LAP: QS-030 Objectives Discuss the nature of financial needs and goals. Describe the benefits of saving and investing. Objective Discuss the nature of financial needs and goals.

Report
LAP: QS-030
Objectives
Discuss the
nature of
financial needs
and goals.
Describe the
benefits of
saving and
investing.
Objective
Discuss the nature of
financial needs and goals.
—the basics that are essential for survival
 Food
 Clothing
 Shelter
—things you’d like to purchase above
and beyond the basics
 Vacations
 Homes
 Education
 Retirement
Not legal tender
Not legal
tender
Not legal
Nottender
legal tender
tender
Not Not
legallegal
tender
 Increase in the cost of goods and services
 About 3.5 percent a year
Objective
Describe the benefits
of saving and investing.
 Taking a portion of your current income
and putting it away for future use
 Important for reaching short-term
financial goals
Only you
can decide
how much
to save.
Make sure you
still have
enough to
enjoy life now.
 Take it off the top.
 Plan with your family.
 Spend less.
Not the best way to make
Savings
money or
create wealth
accounts
earn a small
amount
of interest.
 Building wealth by using
money to make money
 Important for reaching
long-term financial
goals
Earning interest upon interest
Three key factors:
• The amount of money you invest
• How long your money is invested
• How much your investment grows each year
 Saving and investing work hand in hand.
 Compounding is your best friend because
time is on your side.
 Getting started early is the
key to successful investing.
Saving
Investing
Fast Forward to Age 67
Investment
Charlotte
Spencer
(begins investing
at age 17)
(begins investing
at age 22)
Difference
One-time
$500
$60,000
$36,000
$24,000!
$500
annually
$700,000
$430,000
$270,000!
MarkED
Acknowledgments
Original Developers
Lelia Ventling and Sarah Bartlett Borich,
MarkED
Version 1.0
Copyright  2007
MarkED Resource Center
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