Personal Finance Unit 2 Chapter 5 © 2007 Glencoe/McGraw-Hill
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Chapter 5
Banking
What You’ll Learn
 Section 5.1
• Identify types of financial services.
• Describe the various types of financial institutions.
 Section 5.2
• Compare the costs and benefits of different savings
plans.
• Explain features of different savings plans.
• Compare the costs and benefits of different types of
checking accounts.
• Explain how to use a checking account effectively.
Personal Finance Unit 2 Chapter 5 © 2007 Glencoe/McGraw-Hill
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Section 5.1
Financial Services and Institutions
How to Manage Your Cash
Today, with more than 11,000 banks, 2,000
savings and loan associations, and 12,000
credit unions in the United States, you have a
wide array of financial services from which to
choose.
Your choice of financial services will depend on
your:
 Daily cash needs
 Savings goals
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Section 5.1
Financial Services and Institutions
Types of Financial Services
In order to stay competitive in today’s
marketplace, banks and other financial
institutions have expanded the range of services
that they offer.
These services can be divided into three main
categories:
 Savings
 Payment services
 Borrowing
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Section 5.1
Financial Services and Institutions
Savings
Safe storage of funds for future use is a basic
need for everyone.
Some examples of time deposit funds include:
 Money that you keep in any type of
savings account
 Certificates of deposit or CDs
Having a savings account is essential for any
personal finance plan.
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Section 5.1
Financial Services and Institutions
Payment Services
Transferring money from a personal account to
businesses or individuals for payments is a
basic function of day-to-day financial activity at a
bank.
The most commonly used payment service is a
checking account. Money that you place in a
checking account is:
 Called a demand deposit
 Able to be withdrawn at any time, or on
demand
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Section 5.1
Financial Services and Institutions
Borrowing
Most people use credit at some time during their
lives. If you need to borrow money, financial
institutions allow you to:
 Borrow money for a short term by using a
credit card or taking out a personal cash
loan.
 Borrow money for a longer term by
applying for a mortgage or auto loan.
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Section 5.1
Financial Services and Institutions
Other Financial Services
Financial institutions may also offer a variety of
services, such as:
 Insurance protection
 Stock, bond, and mutual fund investment
accounts
 Income tax assistance
 Financial planning services
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Section 5.1
Financial Services and Institutions
Electronic Banking Services
Your bank’s electronic services allow you to:
 Check the status of your account.
 Make a transaction from an ATM, by
telephone, or online.
 Get up-to-date information with personal
financial management software.
Security is the number one issue for online
customers. The way to ensure online security is
to:
 Use a security code, or password.
 Use a customer identification name or
number.
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Section 5.1
Financial Services and Institutions
direct deposit
an automatic
deposit of net pay
to an employee’s
designated bank
account
Direct Deposit
Many businesses offer their employees direct
deposit. Instead of a paper paycheck,
employees receive a printed statement that lists:
 Deductions
 Other information about their earnings
Direct deposit offers a safe way to transfer funds
and saves:
 Time
 Money
 Effort
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Section 5.1
Financial Services and Institutions
Automatic Payments
With your authorization, your bank can withdraw
the amount of your monthly payments or bills
from your bank account.
In order to use automatic payments, you will
need to:
 Make sure you always have enough
money in your account for the payment.
 Arrange your payments according to
when you receive your paycheck.
 Check your bank statements each month
to make sure that the payments were
made correctly.
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Section 5.1
Financial Services and Institutions
automated teller
machine (ATM)
a computer
terminal that
allows a
withdrawal of
cash from an
account
debit card
a cash card that
allows you to
withdraw money
or pay for
purchases from
your checking or
savings account
Automated Teller Machines (ATMs)
A cash machine, or automated teller machine
(ATM), allows you to:
 Withdraw cash from an account
 Make deposits
 Transfer money from one account to
another
To use an ATM for banking, you must apply for
a debit card from your financial institution.
Unlike a credit card, a debit card enables you to
spend only the money that you have in your
account.
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Section 5.1
Financial Services and Institutions
ATM Fees
The fees that some financial institutions charge
for the convenience of using an ATM can add
up over time. You might consider these
suggestions:
 Compare ATM fees before opening an
account.
 Use your bank’s ATM machines to avoid
the additional fees that other banks
charge when you use their machines.
 Consider using traveler’s checks, credit
cards, personal checks, and prepaid cash
cards when you are away from home.
