STOCK REVIEW

KEY TERM: Inflation

A general increase in prices and fall in the purchasing value of money. Example: 1920’s milk = 35 cents per gallon vs 2020’s milk = about $4.

Brainstorm 3 places you can keep money…instead of under your mattress.

Why do people have bank accounts?

NEW INVESTMENT KEY TERMS

Checking Account:

A deposit account held at a financial institution that allows withdrawals and deposits. With a checking account, you can deposit your paycheck or take out money for short-term spending.

Savings Account:

An account offered by banks and credit unions that is used for money you plan to save long-term. The money in a savings account is insured by the Federal Deposit Insurance Corporation (FDIC) and savings accounts typically offer a small amount of interest.

While savings accounts generally offer a small amount of interest, another option for earning interest on your money is to purchase a bond. Bonds may offer a higher return and tend to be a safe form of investment for money you are saving long-term.

Bond:

A low-risk debt investment, similar to an I.O.U., that is issued by companies, governments or states to fund projects. When you purchase a bond, you are lending money to the borrower or “issuer.” In exchange, the issuer pays you a certain amount of interest periodically. When the bond matures (or becomes time to pay), the borrower will pay back the initial investment or the “principal” value of the bond, plus interest.