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WHAT

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‘LONG T

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WHAT

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SAVING FOR SHORT TERM GOALS

• Best done with a savings account

• Short term goals include…

SAVING FOR LONG TERM GOALS

• Best done with some form of investment

• Long term goals include…

THE DIFFERENCE BETWEEN SAVING & INVESTING

Investing involves RISK.

You may make more money than in a savings account, but

you can lose it too.

TYPES OF INVESTMENT:

• Stocks

• Bonds

• Real Estate

It’s important to research your investments before

you buy.

STOCKS

• Purchasing stocks means you’re purchasing a portion, or share, of the company

• Owning a share means you have part ownership of the company

• Share prices depend on a variety of factors including past performance and reputation, government policies and world events

STOCKS CONT’D

• Individuals try to buy stock they believe will go up over time

• If the price goes up = opportunity to sell and gain money

• If price goes down = investors lose money

SOME COMPANIES PAY A DIVIDEND

(A PORTION OF THEIR PROFIT)

TO INVESTORS ON A REGULAR BASIS.

Dividend – Part of a companies profits paid to share holders

Stock Symbol – An abbreviation of the company name

Last – the most current share price of the stock

CHG – change in share price from the day before

WHAT IS NASDAQ & THE DOW JONES?

NASDAQ – World’s largest electronic stock market trading shares from a number of different industries

Dow Jones – industrial publisher that tracks the stock performance of the top 30 U.S. companies

If NASDAQ/Dow Jones is UP = stock prices generally are up

If NASDAQ/Dow Jones is DOWN = stock price generally are down

WHAT IF YOU DON’T HAVE TIME TO WATCH STOCKS?

You can use MUTUAL FUNDS!!!

• Mutual funds allow you to become an investor in a number of different companies

• You become a part of a group of people who pool their money together and pay a professional investment manager to buy stocks

• You spread the risk – you might lose in one company, but gain in another

• NOT ALL MUTUAL FUNDS MAKE GAINS!!!