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Section 5.1
Financial Services and Institutions
point-of-sale
transaction
a purchase by a
debit card of a
good or service at
a retail store, a
restaurant, or
elsewhere
Plastic Payments
Although cash and checks are very common
methods of paying for goods and services,
various access cards are also available. These
include:
 Point-of-sale transactions
 Store-value cards
 Electronic cash
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Section 5.1
Financial Services and Institutions
Opportunity Costs of Financial
Services
When you are making decisions about saving
and spending:
 Try to find a balance between your shortterm needs and your future financial
security.
 Consider the opportunity costs, or tradeoffs, of each choice you make as you
select financial services.
Remember to consider the value of your time in
addition to the money you are saving.
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Section 5.1
Financial Services and Institutions
Types of Financial Institutions
After you have identified the services you want,
you can choose from among many types of
financial institutions.
You may select an institution that:
 Offers a wide range of services
 Specializes in certain services
 Provides the option of cyber-banking, or
banking via the Internet
 Operates exclusively on the Internet
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Section 5.1
Financial Services and Institutions
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation
(FDIC):
 Protects deposits in banks
 Insures each account in a federally
chartered bank up to $100,000 per
account
 Administers the Savings Association
Insurance Fund (SAIF) for savings and
loan associations
All federally chartered banks must participate in
the FDIC program.
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Section 5.1
Financial Services and Institutions
commercial bank
a for-profit
institution that
offers a full range
of financial
services, including
checking, savings,
and lending
credit union
a nonprofit
financial institution
that is owned by
its members and
organized for their
benefit
Deposit Institutions
Most people use deposit-type institutions to
handle their banking needs. These institutions
include:
 Commercial banks
 Savings and loan associations
 Mutual savings banks
 Credit unions
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Section 5.1
Financial Services and Institutions
Non-Deposit Institutions
Financial services are also available at
institutions such as:
 Life insurance companies
 Investment companies
 Finance companies
 Mortgage companies
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Section 5.1
Financial Services and Institutions
Comparing Financial Institutions
When you compare banks and other financial
institutions, you should ask these questions to
help choose the best one:
 Where can you get the highest rate of
interest on your savings?
 Where can you obtain a checking
account with low (or no) fees?
 Will you be able to borrow money from
the institution when you need it?
 Does it have online banking services?
 Does it have convenient locations?
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• STOP HERE – The rest is Standard 4
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Section 5.2
Savings Plans and Payment Methods
Types of Checking Accounts
Checking accounts can be divided into three
main categories:
 Regular accounts
 Activity accounts
 Interest-earning accounts
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Section 5.2
Savings Plans and Payment Methods
Regular Checking Accounts
Regular checking accounts usually do not
require a minimum balance. You may have to
pay a monthly service charge, however, if:
 The account requires a minimum balance.
 Your account drops below that amount.
Some institutions will waive a service charge if
you keep a certain balance in your savings
account.
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Section 5.2
Savings Plans and Payment Methods
Activity Accounts
An activity account might be right for you if you:
 Write only a few checks each month
 Are unable to maintain a minimum
balance
The financial institution may charge a fee for:
 Each check you write
 Each deposit
In addition, a monthly service fee will be
charged.
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Section 5.2
Savings Plans and Payment Methods
Interest-Earning Checking Accounts
Interest-earning checking accounts are a
combination of:
 Checking accounts
 Savings accounts
These accounts pay interest if you maintain a
minimum balance.
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Section 5.2
Savings Plans and Payment Methods
Evaluating Checking Accounts
How do you decide which type of checking
account will meet your needs? You will need to
weigh several factors:
 Restrictions
 Fees and charges
 Interest
 Special services
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Section 5.2
Savings Plans and Payment Methods
Restrictions
The most common restriction is the requirement
that you keep a minimum balance. Other
restrictions may include:
 The number of transactions allowed
 The number of checks you may write in a
month
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Section 5.2
Savings Plans and Payment Methods
Fees and Charges
You may pay a monthly service charge as well
as fees for:
 Check printing
 Overdrafts
 Stop-payment orders
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Section 5.2
Savings Plans and Payment Methods
Interest
An interest-earning checking account will be
affected by:
 Interest rates
 Frequency of compounding
 The way in which interest is calculated
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Section 5.2
Savings Plans and Payment Methods
overdraft
protection
an automatic loan
made to an
account if the
balance will not
cover checks
written
Special Services
Checking account services include:
 ATMs
 Banking by telephone and online
As a checking account customer, you may also
receive overdraft protection.
