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

The Dow Jones is a?

• Stock Index or

• Stock Exchange

Page 48: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Largest exchange?

• NYSE

• Name another exchange.

• NASDAQ or AMEX

Page 49: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Payment from company to shareholders?

• Dividend

• IF you make money on an investment it is called?

• Capital Gain

Page 50: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Advantages of retirement plans

• Tax deferred

• Tax free

• Other names for retirement plans?

• IRA

• Annuity

• Pension plan

• 401K, 403B, Keough plan

Page 51: Saving and Investing Why Save? And How?. Teacher/Parent Interview Do you have a written budget? What strategies do you use to allocate your financial

Which would be higher?

• Interest earned or

• Interest paid


Do schools in rural and nonrural districts allocate

Which adjectives would you allocate to the judges?

Apportion, distribute allocate. unplanned, unpremeditated spontaneous

Using Prices to Allocate Resources at Access Points

HOW DO WE ALLOCATE WELFARE BENEFITS? Means Tested and Universal Benefits

AS How markets and prices allocate resources

Cobit 3 ds.06 (identify and allocate costs)

Consider Starting with 160 k of memory do: Starting with 160 k of memory do: Allocate p1 (50 k) Allocate p1 (50 k) Allocate p2 (30 k) Allocate p2 (30 k)

Get HMRC ready expenses - Allocate Global

Incident 102 091089 0P4909 ALLOCATE ACTION PRINThillsborough.independent.gov.uk/repository/docs/SYP000128220001.pdf · Incident 102 091089 0P4909 ALLOCATE ACTION PRINT ... Incident

Print version Getting Started with Bug Club online! · each book-title (or click select all if you want to allocate all the books you have found). Then click Allocate and choose whether

Planner App -- Create. Update. Allocate. Report

Pre-Work Instructions & Goals - Tom Peterstompeters.com/pdfs/WOWPrework.pdf · you love! Pre-Work Instructions & Goals ... If you have no points to allocate to a sentence, please

6.096 Lecture 8: Memory Management - Karlstad University · The new operator •Another way to allocate memory, where the memory will remain allocated until you manually de-allocate

How do voters allocate costly attention to alternative

Tax Distribution 2016 - Microsoftencoreproducts.blob.core.windows.net/encoreproducts/Tax... · 2016-12-23 · Processing documents—you can allocate tax refundable percentages when

Call tracking: Basics and beyond - Marchex€¦ · limited data, you can allocate precious marketing dollars precisely. You can test different messages for effectiveness, or any unique

MISTRAL: A game-theoretical model to allocate security

A BASIC QUESTION How do you allocate scarce resources among competing needs and wants?

Unit 9 Vocabulary Level E. allocate DEF = (v.) to set apart or designate for a special purpose SYN = assign, allot, apportion When you ALLOCATE money,

Do you know why you do the things that you do? Well? Do you?

Boost Sales More Effectively Allocate Marketing Dollars ...aai-agency.com/your-adv/AAIAnalytics.pdf · More Effectively Allocate Marketing Dollars Gain Customer & Prospect Insights

DO U.S. FINANCIAL MARKETS ALLOCATE CREDIT EFFICIENTLY.pdf

Allocate User Guide - ecfinfo.com

Do Conglomerate Firms Allocate Resources … and Phillips 2002.pdfTHE JOURNAL OF FINANCE * VOL. LVII, NO. 2 * APRIL 2002 Do Conglomerate Firms Allocate Resources Inefficiently Across

A.S. Meets to Allocate Funds March 3, 2015

Using auctions to allocate chores (Work In Progress)lcioni/.../Beamer_Auctions_PresentazioneIschia.pdf · Using auctions to allocate chores (Work In Progress) Lorenzo Cioni Department

Lim Sei Kee @ cK. Allocate the time you need to do certain parts of the Business Plan - Use calendar / Planner / Diary / Journal - Create a deadline

· PDF file · 2014-09-24So how do you decide how to allocate all resources ... family structure, social structure, and even the very soul and thoughts of the individual." Richard

Diagram Diagram 1 Text Diagram 2 Text. Click to edit Master title style Text You may want to allocate one slide per competitor Text You may want to allocate

What Is Organizational Behaviour?. What Managers Do Managerial Activities Make decisions Allocate resources…

Utilities (electric & natural gas) allocate

How do you allocate memory to store your data structures?smallmemory.com/6_AllocationChapter.pdf ·  · 2018-04-22How do you allocate memory to store your data structures? ... uses

Allocate Software

How Does Free Enterprise Allocate Resource?