Saving and Investment Options

A key difference between saving and investing is

• Saving is for everyone, investing is for the wealthy

• Your money is insured when investing, it is not in savings

• Investing has a guaranteed return, savings does not

• Saving is for emergencies & goals, investing is for long-term wealth

Why is it important to start investing as soon as possible?

• You take less risk when you are young, so money will be safe

• You have more time for your money to compound

• Investing is an easy way to make quick money

• Fees on investments are cheaper when you are younger

This is a type of investment where investors pool their money together to buy stocks, bonds, and other securities 

• Diversification

• Mutual Funds

• Pool Party

• Mutual Diversification Portfolio

Which of the following is a way to start investing?

• Purchase stocks on your own

• Pool money into a mutual fund managed by an advisor

• Purchase part of an index fund

• Hire a financial advisor to make a plan for you

• All options are correct

One effect of an increase in the amount of savings in an economy is —

• an increase in consumer spending

• a decrease in retirement investments

• a decrease in the production of goods and services

• an increase in financial resources for business investment

What is the benefit of investing your money vs putting it in a savings account?

• Higher potential returns

• Guaranteed returns

• No risk

• Immediate liquidity

True or false: Depositing money in a bank is low risk.

• True

• False

True or false: Investing in stocks can be high risk.

• True

• False

People should consider saving money for which of the following situations?

• Something special they want to buy

• Emergency situations

• Retirement

• All of the above

When you invest in stocks, mutual funds or bonds, your money is insured.

• True

• False