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Ch 32: Savings & Investments for Personal Finance

About This Chapter

These video lessons explain savings and investment strategies including stocks and bonds, mutual funds and exchange traded funds. Credit ratings, interest rates and risk management strategies are also discussed in this chapter.

Savings & Investments for Personal Finance - Chapter Summary

Use these video lessons and quizzes to learn about saving and investing money for personal use. You'll see how to create a budget, plan for retirement and invest in the stock market. Our instructors will explain how to determine simple interest rate, figure compound interest and make decisions about investments.

Later lessons look at factors that influence credit worthiness, assessing risk management and advantages and disadvantages of variable and fixed-rate loans. By the end of this chapter, you'll be ready to:

  • Name the steps in creating a personal budget
  • Identify types of financial institutions and their roles
  • Explain savings and investment options, including savings accounts, mutual funds and bonds
  • Define risk and return and show ways to manage risk
  • List types of interest rates
  • Understand the formulas for simple and compound interest rates
  • Explain what determines a person's credit rating

Our instructors are all professionals in the field and know how to make these lessons entertaining, while still being informative. Each lesson includes a self-assessment quiz that allows you to check what you've learned. You can use the video tags to re-watch portions of the lesson that gave you trouble. Written transcripts are also included.

14 Lessons in Chapter 32: Savings & Investments for Personal Finance
Test your knowledge with a 30-question chapter practice test
How to Create a Personal Budget: Tools & Examples

1. How to Create a Personal Budget: Tools & Examples

Creating a personal budget doesn't have to be overwhelming or discouraging. There are four basic steps to create an effective budget. This lesson will walk you through the steps to create a solid budget.

Understanding Retirement and Pension Plans

2. Understanding Retirement and Pension Plans

Businesses use many different types of retirement plans for their employees. Two of the most common are pension plans and 401(k) plans. This lesson discusses these two kinds of retirement plans.

Types of Financial Institutions: Definition, Examples & Roles

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

In this lesson, we'll explore three types of financial institutions and their roles in financial intermediation. By the end of the lesson, you should also be able to provide an example or two of each type of institution, some of which you may have already used in real life.

What is a Savings Account? - Definition & Types

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

People use savings accounts to invest their money for short periods of time. They are the most simple, liquid types of short-term investments. Learn about some basic types of savings accounts and then test your knowledge with a quiz.

Investment Opportunities in Stocks and Bonds

5. Investment Opportunities in Stocks and Bonds

Investors often turn to the stock and bond markets when investing their money. Each market offers opportunities and risks for the individual investor. In this lesson, we'll explore the nature of these investments.

Investment Opportunities in Mutual Funds and Exchange-Traded Funds

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

Investing in the stock market is not limited to individual stocks. Investors can also invest in mutual funds and exchange-traded funds. In this lesson, you'll learn about these opportunities, as well as their advantages and disadvantages.

Risk and Return in Insurance & Risk Management Strategies

7. 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

8. Ways to Manage Risk: Insurable and Uninsurable Risk

Risks abound in life and in business. However, most risks can be managed. In this lesson, you'll learn about ways to manage risks. You'll also learn the difference between insurable and uninsurable risks. A short quiz follows.

Factors That Affect Credit Worthiness

9. Factors That Affect Credit Worthiness

Access to credit to pay for education, a house, a car or other items is an important part of managing personal finances. In this lesson, you'll learn what factors lenders consider when deciding whether to loan someone money and what interest rate they will charge.

What Is Financing? - Definition & Types

10. What Is Financing? - Definition & Types

People borrow money to purchase homes, cars, boats, or anything else they don't have the money for at the moment they want to make the purchase. In this lesson, learn what financing is, as well as different types of financing used every day.

What is Interest Rate? - Definition, Types & History

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

Everything costs money, even money. In this lesson, you'll learn about interest rates - specifically, what they are, how they are determined, and what they mean for an individual and an economy.

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

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

When we borrow a certain sum of money over a period of time, we agree that we will pay it back, along with a fee, known as the interest owed. Similarly, when we invest a sum of money in a savings account, the account earns us interest. This lesson will show you how to calculate a certain type of interest called simple interest.

What is Compound Interest? - Definition, Formula & Examples

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

In this lesson, find out what compound interest is and what makes it different from simple interest. Then learn the formula for calculating compound interest. Finally, compare both types of interest with a graph that shows the growth in interest.

Comparing Variable & Fixed Interest Rate Loans

14. Comparing Variable & Fixed Interest Rate Loans

Most people, at some point in their lives, will experience the process of getting a loan - perhaps for a house, car, education or something else. This lesson will describe the difference between the two types of interest rates commonly offered.

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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