13. Your Definitions… Think of a def. for both savings and investing and write under“My Definition”.
14. Definitions of “Savings” “…the amount left over when the cost of a person's consumer expenditure is subtracted from the amount of disposable income that he or she earns in a given period of time.” Dictionary.com, Financial Dictionary
15. Definitions of “Savings” “For those who are financially prudent, the amount of money that is left over after personal expenses have been met can be positive...those who tend to rely on credit and loans to make ends meet will have negative savings. Savings can be turned into further income through investing.”
16. Definitions of “Savings” Personal saving: (S) Saving is what is left over from disposable personal income after consumption.
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18. How well do these definitions seem to align with the “Pay Yourself First” principle?
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20. Saving vs. Investing Our curriculum asserts these commonly accepted differences between saving and investing: Savings Investing Used to pay for: Emergencies Large Purchases Used to pay for: Higher Education Retirement
21. Liquidity Assets: Everything an individual owns with monetary value. Liquidity: How quickly and easily an asset can be converted to cash. Examples of Assets Cash Clothing Houses Electronics Savings Accounts Furniture Automobiles Make a list of your assets.
22. Liquid Assets In most cases, investments are not as liquid as savings. Savings are known as liquid assets, because they are easily accessible in emergency situations. Of your assets, which are the most liquid?
23. Saving vs. Investing The Importance of Each… Savings Investing Enhances and helps build wealth. Provides the foundation for financial security.
24. Saving vs. Investing Click the image below to watch a video on YouTube that spells out the key differences between saving and investing.
25. Saving vs. Investing Other points mentioned in video: Investing Savings (generally) Long Term Higher Risk (generally) Short Term Lower risk
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27. Podcast from PBS Newshour:http://www.pbs.org/newshour/rss/media/2009/05/05/financefallacy.mp3
34. References Dollar Sign (used on title slide) http://www.flickr.com/photos/adriarichards/4369276799 Twenty Dollar Bill (used in background) http://www.flickr.com/photos/badwsky/3377160997 Family on Couch (gif) http://search.coolclips.com/media/?D=wb030670# Pay Yourself First (gif) Created by myself, Marie Opland Hand Holding Money (gif) http://www.gifs.net/gif/index.php3?n=image.php3&image_id=8218&image_name=Money_in_hand Student Raising Hand (gif) http://dir.coolclips.com/Education/School/Classroom/Students/Students_wb030423.html All other images are from Other images from Microsoft Clipart, available in PowerPoint Information on slide 12http://www.fefe.arizona.edu/