Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
0Activity
0 of .
Results for:
No results containing your search query
P. 1
Objective 8.01 Unpacked Content

Objective 8.01 Unpacked Content

Ratings: (0)|Views: 92|Likes:
Published by heatherhaymer

More info:

Published by: heatherhaymer on Jul 08, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

05/12/2014

pdf

text

original

 
7086 Personal Finance Unit D: Managing and Protecting Resources Summer 2010 Page
378
COURSE Personal Finance 7086 UNIT: D Managing and Protecting ResourcesESSENTIALSTANDARD:8.00 C3 11% Apply procedures for managing personal finances.OBJECTIVE: 8.01 B2 4% Understand options for saving and investing.
ESSENTIAL QUESTIONS:
x
How are saving and investing similar, and how are they different?
x
Why do some people find it so difficult to save and invest?
x
What “rules” can help build smart saving and investing habits?
x
What factors should be considered when selecting saving and investing options?UNPACKED CONTENT
Saving and investingSavingInvesting
Definition
x
Saving 
is setting aside presentincome for future use.
x
Savings
is the portion of incomenot spent on consumption.
x
Investing 
is purchasing assets thatearn interest over time.
x
Investments
are assets purchasedwith the goal of increasing income.Primary purpose To make money available for future needsTo make a profit over timeReasons for savingand investing
*
To prepare for emergencies
*
To pay recurring expenses
*
To prepare for major purchases
*
To prepare for future purchases
*
To achieve financial goals
*
To prepare for retirementInterest earnings A bonus or side-benefit The main focusReturnUsually earns lower rates ointerestUsually earns higher rates of interestLiquidityMoney may be withdrawn at anytimeMoney may not be easily accessibleVolatilityUsually not volatile; rates are fixedRate of return and value may changesuddenly and significantlyRiskUsually little risk of losing money Usually more risk, but risks may benecessary to make a profit
Reasons individuals may fail to save/invest
y
 Not being able to meet current needs and wants
y
 Not being aware of how much needs to be saved for future goals
y
Over-relying on credit for emergencies
y
Over-relying on job security and insurance

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->