About 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Earning College Credit
Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.
To learn more, visit our Earning Credit Page
Transferring credit to the school of your choice
Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.
Other chapters within the MTTC Economics (007): Practice & Study Guide course
- Economic Concepts & Terminology
- Impact of Historical Events on the Economy
- Impact of Geography on Economics
- Structure of Local & Federal Governments
- Government & Economic Systems
- Democratic Values & Society
- Government Impact on Economics
- Basics of Measuring the Economy
- Scarcity, Opportunity Cost & Production Possibilities
- Producers & Production in Microeconomics
- Supply, Demand & Market Equilibrium
- Price Determination & Elasticity
- Economic Market Structures
- Business Types & Decision Making
- Understanding Economic Growth and Productivity
- Inflation & Adjustment in Economics
- Unemployment Basics
- Understanding Inflation & Unemployment
- Overview of Aggregate Demand & Supply
- Understanding Macroeconomic Equilibrium
- Scarce Economic Resource Markets Basics
- Fiscal & Monetary Policies
- Contractionary & Expansionary Gaps
- Money & the Market
- The Central Bank & Monetary Policy
- Types of Economic Advantage
- Foreign Exchange & Trade Balance
- Overview of Inflows, Outflows & Restrictions
- International Economic Development
- Consumer Decisions in Economics
- Consumer Protection Laws & Agencies
- Effective Teaching Strategies
- Instructional Teaching Strategies
- Assessment Strategies for Teachers
- Types of Student Assessments
- Technology Uses in the Classroom
- MTTC Economics Flashcards