Personal Finance: It pays to save

how long you'll be keeping your money in the account; how often you'll want to withdraw money; how much money you'll keep in the account.

Before you select an account, think about:

Be a better steward of God's resources. Save money towards goals. Have money for emergencies. Learn to better manage money.

Depositing money into a savings account first helps you accomplish the following:

price-to-earnings ratio (P/E) 52-week high 52-week low dividend

Financial experts recommend looking at these four numbers before you invest

A = P(1 + r)n In this formula: A is the amount of money accumulated. P is the principal. r is the interest rate (1.6%, 5%...). n is the number of years the amount is in the account.

How do you calculate how much interest you will make?

She should have paid off credit card balances, saved up an emergency fund, and learned the basics about investing.

Miranda thinks she's ready to invest in the stock market. What should she have done to prepare?

TIPS

Securities TIPS; a savings product that pays interest twice per year and provides protection against inflation

financial advisement; fund manager; full-service stock broker or brokerage firm.

Services that can help you with saving and investing include:

stocks; mutual funds; retirement investments; real estate.

Some common types of investments are:

savings bonds; CDs; money market accounts; 529 plans; IDA; club accounts; treasury securities.

Some of the special savings accounts and savings products include:

treasury bills

T-bills; a savings product sold by the US Treasury department at a discount from their face value and range in terms from a few days to six months

treasury notes

T-notes; a savings product that pays interest every six months and is issued in terms of two, three, five, and ten years

basic savings accounts high-yield savings accounts money market accounts online savings accounts credit union savings accounts

There are many savings options, and they all fall into five main categories:

Spend wisely. If you receive cash as a gift, save at least part of it. Pay your bills on time to avoid late fees and finance charges. Use direct deposit or set up your account to automatically transfer money directly into savings. Save any extra money, such as a raise or bonus, from your employer. When you get a tax refund, save it. Save the change you have in your pocket at the end of the day and deposit it regularly into a bank account. If your employer offers a retirement plan, join it. If you pay off a loan, continue to make the monthly payments to yourself. Avoid debt.

Tips for Saving:

A company or individual makes shares available for sale. An individual puts in an order to buy stock with a broker. The trade is executed on the exchange floor or electronically. The individual waits and watches the stock. The individual puts in an order to sell stock. The sale is executed either electronically or on the exchange floor. Money is sent to seller.

To summarize, the steps in buying and selling stock include the following:

risk rate of return liquidity opportunity cost

You must weigh all the following factors before you put your money into any investment:

mutual funds

a collection of money from a group of investors that is used to buy different investments, like stocks, bonds, and real estate, managed by professionals

Rule of 72

a formula that helps you calculate how long it will take for your savings to double in value

rate of return

a percentage that shows how much gain or loss an investment makes

IRA

a retirement account that lets you save and invest money tax-free until you withdraw it when you retire

403b

a retirement plan available to employees of nonprofit organizations, such as schools and hospitals

401k

a retirement plan that some private corporations offer their employees

529 plan

a saving plan for education designed to help set aside funds to pay for future college costs

savings bond

a savings product or certificate issued by the U.S. government with values ranging from $50 to $10,000

term

a set period of time

club Account

an account used to save money for a special reason, such as a holiday, a vacation, or college

Department of treasury

an executive department of the United States government whose purpose is to manage the government's money

IDA

an individual development account or a matched savings accounts into which an organization, such as a foundation, corporation, or government, agrees to add money which matches the money you deposit

(APY); the amount of interest you will earn in one year from a savings account

annual percentage yield

CD

certificate of deposit; an account where you leave your money for a set period of time and are unable to make deposits or withdrawals during this time unless you pay penalties

Years to double = 72 ÷ interest rate

formula that can help you calculate the return on savings

compound interest

interest the bank gives on the interest that has been already earned

the minimum balances before the bank begins paying interest

interest thresholds

a savings account that offers a higher rate of interest when you make large deposits

money market account

principal

the original amount of money invested or deposited into a savings account

fund manager

the professional who decides where to invest money in a mutual fund

return

the profit or gain from saving or investing money

investing

using money in order to try to make more money

different interest rates paid for different size balances, with higher balances earning higher rates

variable interest rates

Gather the required information. Choose a director for the account. Go to the bank to sign the necessary bank forms. Fill out a deposit slip and deposit at least the minimum amount of money.

After you've compared your options for a savings account and selected the best account for you, follow these steps: