Life or Debt: Tips on Saving and

Investing
Presented by: Michelle Andino
Activity 3: Life or Debt
April 9,2014
What is Saving?
Money put aside for future use
Spend less that you earn
Put aside temporality for short-term use
Make saving easier, use automatic payroll
deductions
What is Investing?
Using savings to earn a financial gain.
Objective: earn money with money.
Savings are permanent rather than temporary.
Saving Tips for Teens
1. Pay attention to your minutes and texts.
2. Start saving early and often.
3. Pack you own lunch its cheaper.
4. Educate yourself about saving and investing.
5. Form an investment club at your school, and as a
group, learn how to save.
Start Saving Early for the Future
Use the Internet and
financial insinuations to
determine the following:
1. How do I get started?
2. How much money
should I invest?
3. What should I invest
in?
4. What is the risk?
The Difference Between Saving and
Investing
Saving:
Readily accessible
Preserve the principal
No penalty for withdrawal
Used to meet short-term
Goals and emergencies
Lower rate of return on principal
Lower risk
Federally insured by FDIC
The Difference Between Saving and
Investing (continued)
Investing:
Not readily accessible
Principle is at risk
Penalty for early withdrawal
Used to meet long-term goals
Higher rate of return on principal
Higher risk
Not federally insured by FDIC
Investments Practice
Try this:
Create a fantasy account of $5,000
Track different investments for a year.
Learn how investments work without
financial risk.
Get others involved: learn together
about business, finance.