Stocks and bonds, money market and mutual funds, IRAs and Roth IRAs, CDs and annuities, and good old-fashioned passbook accounts—this program helps students make sense of the many ways to save and invest money.
With input from financial experts about the risks and rewards of each, the video defines terms viewers may have heard but not understood, such as compound interest, capital gains and losses, the NASDAQ and the Dow, market risk, inflation, and dividends. Smart, clear graphics help explain how the stock market works, the four types of bonds, saving for retirement, and the value of diversifying. Highlights include opening a brokerage account, the best time to buy and sell stocks, and investing in a college degree.
1. Understanding Compound Interest Money can earn money because of compound interest. This concept is explained and illustrated. Interest might be compounded daily, monthly, or annually.
2. Types of Savings Accounts Types of savings accounts include passbook savings, Certificate of Deposit, and money market. Each has advantages and disadvantages.
3. Investment Risk Investment risks include loss of principal, market risk, and inflation. The value of money can shrink over time.
4. Investment Return Return is the money gained on an investment--its overall production. Investing in the stock and bond market could pay dividends or coupon payments. Yield is the income generated by an asset.
5. Understanding the Bond Market Investing in the bond market comes with risks. Bonds are essentially IOUs from governments or big companies that need to borrow money. Bond types include government, state and local, corporate, and mortgage-backed.
6. Understanding the Stock Market Stocks represent part ownership of a company. Stocks are a time-tested way to increase money. Investors should stay in for the long haul and diversify holdings. Increasing investment value can come from dividends and selling the stock.
7. Retirement Accounts & Investment Options Savings options come in many different forms, including money market funds, bonds, 401Ks, and more. A number of diversification options are explained. Young people should save for retirement or enroll in an employer retirement fund.
8. Investing in Yourself Higher learning can lead to high earning potential and overall greater job satisfaction.
Personal Finance Essentials: Saving and Investing (DVD)
Time: 34 Minutes