COPYRIGHTED MATERIAL
C H A P T E R 8
SUPER-SIZE YOUR SAVINGS
Chapter Resources: Calculator.net is an excellent website with many easy to use calculators for mortgage payments, student loan payments, college tuition, time deposits (CDs), car loan payments, savings, income tax, investment goals, etc. There are also financial calculator mobile apps. Using the appropriate financial calculator makes financial planning and goal setting easier and more accurate. Inequality.org is the go-to website for research, data, and articles about wealth and income inequality in the U.S. and around the world. Learning Goals By the end of this chapter you will be able to: • Explain theories behind decline in the rate of savings in America • List key factors determining how much a person should have in emergency savings • Compare simple interest and compound interest • Tell how compounding works to grow savings and investments • Use a compounding calculator • Make a plan for developing a lifelong savings habit • (Opt.) Debate key issues of income and wealth inequality in America • (Opt.) Use an online program such as Thinglink or Glogster to design, create and share an interactive poster or photo collage presenting key issues and data about wealth and income inequality in America
PRODUCT PREVIEW
L ife is unpredictable. Without any warning, you can suddenly be faced with an emergency that requires a large dose of cash to fix. Some expenses can be kicked down the road, but many can’t — like fixing that horrible toothache that isn’t 100% covered by your dental insurance before your head explodes. Or repairing your car before you miss another day of work because you have no wheels. What would happen if you suddenly lost your job and had no money coming in? Your landlord won’t care. You’ll still have to cough up that rent check. Everyone needs to have a stash of emergency cash to cover unexpected costs. In fact, a savings account is a first and very important step toward building wealth because it creates a financial safety net. Regarding savings, how much is enough? How much money should you have saved for a rainy day?
135
Made with FlippingBook - Online catalogs