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 Copyright: All photographic digital images on this CD are owned by the aforementioned photographic resources or their licensors and are protected by the United States copyright laws, international treaty provisions, and applicable laws. No title to or intellectual property rights to the images on this CD are transferred to you. These sources retain all rights and are not to be used, digitally copied, transferred, or manipulated in any way. To do so is a violation of federal copyright laws.