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Section 5.2
Savings Plans and Payment Methods
Using a Checking Account
After you select the type of checking account
that best fits your needs, you need to know how
to use it effectively.
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Section 5.2
Savings Plans and Payment Methods
Opening a Checking Account
Before you open a checking account, decide
whether you want:
 An individual account
 A joint account
Personal joint accounts are usually “or”
accounts, which means that only one of the
owners needs to sign a check.
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Section 5.2
Savings Plans and Payment Methods
Writing Checks
Before writing a check, use your check register
to record the:
 Date
 Number of the check
 Name of the party who will receive the
payment
 Exact amount of the check
Be sure to keep a current balance of the money
you have by deducting from or adding to your
balance the amount of any check transaction.
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Section 5.2
Savings Plans and Payment Methods
Steps in Writing a Check
Follow these steps when you write a check:
 Write the current date.
 Write the name of the party who will
receive the check.
 Record the amount of the payment in
numerals.
 Write the amount in words.
 Sign the check.
 Make a note of the reason for the
payment.
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Writing a Check
Step 1
Step 2
Step 6
Step 4
Step 3
Step 5
Step 1 – Current date
Step 2 – Name (Payee)
Step 3 – Dollar amount (numbers)
Step 4 – Dollar amount (words)
Step 5 – Sign your name
Step 6 – Notes about the
transaction
334
Writing a Check
Step 7 – Write the check number, date,
payee, amount of the check or ATM
transaction.
Step 8 – Subtract amount of check from
the balance.
335
Section 5.2
Savings Plans and Payment Methods
stop-payment
order
a request that a
bank or other
financial
institution not
cash a particular
check
Stop-Payment Order
You may ask the bank to issue a stop-payment
order if:
 A check is lost or stolen.
 You want to take back your payment for a
business transaction.
Fees for this service can range from $10 to $20
or more.
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Section 5.2
Savings Plans and Payment Methods
endorsement
the signature of
the payee, the
party to whom the
check has been
written
Making Deposits
To add money to your checking account:
 Fill out a deposit ticket.
 Endorse the back of each check you
want to deposit.
Here are some tips to follow when endorsing a
check:
 Do not endorse a check until you are
ready to cash or deposit it.
 Use a pen so that your signature cannot
be erased.
 If depositing a check by mail, write “For
deposit only” above your signature.
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Depositing Money Into
Your Account
Step 1 – Write today’s date.
Step 2 – Write down any currency
deposited by the word “Currency.”
Step 3 – Write down any coins deposited
by the word “Coin.”
338
Depositing Money Into
Your Account
Step 4 - Write checks down individually.
Step 5 – Total deposits and write in space
marked “Subtotal.”
Step 6 – Write down cash withdrawn
following the words “Less Cash
Received.”
339
Depositing Money Into
Your Account
Step 7 – Subtract cash received from
subtotal and write that amount after “Net
Deposit.”
Step 8 – If withdrawing cash, sign your
name on the line below the date.
440
Section 5.2
Savings Plans and Payment Methods
Keeping Track of a Checking Account
Each month your bank will send you a statement
that shows your checking account activity for the
month. Your bank statement will list:
 Deposits
 Checks you have written
 ATM withdrawals
 Debit card charges
 Interest earned
 Fees
The balance reported on the bank statement may
be different from the balance in your check
register.
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Section 5.2
Savings Plans and Payment Methods
bank
reconciliation
a report that
accounts for the
differences
between the
bank statement
and a checkbook
balance
Reconciliation
You can fill out a bank reconciliation form to
determine your true balance.
To balance, or reconcile, your account, follow
these steps:
 Compare the checks you have written
during the month with those that are
listed on the bank statement as paid, or
cleared.
 Determine whether any recent deposits
are not on the bank statement.
 Subtract fees and charges listed on the
statement from your checkbook balance.
 Add interest earned to your checkbook
balance.
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Section 5.2
Savings Plans and Payment Methods
Other Payment Methods
You can make payments using methods other
than writing a personal check. Some
alternatives include:
 Certified checks
 Cashier’s checks
 Money orders
 Travelers check
 Prepaid travelers cards
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Standard 5
• Stop Here - this is for Standard 5
Savings Information
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Standard 5.
