Saving and Investing

What is a savings account primarily used for?

• High-risk investments

• Storing money safely while earning a little interest

• Trading low-risk stocks and bonds

• Storing money that you receive from employment and use to pay your bills.

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DOK Level 1: Recall

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

• 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

I have an account with E-trade and I use it to purchase securities (stocks/bonds). Am I saving or investing?

• Saving

• Investing

• Both

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

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

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

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