Savings and Investment

Saving, Investing, and Risk Management

by Keri Graybill

​Today I will...

• ​Review different saving and investing options

• ​Review different ways to manage risk

Poll

On a scale of 0 - 100% how confident do you feel about your understanding of saving, investing, and risk management?

• 25%

• 50%

• 75%

• 100%

Open Ended

Why should you always Pay Yourself First (PYF)?

Multiple Choice

When talking about saving money, interest is...

• a fee received or paid for the use of money

• the possibility of financial loss or physical harm

• a share of a corporation sold to the public

• the amount of money originally invested

Multiple Choice

Stocks are insured against loss by most banks and credit unions.

• True

• False

Multiple Choice

Principal is...

• a fee received or paid for the use of money

• the possibility of financial loss or physical harm

• a share of a corporation sold to the public

• the amount of money originally invested

Multiple Choice

Risk is...

• a fee received or paid for the use of money

• the possibility of financial loss or physical harm

• a share of a corporation sold to the public

• the amount of money originally invested

Multiple Choice

By automatically reinvesting dividends, you are buying additional shares and increasing your investment.

• True

• False

Multiple Choice

Stock is...

• a fee received or paid for the use of money

• the possibility of financial loss or physical harm

• a share of a corporation sold to the public

• the amount of money originally invested

Fill in the Blank

An IOU is issued by a company, municipality, or the federal government in exchange for a loan from an investor that will be repaid with a set rate of return. This is also known as a what?

Fill in the Blank

When you invest money you commit a certain amount to gain ...

Poll

Which of the following would you consider an example of Opportunity Cost?

• giving up the next best alternative when making a financial choice

• Choosing not to go to the movies with friends because you are saving up for something

• Buying the newest video game instead of saving for college

• Going to Starbucks instead of saving for your car

Open Ended

Why do people buy insurance policies (health, auto, home, dental, vacation, etc)?

Multiple Choice

Interest is the fee received for the use of money.

• True

• False

Multiple Choice

Andreina wants her savings insured by the FDIC (Federal Deposit Insurance Corporation), which savings option should she use?

• Stocks

• Bonds

• Mutual Funds

• Savings account

Multiple Choice

Protection against risk is the primary reason people purchase this type of policy.

• Auto insurance

• Health insurance

• Home insurance

• All of the above

Multiple Choice

A long-term investment usually means investing for 1-3 months.

• True

• False