Which type of savings would be the best choice for the ...



Names_______________________________________________________________________________

1) List 2 factors to consider when deciding how to save your money?

___________________________ __________________________

Look at your career budget- How much did you save each month? $____________ after 1 year it could be $_____________________

Which type of savings would be the best choice for the following situations?

SAVINGS ACCOUNT CD SAVINGS BOND MONEY MARKET

Shop for rates @ st Louis area or use your local bank website for current rates.

|Scenario |Type of account? |Reasoning: give 2 for each |Payoff? |

| | | | |

|1) A useful baby gift for your new niece or| | | |

|nephew: | | |Rate: term: |

| | | | |

| | | |Compounded _____________________ |

| | | | |

| | | |Total $___________ |

|2) Saving for textbooks and Greek life | | | |

|expenses next fall. You have $2500 from | | |Rate: term: |

|your part time job. | | | |

| | | |Compounded _____________________ |

| | | | |

| | | |Total $___________ |

|3) Insurance paid you $5000 after the last | | | |

|hail storm damaged your car. Your car is | | |Rate: term: |

|still drivable. Hopefully you won’t have | | | |

|to replace it for a couple of years. | | |Compounded _____________________ |

| | | | |

| | | |Total $___________ |

|4) You have accumulated a large amount of | | | |

|cash $10,000 in your savings account but | | |Rate: term: |

|would like to hold onto it for a home | | | |

|purchase- within the next 8-10 years. | | |Compounded _____________________ |

| | | | |

| | | |Total $___________ |

|5) Your generous relatives and friends gave| | | |

|you $1000 for graduation. You would like | | |Rate: term: |

|to grow that money instead of spending it | | | |

|on frivolous things… | | |Compounded _____________________ |

| | | | |

| | | |Total $___________ |

|6) You have $4500 that you are planning to | | | |

|spend on a good used car—you just haven’t | | |Rate: term: |

|found one yet… | | | |

| | | |Compounded _____________________ |

| | | | |

| | | |Total $___________ |

Record your choices on to google link

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