Savings and Investing:
Getting Started
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Deciding to Save
Decisions about savings
involves opportunity costs.
Opportunity Costs - things
you give up today to fund
your future goals.
Before purchasing, ask
yourself: “Do I want this
more than reaching my
personal or financial goals?”
46
Strategies for Saving
“Pay yourself first” is saving a portion
of your earnings before spending
any.
Saving money can be done in two
different ways.
• In a safe place, where it will earn
interest – such as a savings account
• In government savings bonds, money
market accounts, or certificates of
deposit (CDs)
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Savings Plans and Payment Methods
Types of Savings Plans
To achieve your financial goals, you
will need a savings program. Various
types of savings programs include:
 Regular savings accounts
 Certificates of deposit
 Money market accounts
 U.S. Savings Bonds
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Savings Plans and Payment Methods
Regular Savings Accounts
Regular savings accounts are ideal if you plan to
make frequent deposits and withdrawals. These
accounts:
 Require little to no minimum balance
 Earns Interest
 Allow you to withdraw money on demand
 Are very Liquid
The trade-off for this convenience is that the
interest you earn will be low compared with other
savings plans.
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Savings Plans and Payment Methods
certificate of
deposit (CD)
a savings
alternative in
which money is
left on deposit for
a stated period of
time to earn a
specific rate of
return
Certificates of Deposit
A certificate of deposit (CD) is a relatively low-risk
way to invest your money.
It offers a higher interest rate than a regular savings
account pays, but you will have to accept three key
limitations:
 You may have to leave your money on
deposit for one month to five or more years.
 You probably will pay a penalty if you take the
money out before the maturity date.
 Financial institutions require that you deposit
a minimum amount to buy a certificate of
deposit.
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Savings Plans and Payment Methods
CD Investment Strategies
Here are some tips for investing in CDs:
 Find out where you can get the best rate.
 Consider the economy as you decide what
maturity date to choose.
 Never let a financial institution “roll over” a
CD.
 Consider when you will need the money.
 If you have enough funds to have several
accounts, you might consider creating a CD
portfolio, which includes CDs that mature at
different times.
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Savings Plans and Payment Methods
Certificate of Deposit
• A CD requires a certain amount of time
to mature.
• The longer the term of maturity, the
higher interest rate you will receive.
• CDs are less liquid than savings
accounts
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Savings Plans and Payment Methods
money market
account
a savings
account that
requires a
minimum balance
and earns
interest that
varies from
month to month
Money Market Accounts
The interest rates of a money market
account float, or go up and down, as
market rates change.
Although the interest rate of a money
market account is usually higher than that
of a regular savings account:
 A money market account also requires
a higher minimum balance, typically
$1,000.
 You may have to pay a penalty if your
balance goes below the minimum
amount.
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Savings Plans and Payment Methods
Money Market Mutual Funds
• These are invested in very
short-term investments with low
risk.
• Banks and credit unions insure
through FDIC, while other
institutions do not.
• Uninsured accounts generally
pay a higher interest rate
because of additional risk.
54
Savings Plans and Payment Methods
U.S. Savings Bonds
Another savings option is purchasing a U.S.
Savings Bond. The maturity date of a bond
depends on:
 The date it was bought
 The interest rate the bond is earning
Your bond’s worth will depend on current interest
rates and on the month and year in which the bond
was issued.
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Savings Plans and Payment Methods
US Savings Bonds
• Backed by the U. S. Government.
• Have little or no default risk.
• Designed to be held a minimum number
of years.
• Because of the length of maturity,
government bonds have a higher rate of
return than savings accounts or CDs.
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Investing Plans and Payment Methods
Mutual Funds
• Investors pool money to buy shares of a fund that
invests in many financial products (stocks, bonds, and
securities).
• Great for people with limited funds or knowledge about
investing.
• Have professional money managers who closely
monitor accounts.
• Rate of return is affected by a variety of economic
factors that can vary over time.
• Highly recommended by financial experts because
potential benefit of gains is greater than potential costs
of losing.
57
Investing Plans and Payment Methods
Stocks
• Stocks allow partial ownership in a
company.
• Owning stock carries more risk than
mutual funds.
• Advisable to diversify your portfolio and
spread your risk.
• Investors should own at least ten
different single stocks in different
industries.
58
Investing Plans and Payment Methods
Corporate Bonds
• When you own a corporate bond, you
are basically loaning money to a
company.
• The interest you receive is the value of
your investment.
• If something happens to the company,
you can lose most or all of your money.
• Investing in bonds is a lower risk option
with lower returns on your investment.
59
Investing Plans and Payment Methods
• Collectables
– Are rare items in number
– High risk, not as liquid
• Include: Paintings, sculptures,
other art, Trading cards, sports
motif, coins, toys, and Antiques
60
Investing Plans and Payment Methods
• Real Estate – Not very liquid
– Residential
– Commercial
– Corporate Apartments
– Land
– Farmland
61
Evaluating Savings and Investment Plans
Your selection of a savings or investment
plan will be influenced by several factors.
You should consider:
 The rate of return
 Inflation
 Tax considerations
 Liquidity
 Restrictions
 Fees
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Savings Plans and Payment Methods
rate of return
the percentages
of increase in the
value of your
savings from
earned interest
compounding
the process in
which interest is
earned on both
the principal—the
original amount
you deposited—
and on any
previously earned
interest
Rate of Return
Earnings on savings can be
measured by the rate of return,
or yield.
Compounding can have a great
impact on large amounts of
money that are held in savings
accounts for long periods.
The more frequently your balance
is compounded, the greater your
rate of return will be.
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Rates of Return
Rate of return - amount of money you can
earn when saving and investing.
The higher the average return, the more
risk you are taking as an investor.
Asset Class

Rate of Return*
Common stocks
10%-13%
Stocks of smaller companies
14%-16%
Long term corporate bonds
6.5%-8%
Long term US government bonds
5%-7.5%
Short term US Treasury bills
3.5%-5%
*Average rate of return since 1926, Ibbotson and Associates
64
Savings Plans and Payment Methods
Inflation
You should compare the rate of interest
you earn on your savings with the rate of
inflation.
Usually, the interest rates offered on
savings accounts increase if the rate of
inflation increases.
The biggest problem with inflation occurs if
you are locked into a lower interest rate for a
long period of time.
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Savings Plans and Payment Methods
Tax Considerations
Like inflation, taxes reduce
the interest earned on
savings. You may want to
look into:
 Tax-exempt saving plans
 Tax-deferred savings
plans
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Savings Plans and Payment Methods
Liquidity
Ease of turning an item into cash without
losing money
Check the savings plans you are
considering to determine whether early
withdrawal of funds will cause them to:
 Charge a penalty
 Pay a lower rate of interest
If you are saving for long-term goals, a high
interest rate may be more important than
liquidity.
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Savings Plans and Payment Methods
Restrictions and Fees
Be aware of any restrictions on savings plans, such
as:
 A delay between the time when interest is
earned and when it is actually paid into your
account
 Fees for making deposits and withdrawals
 Service charges you may have to pay if your
balance drops below a certain amount or if you
do not use your account for a certain period
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Highest Risk
Highest Earnings
Financial
Planning
Pyramid
Commo Penny
- dities
Stock
Speculative
Collectibles Stock / Bonds /
Mutual Funds
Blue-Chip
Common
Stock
Balanced
Mutual
Funds
Money Market
Accounts
or Mutual Funds
Insured Savings /
Checking Accounts
Growth
Mutual
Funds
Real
Estate
High-Grade
Preferred
Stock
High-Grade
Municipal Bonds
or Mutual Funds
U.S. Savings
Bonds
High-Grade
Convertible
Bonds
High-Grade
Corporate Bonds
or Mutual Funds
Certificates
of Deposit
Lower
Risk
Lower
Earnings
Treasury
Issues
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Do Review Sheets
Do review sheets
5.1 and 5.3
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Standard 5. 2 Savings
and Investing
Interest Calculations
and The Rule Of 72
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Calculating Interest
Interest:
• Paid when someone else uses your
money.
• Higher the risk, the greater the
return.
