Savings and Investing

A pool of money collected from many investors, and used to buy stocks, bonds, and other securities.

• stock

• mutual fund

• bond

• goals

Much less risky

• saving

• investing

Deposit is usually not insured

• investing

• saving

The amount of money you earn compared to the amount of money you invest

• Equity investment

• term

• fixed income statements

• return on investment (ROI)

All are benefits of saving, except

• safe, reliable, convenient

• earns a higher return of interest

• earns a small amount of interest

• insured by the FDIC

Saving and investing provide opportunities to increase your wealth, leading to financial security

• True

• False

Bonds are a safer investment than stocks

• True

• False

Risky investments

• Are meant to make small returns on investment

• May lead to a larger return on investment

• Are always long-term

• Involve checking accounts

Retirement accounts

• Guarantee a specific return on investment

• Are invested in mutual funds or diversified stocks

• Are highly liquid

• Have no penalty for taking out money from them early

A mutual fund is 

• An investment in a diversified group of stocks

• The money left over when reinvested into the company

• An account that guarantees a fixed rate of return

• Exclusively for retirement accounts