Savings and Investing

1. Savings and Investing Yes a PowerPoint by, Jon Jedziniak

2. Savings • What is Savings exactly? • Savings accounts are the best way to save money. How so? Well it is so because after putting money into it, lets say at $100 at a time, it will build up and you will have a nice wad of cash sitting there for use of buying what you desire. More preferably use it to pay bills, or in case of emergency. • http://www.savingsaccounts.com/

3. More than one kind of Saving Account? • Yes it is apparent that there are two kinds of Savings accounts. • High Yield Savings Accounts that has higher interest than normal account and has a minimum balance requirement. • A Normal Savings Account normally has no minimum, is a low fee account, and you record all transactions in a small booklet. • Money Market Accounts- Have no problem with access, require a high maintaining balance, interest only loses or gains with the economy. • CDs- Certificate of deposit, has a fixed interest, and if withdrawn before maturing time the interest is deducted. • http://www.mybanktracker.com/bank-news/2009/07/29/types-of-savings-accounts/

4. Hmm…Investing? • Well to put it quite simple, the easiest way to explain Investing is that when you invest money into Stocks, Bonds, Etc., you go ahead and invest your money into possible future gain. • The unfortunate part is that Investing can have it’s downside, not only by just being overall risky but downright dangerous when it comes to scams or companies that fail over night. So to be safe be conscious about decisions or find someone you can trust. • The FDIC (Federal Deposit Insurance Corporation) as of 2014 will only insure $100,000 of a savings account, right now it is $250,000, a stock isn’t insured by anything than yourself if you invest in a stock that fails…YOU FAIL! Maybe not with other stocks though, just that one. • http://www.savingsaccounts.com/ • http://www.investopedia.com/university/beginner/

5. Woah? Wait a sec there's more than one kind of Investing? • Well apparently there is and I’ve had the privilege of finding out when I was 10 years old. • Stocks- The concept is that you own part of a company, since the stock is metaphorically somehow part of it, weird right? • Mutual Funds/Money Market Funds-Is when a company (something like a bank/ stock broker) goes ahead and invests in a bunch of companies and creates a portfolio of them that people can invest in, instead of taking the risk of buying a single stock. This is the same idea as a Money Market Fund that only invests short term bonds. • Bonds- When a company/ government needs money it essentially sells bonds to people promising them their money back plus some interest, so and example would be buy a $25 savings bond, then 10 years down the road when it matures collect the interest (double what you paid). • An Index Fund is another way to invest, but the idea is that instead of the individual stock you are investing in what index that stock is in. • http://www.investopedia.com/university/beginner/beginner5.asp

6. Savings+Investing=FeesWho could have known? • Savings- Inactivity fees,when you don’t use an account what so ever for years.Third Party ATMS (evil),when a bank other than yours has an ATM that you can take money out of but will be charged a fee to use. Maybe if you make too many withdrawals your bank will charge you money, or if you have a check and you give it to someone but don’t have enough money in your account they may charge a fee. • Investing- Fees such as a transaction fee can occur just for buying a stock, the commission the stock broker makes off you (who knew even landsharks existed in the form of brokers?), annual account fees charged for existing in the investing world, surrender charges that lower over the length you have that stock and only applies when that stock is sold. Some others include the Internal Expense (labor fee) that is taken from what you get in turn from investing. • http://www.savingsaccounts.com/ • http://moneyover55.about.com/od/howtoinvest/a/feesexpenses.htm

7. Credit Unions and Banks Credit Unions are run by the members who participate in it, this guarantees a costumers satisfaction because they have a say in the control of the Credit Union, to go through a Credit Union, you are essentially participating as a member and contributing to the company as a whole, with a bank on the other hand you are hiring a stock broker, etc. to help you choose what is right for you. http://hffo.cuna.org/10014/article/2025/html

8. Credit Unions Insured? • The National Credit Union insures Credit Unions, and like banks will insure up to $250,000 of the depositors money, except that this limit was made permanent 9/17/10. http://hffo.cuna.org/10014/article/2025/html

9. Diversification • Diversification is rather simple, it just means that a person should not buy in just one company for stock; but rather buy stock in various companies to insure oneself that if one of the companies invested fails that there other ones will hold them up when they take a fall for the company that fails. • http://www.abcsofinvesting.net/investment-diversification/

10. Compounding • The general concept of Compounding is that if you earn interest say on a savings account and since it adds to your amount already in the account you are also making interest off the interest that is added to your account, thus making this a compounded interest because you make money off the money you already made by having money. • http://www.investopedia.com/terms/c/compounding.asp

11. QUIZZZZZZZZZ • What are the different kinds of savings accounts? • What is Compounding? • Is there fees for using a banks atm that isnt your bank’s? • Are Credit Unions insured and by who? • Why is Diversification important?

12. ANSWERSSSS • There are money market accounts, CDs, High Yield accounts and normal accounts. • Compounding means that you are making money off interest that you have already been paid. • Yes there is because some banks will charge money simply for the use of a computer system (easy way to make money off the masses) • Credit Unions are insured by The National Credit Union for $250,000 which is backed by the government. • Diversification allows one to still keep up in the stock market if a company invested in fails.