Key Terms

Using the goals within your crystal ball, consider what the fnancial needs will be in order to meet these goals.

Which of the goals above will require you to SPEND money?

Which of the goals above might you need to start SAVING money for? Provide an estimate of how much money you might need to save for each.

Setting aside money you do not spend now for emergencies or for a future purchase.

KEY TERM: Savings

Savings refers to the money you have left over from your income after spending needs or expenses have been met. This money is kept in the form of cash or bank deposits.

Savings are exposed to no risk, but also come with minimal returns.

KEY TERM: Sustainability

In order to increase the amount of money you have saved for your fnancial goals, you may choose to grow your savings through investing. Using the space below, write down everything you know about INVESTING.

KEY TERM: Investing

Buying assets such as stocks, bonds, mutual funds or real estate with the expectation that your investment will grow in value. Investments are usually used to achieve long-term goals.