Life or Debt: Tips on Saving

and Investing
Presented by: Michael Chhay
Activity 3: Life or Debt
April 8, 2014
What is Saving?
Money put aside for future use
Spend less than you earn
Put aside temporarily for short-term use
Make saving easier: using automatic payroll
deductions
What is Investing?
Using savings to earn a financial gain
Objective: earn money with money
Savings are permanent rather then temporary
Saving Tips for Teens
1. Pay attention to your minutes and texts.
2. Start saving early and often.
3. Pack your own lunch its cheaper.
4. Educate yourself about saving and investing.
5. Form a an investment club at your school and, as a
group, learn how to save.
Start Saving Early for the Future
Use the Internet and
financial institutions to
determine the following:
1. How do I get started?
2. How much money should I
invest?
3. What should I invest in?
4. What is the risk?
The Difference Between Saving and
Investing
Saving:
Readily accessible
Preserve the principal
No penalty for withdrawal
Used to meet short-term goals and
emergencies
Lower rate of return on principal
Lower risk
Federally insured by FDIC
The Difference Between Saving and
Investing (continued)
Investing:
Not readily accessible
Principal is at risk
Penalty for early withdrawal
Used to meet long-term goals
Higher rate of return on principal
Higher risk
Not federally insured by FDIC

Investment Practice
Try this:
Create a fantasy account of
$5,000
Track different investments for a year
Learn how investments work without
financial risk
Get others involved: learn together about
business, finance.