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Ch 26: Personal Finance: Savings & Investments

About This Chapter

Review these short video and text lessons to find out more information about saving your money and making wise investments. Discover different opportunities for investments, and evaluate which interest rates work best for your financial goals.

Personal Finance: Savings & Investments - Chapter Summary

The video and text lessons in this chapter discuss the institutions that offer savings accounts as well as the firms that monitor investments for clients. Learn about the benefits and disadvantages of using different types of financial institutions or agencies. Identify the differences between stocks, savings accounts, exchange-traded funds, bonds, and mutual funds.

Our instructors have outlined certain facts that all investors should know, such as the potential for loss with investments and guidelines for risk management. The lessons in this chapter also provide guidance with understanding how financial institutions determine credit worthiness. Better credit usually means better interest rates, and these lessons examine the various types of interest rates investors commonly encounter. Upon completing this chapter, you should know more about the following:

  • Fixed and variable interest rates
  • Financing options
  • Risk management
  • Risk and return
  • Investment opportunities
  • Savings accounts

Study.com offers brief and entertaining video lessons along with text lessons that help you focus on the topics you need to learn. There are video tags attached to each lesson, so you can go from one main topic to another with ease. Full transcripts with bolded keywords help you identify important information. In addition, our instructors are always available to provide you with more guidance, so feel free to contact them. Lastly, you can evaluate how much you've learned by taking lesson quizzes and chapter exams.

12 Lessons in Chapter 26: Personal Finance: Savings & Investments
Test your knowledge with a 30-question chapter practice test
Types of Financial Institutions: Definition, Examples & Roles

1. Types of Financial Institutions: Definition, Examples & Roles

Financial institutions oversee monetary transactions such as loans, deposits, and investments. Explore the definition, examples, and roles of financial institution and discover the different types called depository, non-depository, and investment institutions.

What is a Savings Account? - Definition & Types

2. What is a Savings Account? - Definition & Types

A savings account is a bank account for saving money, that can also earn interest at the same time, increasing one's profits. Learn more about savings accounts, how they started, the different types and their definitions, and the reason people choose to invest in such an account.

Investment Opportunities in Stocks and Bonds

3. Investment Opportunities in Stocks and Bonds

A diversified investment portfolio typically contains stocks and bonds, which are financial instruments known as securities. Explore the types of stocks and bonds, how they are purchased and sold, and learn about the risk and possible return on investment opportunities.

Investment Opportunities in Mutual Funds and Exchange-Traded Funds

4. Investment Opportunities in Mutual Funds and Exchange-Traded Funds

Two types of investment opportunities are mutual funds and exchange-traded funds (ETFs). Learn from an overview of both types of opportunity and consider the advantages and disadvantages of each.

Risk and Return in Insurance & Risk Management Strategies

5. Risk and Return in Insurance & Risk Management Strategies

In this lesson, we'll define risk and return as it relates to the insurance industry, and you'll understand the correlation between the two. We'll also explore three risk management strategies and give examples of each.

Ways to Manage Risk: Insurable and Uninsurable Risk

6. Ways to Manage Risk: Insurable and Uninsurable Risk

In business, risk management is the organizational process of identifying, assessing, and mitigating potential hazards to the personal safety of employees, vendors, and customers. Learn the differences between insurable and uninsurable risk, how to identify both types of risk, and ways to assess and manage risk in the workplace.

Factors That Affect Credit Worthiness

7. Factors That Affect Credit Worthiness

Banks use a person's creditworthiness to determine their eligibility and the amount of interest they will pay for credit cards, loans, and other forms of lending. Explore the factors of creditworthiness and take a closer look at capacity, character, conditions, and collateral and capital.

Comparing Variable & Fixed Interest Rate Loans

8. Comparing Variable & Fixed Interest Rate Loans

An easy way to think of interest is additional money that is charged when a borrower receives a loan. Examine the potential advantages and disadvantages of fixed interest rates and variable interest rates.

What Is Financing? - Definition & Types

9. What Is Financing? - Definition & Types

When a person is need of financial assistance, they may go to a financial institution and request financing, which is when a financial institution sets up a program to help a lender make a purchase with the promise to repay in an affordable manner. Explore the idea of financing, looking at the different types of financing that are available to consumers.

What is Interest Rate? - Definition, Types & History

10. What is Interest Rate? - Definition, Types & History

The interest rate is the cost presented as a percentage that is required to be paid to the lender on money loaned to a person or business. Explore the definition and history of interest rates, the types of rates, and the components of market interest rates.

How to Find Simple Interest Rate: Definition, Formula & Examples

11. How to Find Simple Interest Rate: Definition, Formula & Examples

Simple interest rate is the ratio expressing the accruable interest on a loan regardless of other financial actors. Learn the formula and how it is applied to several examples of loans with various interest rates.

What is Compound Interest? - Definition, Formula & Examples

12. What is Compound Interest? - Definition, Formula & Examples

When a bank offers compound interest, it figures the interest for each period based on the account's previous balance plus the interest gained in the last period. Review simple interest, compare it to compound interest, and study compound interest's definition, formula, and examples.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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More Exams
There are even more practice exams available in Personal Finance: Savings & Investments.

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