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PowerPoint #3

PowerPoint #3. Economics Unit 3 Investing and Saving. Videos on this PPT. This PowerPoint has 17 short videos. Watch each one and summarize on your notes These videos are VERY important – not just for the test but for your LIFE!!!!

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PowerPoint #3

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  1. PowerPoint #3 Economics Unit 3 Investing and Saving

  2. Videos on this PPT • This PowerPoint has 17 short videos. • Watch each one and summarize on your notes • These videos are VERY important – not just for the test but for your LIFE!!!! • You need to understand these concepts to better navigate your life as an adult – which starts in just a few months…

  3. Essential Questions:(you don’t need to write them all down but you do need to answer them) • Compare and Contrast renting or buying a home. - What option would you choose? • Compare and contrast CD’s, stocks, and mutual funds? • What would you be most interested in investing in? • Compare and Contrast IRA’s, Roth IRA’s, 401k’s, 403b’s, and Treasury Bonds • What do you think is the smartest place to put your money • Why is diversifying so important?

  4. Renters usually sign a lease. • Be aware of the clauses in your lease; read it carefully. • Some tenants must place a refundable security deposit in case of damaged property or unpaid rent. • You will need the cash down payment and closing costs. • Mortgages involve down payments and interest. • Be aware of points or fees paid to the lender. • Property tax, homeowners insurance, and mortgage insurance are often included. • Can earn equity! https://www.youtube.com/watch?v=bQ-vD8TyIJY

  5. Investing • Time Deposits:a savings plan or certificates of deposit (CDs) with a high interest rate that increases over time, but a person cannot remove funds before a certain time period or maturity without paying a penalty. • https://www.youtube.com/watch?v=rU1k6Xz6W5M • Maturity: the date when the principal and interest is paid off (for loans or investments). • https://www.youtube.com/watch?v=i1H4oqo1jJE

  6. Capital - Taxes • Capital Gains: profits made from the increase in value of an investment over time. Must sell the investment to access the profits. • Capital Losses: losses from the reduction in value of an investment over time. • https://www.youtube.com/watch?v=J5Y51FAqCXE

  7. Investing • Stocks: a share of ownership in a company that is traded on the stock market. • https://www.youtube.com/watch?v=Snsapamg8CU • Mutual Funds: a group of stocks managed by a financial institution or broker.

  8. Savings/Retirement • Pension Plans: Long term savings plans for retirement. Some are private and some are provided by employers. • IRAs https://www.youtube.com/watch?v=Q4gxHArR7P8

  9. Savings/Retirement • 401Ks • https://www.youtube.com/watch?v=tP4zWCS4dMM • 403Bs • https://www.youtube.com/watch?v=Oi9bOeZfgMc

  10. Investing • Treasury Bonds/Bills: Investments purchased from the government that require partial payment upfront for a repayment with stated interest over a period of time. • https://www.youtube.com/watch?v=12Oob2Ik9tU • New York Stock Exchange: Largest stock exchange in U.S., located on Wall St., most large publicly traded companies trade here. • https://www.youtube.com/watch?v=g9mYUt2wfJU • High-speed trading : • https://www.youtube.com/watch?v=2u007Msq1qo

  11. Want to work on the Stock Exchange? • https://www.youtube.com/watch?v=EX33ZpRPoUU

  12. Dow –Jones and Nasdaq • Dow-Jones Industrial Average: The average daily increase or decrease in the value of a group of stocks from various industries. Used to indicate overall stock performance for the day. • https://www.youtube.com/watch?v=6P2sIQxh_NQ • Nasdaq: Created by the National Association of Securities Dealers (NASD) to enable investors to trade securities on a computerized, speedy and transparent system • https://www.youtube.com/watch?v=MgIXhvi8Djk

  13. Diversification: Spreading out your investments into various accounts, stocks, mutual funds, etc. • https://www.youtube.com/watch?v=Z8qGf3_d3PQ

  14. Risk vs. Return Investments • https://www.youtube.com/watch?v=xAWxKk9tUME

  15. Financial Institutions • Commercial Bank: Commercial Banks offer the widest range of services. • Savings and Loan:Savings and Loan Associations often have lower interest rates than commercial banks. • Credit Union: Credit Unions are owned and operated by their members; generally have higher interest rates for savings and lower rates for loan. • Finance Companies: collect debt for stores’ installment loans; generally have very high interest for loans. • https://www.youtube.com/watch?v=dSSH82DdMH4

  16. Answer each of these Essential Questions:(you don’t need to write them all down but you do need to answer all of them) • Compare and Contrast renting or buying a home. - What option would you choose? • Compare and contrast CD’s, stocks, and mutual funds? • What would you be most interested in investing in? • Compare and Contrast IRA’s, Roth IRA’s, 401k’s, 403b’s, and Treasury Bonds • What do you think is the smartest place to put your money • Why is diversifying so important?

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