1 / 7

Saving and Investing

Saving and Investing. Mr. Mizak Economics Fall 2009. Saving. Define: setting aside of income for a period of time so it can be used later Is saving a good thing for an individual? Is saving good for the entire economy? Answer to both = YES

mahon
Download Presentation

Saving and Investing

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Saving and Investing Mr. Mizak Economics Fall 2009

  2. Saving • Define: setting aside of income for a period of time so it can be used later • Is saving a good thing for an individual? • Is saving good for the entire economy? • Answer to both = YES • When people save, money can be provided for others to invest or businesses to grow

  3. Where can you save? • 1) Under your mattress • Pros/Cons 2) Savings bank - Pros/Cons Statement savings account- At the end of each month, individual gets a statement showing all transactions. This is what most people use

  4. Money Market Account- MMDA pays higher rates of indterest • Trade-off = requite 1,000 to 2,500 minimum balance and limited number of checks that can be used per month • Time Deposits • Certificates of deposit (CD) offer higher interest rates but money must be left untouched for a set period of time (3 months-8 years)

  5. Is your money safe?

  6. What happened in 1929? • After the stock market collapse many peopls’s savings were wiped out. • Out of fear, people rushed to the banks to withdrawal all their money • Often this would cause banks to fail

  7. FDIC • In response, Congress passed the Federal Deposit Insurance Corporation (FDIC) • Depositor’s money is protected up to $100,000. • If an insured institution fails, each depositor will be paid the full amount of their savings up to $100,000.

More Related