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Maximizing Savings: Strategies for Financing Your Education

Learn how to save for short- and long-term needs, including college financing options like scholarships, loans, grants, and work-study programs. Discover the keys to saving, how money grows through interest and compound interest, and where to save for maximum yield. Find out about regular savings accounts, certificates of deposit, money market accounts, and factors to consider when saving. Explore saving regularly through direct deposit and automatic payroll deductions.

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Maximizing Savings: Strategies for Financing Your Education

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  1. Chapter 10 Saving for the Future

  2. Why Save?? • Short-term needs:

  3. Why Save? • Long-term needs:

  4. Financing Your Education • How to pay for college? • Work - • Scholarships • Student loans – • Grants – • Work-study Programs –

  5. How much to save? • How much you can save is based on: • Discretionary income – • The __________ you attach to saving • Your anticipated ________________ • Your ___________

  6. Keys to Saving

  7. How your money grows • Principal – • Interest – • Compound Interest –

  8. How your money grows • The ______ _____interest in compounded, the ________ your earnings. • Yield – • Annual Percentage Yield -

  9. Where to save • ________________ – chains; usually “full service;” FDIC insured • __________________________ – specialize in savings accounts and real estate loans; FDIC insured • ______________– Not-for-profit, member owned institutions; “share accounts;” NCUA insured • _________________ – offer securities (stocks and bonds); Not FDIC insured

  10. Regular Savings Accounts • Liquidity – • Tradeoff? • You are free to make deposits and withdrawals without penalty.

  11. Certificate of Deposit • Certificate of Deposit (CD) – • Maturity date – • __________ must be paid if money is withdrawn _______ • Rates are ______ than a savings account b/c _____ __________

  12. Money Market Account • Money market account – • Offered by ______ and ________________ • ______ _______ but often limited to a certain number of withdrawals per month • Usually require large_______ ______ and high ___________ ___________

  13. Money Market Accounts MM Deposit Account MM Fund Offered by __________ ______ Type of mutual fund that invests in low-risk securities Risk of loss of principal ___ _____insured • Offered by ______ • Higher rate for higher deposits • Rate can ________ as account balance increases • ________ insured

  14. Factors to consider when saving - First Niagara - Wells Fargo

  15. Saving Regularly • It is important not just to save, but to save regularly. • Direct Deposit - • Automatic Payroll Deductions –

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