Personal Finance - Saving and Investing for the Future

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The more risk associated with an investment, the higher the rate of return is likely to be.

Money market accounts (at banks) that are not insured by the FDIC are still considered safe because the securities backing these funds are very stable.

Money deposited into savingsa ccounts grows due to compound interest.

A combination savings-investment plan in which an investment firm uses your money to purchase a variety of short-term securities is called a

Emergencies, vacations, social events, and major purchases are examples of long-term needs people save for.

Credit unions generally offer lower interest on savings and higher interest on loans.

The amount of money you have left over when the bills are paid is known as discretionary income.

When choosing a financial institution in which to deposit your savings, consider safety, liquidity, convenience, interest-earning potential (yield), and feeds/restrictions.