Two methods for calculating interest:
• Simple interest
• Compound interest
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Calculating Simple Interest
• Simple Interest Formula:
• Principle X interest X number of years
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Simple Interest Example
1. You save $50 at 10% for 5 years
50 x .10 x 5
= $25 interest earned
$50 + $25 = $75 In Account Now
2. You save $750 at 3% for 8 years
750 x .03 x 8
= $180 interest earned
$750 + $180 = $930 In Account Now
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Simple Interest Examples
3. You save $2,500 at 8% for 20 years
2500 x .08 x 20
= $4,000 interest earned
$2,500 + $4,000 = $6,500 In Account Now
4. You save $10,000 at 5% for 25 years
10,000 x .05 x 25
= $12,500 interest earned
$10,000 + $12,500 = $22,500 In account Now
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Calculating Interest
Compound Interest
• Calculated on money
you invest or loan, plus
any interest already
paid.
• The longer the money is
invested, the more
impact you will receive
from compounding.
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Compounding Interest Formula
M = P( 1 + i
n
)
• M is the final amount including the
principal.
• P is the principal amount.
• i is the rate of interest per year.
• n is the number of years invested.
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Compound Interest Examples
Let's say that I have $1000.00 to invest for
3 years at rate of 5% compound interest.
M = P( 1 + i )n
M = 1000 (1 + 0.05)3
= 1000(1.05)3
= 1000 x 1.157625
= 1,157.63 (round up)
You can see that my $1000.00 is
worth $1157.63.
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Compound Interest Examples
$1000 invested with compound interest at
a rate of 15% per year for 9 years.
M = P( 1 + i )n
M = 1000(1+.15)9
= 1000(1.15)9
= 1000 X 3.517876
= $3517.88 (round up)
You can see that my $1000.00 is
worth $3517.88.
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Compound Interest Examples
Compound interest calculator
http://math.about.com/library/
blcompoundinterest.htm
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Rule of 72
72 divided by the expected rate of
return equals the number of years it
will take the investment to double.
72
Interest Rate
72
Years Needed to
Double Investment
3-H
=
Years Needed to
Double Investment
=
Interest Rate
Required
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The Rule of 72
The Rule of 72 Examples:
• Years needed to double
• 72/6% = 12 years
• 72/3% = 24 years
Interest Rate Required
• 72/9 year = 8%
• 72/10 years = 7.2%
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Earnings
Compounding
interest explains
why it is
important to start
saving NOW!
Understanding
how to get your
money to work for
you will help you
to get the most of
your savings.
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Standard 5. 4
Savings and Investing
Time Is Money
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Time Factors
Time is one of the most
important factors to
consider when making
decisions about savings
or investing.
The longer your “time
horizon,” the more
aggressively you can
invest your money.
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Time Factors
List of asset classes, from least to
more risky:
Fixed Income Items
Bank Accounts
Certificates of
Deposits
Government Bonds
Municipal Bonds
Corporate Bonds
Immediate access to cash,
insured
Time varies based on contract,
insured
Money loaned to U. S.
Government
Money loaned to a municipality
Money loaned to a business
corporation
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Time Factors
Equity Items
Large Cap Stocks
Ownership in large companies
Small Cap Stocks
Ownership in small companies
International Stocks
Ownership in international
companies
Commodities
Ownership of hard assets
Microcap Stocks
Ownership in very small companies
with a high rate of failure
In general, fixed income items are
associated with “loaning” your money to
someone else.
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Time Factors
Fixed income items tend to have low
risk, and therefore, pay lower interest
rates.
Equities are generally associated
with “ownership.”
Financial experts recommend
equities as the better option if you
have at least seven years until your
financial goal.
888
Risk Factors
• Risk tolerance relates to how much
negative change or potential for loss
you can handle with your investment.
• Portfolio is a common name given to
all of your personal assets.
• Losses in your portfolio can be
difficult to replace.
89
Risk Factors
• That is the reason most financial
experts recommend investments with
less risk to meet short-term goals.
• Choosing low risk investments to meet
long-term goals is not the best option.
• Low risk savings and investments
have less potential for growth than
equity items, which could leave you
short of your long-term goals.
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Inflation Factors
• Leaving unspent money in a noninterest bearing checking account
can result in a loss of money.
• Inflation - increases in average prices
of goods and services from one year
to the next.
• If you are not earning interest,
your savings may not keep up with
future prices.
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REMEMBER
Is your “savings goal” seven or more
years away? Investing is a good way to
make money.
Or is your “savings goal” less than
seven years away? Probably better to put
your money in a savings account or shortterm CD.
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Earnings
Lots of options are available for saving
and investing your money.
Remember to consider the following in
making your choices:
• Time horizons,
• Risk tolerance, and
• The impact of inflation.
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