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SAVING Powered By Docstoc

   Mrs. Wilson
Dayton High School
            What is Income?
• Income is any money you receive. This can
  include money from a paycheck, allowance,
  selling items, etc.
            Income & my Paycheck
• What do I do with my paycheck? Where does all the
  money go?
   –   Mortgage… what’s that?
   –   Electricity/ Utility Bills
   –   Car Payment
   –   Baby Wren =)
   –   Student Loan
   –   Travel
• What do I do with the $$$$ that’s left over????
  What are the benefits of saving?
• Unexpected accidents
  –   Steve-O breaks his arm
  –   Wren gets really sick
  –   I wreck my car
  –   Our air conditioning goes out in August (this actually
• Save for Major Purchases
  – House
  – Car
  – Expensive Trip
       More Benefits of Saving
• Save for Opportunities
   – Your friend asked you to go to Florida with her family
     for Spring Break.
• Save for Flexibility
   – Don’t always have to say “no,” you can buy that
     expensive pair of shoes or go on a nice vacation.
• Save to Achieve your Goals
   – College!!!!! It’s very expensive, lots of $$$$. \
   – Buy a car when you turn 16!
          Saving Strategies
• Pay Yourself First
  – Automatically put money in your account
    when you get paid.
• Save 10% of what you make. If you make
  $100 each week this summer, save $10.
• Have a goal! Save towards your shoes
  that you want, or a vacation you want to
          Saving Accounts
       What Are Your Options?
• Commercial Banks- financial institution that
  serves people and businesses.
• Savings Banks- financial institutions owned by
  their depositors.
  – As owners, depositors earn dividends instead of
• Dividend- a share of the company’s profits.
 More Saving Account Options
• Savings and Loan Associations
  – Specialize in lending money to consumers to buy
  – Provide checking and savings accounts and provide
    loans to businesses.
• Credit Unions
  – Offer memberships to people who share a common
    bond example- UK Credit Union, you had to be a
    student or be employed there to be a member.
  – Not for Profit- these banks do not operate to make
    money like other banks do.
          Deposit Insurance
• Major reason for depositing money in a
  financial institution (bank) is safety. You
  don’t want to put $10,000 or even $1,000
  under your mattress!!!
• What happens if your bank goes out of
  business? Does your money go away?
  – NO!!! Most banks are insured by the
• Federal Deposit Insurance Corporation
  insures money deposited in most banks up
  to a certain amount. (usually $100,000)
    Saving and Interest Rates
• One of the biggest benefits of depositing
  your money into a savings account is the
  money or interest you can earn.
  – Example- $750 deposit @ 3% interest will
    earn me $22.50 extra over one year’s time.

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