Savings+&+Investments

Activity 11

 * SAVINGS/INVESTMENTS **

Short Term - Students should consider how much money they will set aside per month for savings. Students should realize that they cannot possibly allow for every single expense before they happen. Unexpected expenses could come in the form of car repairs, medical care, home improvements, furniture upgrades or sudden travel. In order to prepare for these future costs (which are a certainty) one should put aside money in a savings account that can be easily accessed. A good amount to have put aside is $1000; and once that amount is achieved, increase savings to expenses needed for one-month and then three-months. Plan accordingly for these unexpected expenses so that borrowing or charging to cover costs will not be a necessity. (SOL.GOVT.15.f, 16.c, 17)

Long-Term – Students should consider their economic futures. Retirement planning is something that should start early! Some businesses may provide retirement accounts but not all do. If your chosen job does have a retirement account, how much money are you going to have taken our of your pay check each month? If your chosen job does not have a retirement account, you must come up with some other option. Explain your choice.

Credit – Part of savings is also saving for big-ticket items. When making car payments or house purchases good credit is essential. Each year one may obtain a fee credit report for themselves at [|www.annualcreditreport.com]. You will also need to include 3 things you are going to do to build and/or maintain good credit.


 * Requirements **
 * Identify the current interest rate on personal savings accounts at your bank or whether your employer has a company pension plan or contributes to an IRA for you.
 * Students must allow for both types of savings accounts in their budgets and discuss their financial goals related to these categories.
 * List and describe three ways to build and/or maintain good credit that you are going to exercise.

Savings

 * BB&T
 * StellarOne
 * Suntrust
 * [|Wells Fargo]