Notes/Content

1. 2.4.3.G1
Savings Tools
5.02

2. 2.4.3.G1
© Take Charge Today –August 2013 – Savings Tools– Slide 2
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Types of Savings Tools

3. 2.4.3.G1
© Take Charge Today –August 2013 – Savings Tools– Slide 3
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Ideal for Storing Emergency Savings
Insured depository institutions offer accounts
which are:
How will a consumer know if their depository
institution offers secure accounts?

4. 2.4.3.G1
© Take Charge Today –August 2013 – Savings Tools– Slide 4
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Savings Tools Characteristics
Each savings tool has
different characteristics
Goal: Determine the
savings tool most
appropriate for reaching a
financial goal

5. 2.4.3.G1
© Take Charge Today –August 2013 – Savings Tools– Slide 5
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Checking Account
What are common ways to access funds
in a checking account?

6. 2.4.3.G1
© Take Charge Today –August 2013 – Savings Tools– Slide 6
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Checking Account Features

7. 2.4.3.G1
© Take Charge Today –August 2013 – Savings Tools– Slide 7
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Savings Account
What are common ways to access funds
in a savings account?

8. 2.4.3.G1
© Take Charge Today –August 2013 – Savings Tools– Slide 8
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Savings Account Features

9. 2.4.3.G1
© Take Charge Today –August 2013 – Savings Tools– Slide 9
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Money Market Account
Which would typically earn a higher interest rate? An
account with a $10,000 balance or a $2,500 balance?

10. 2.4.3.G1
© Take Charge Today –August 2013 – Savings Tools– Slide 10
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Money Market Account Features

11. 2.4.3.G1
© Take Charge Today –August 2013 – Savings Tools– Slide 11
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Certificate of Deposit (CD)
Why would a depository institution typically offer higher interest
rates for CD’s with a longer time period or more money invested?

12. 2.4.3.G1
© Take Charge Today –August 2013 – Savings Tools– Slide 12
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Certificate of Deposit Features

13. 2.4.3.G1
© Take Charge Today –August 2013 – Savings Tools– Slide 13
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Matching Savings Tools to Goals
Consider these factors when determining the most
appropriate savings tool for your financial goal

14. 2.4.3.G1
© Take Charge Today –August 2013 – Savings Tools– Slide 14
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
You Decide: Which Tool is Best?

15. 2.4.3.G1
© Take Charge Today –August 2013 – Savings Tools– Slide 15
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Analyze the features of a savings
tool among depository institutions
Terms and conditions such as interest rates, fees,
and minimum balance requirements may vary.

16. 2.4.3.G1
© Take Charge Today –August 2013 – Savings Tools– Slide 16
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Liquidity
Higher interest rates are a trade-off for lower liquidity
Most
Liquid/Lowest
Interest
Least
Liquid/
Highest
Interest
Checking
Account
Savings
Account
Money
Market
Deposit
Account
Certificate
of Deposit

17. 2.4.3.G1
© Take Charge Today –August 2013 – Savings Tools– Slide 17
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Understand the features of savings
tools to select the most appropriate
tool for each financial goal
Summary