Sumer, Carlos, Josh

Definition of Savings

Income not spent

Definition of Investments

The purchase of assets with the goal of increasing future income

Reasons to Save

  • Unexpected events or emergencies
  • Purchasing expensive items with credit

Methods of Saving

Saving Account - Keeps money safe until the owner needs it for emergencies

Money Market Deposit Account - Account that pays a higher interest rate than a savings account

Certificate of Deposit - An account that pays interest on a lump sum of money