Thats Life!

A Penny Saved is a Penny Earned

1. Complete the following chart regarding different types of savings options and insert it onto your website under a separate tab for Savings. Description A bank account where someone can save money and earn interest over time. a certificate issued by a bank to a person depositing money for a specified length of time. the trade in shortterm loans between banks and other financial institutions. Advantages - Saving - Automatic deposit and payment -very safe -offer fixed or variable interest rates. -earn steady interest. -easy access -low risk -higher interest rates Disadvantages Low interest rate Minimum balance No debit card - cannot take out money until set time. -taxable (lose interest).

Savings Account

Certificate of Deposit

Money Market

Traditional IRA

is a tax-deferred retirement savings account. You pay taxes on your money only when you make withdrawals in retirement. an individual retirement account allowing a person to set aside after-tax income up to a specified amount

Roth IRA

-high balance requirement -limited amount of withdraws and transfers. -interest rate fluctuation and other fees. -tax deduction -have to pay taxes on withdraws -forced to withdraw at age 70. -prevents you from keeping money in traditional IRA for children to inherit. -withdrawals are - Roth IRA free if open for 5 contributions are years. not tax deductible. -age based - Contributions do distributions are not not reduce your required. adjusted gross

each year. Both earnings on the account and withdrawals after age 59 are taxfree.

- can make contributions to roth if have earned income after 70. - Spouses or beneficiaries of the deceased Roth IRA owners can combine the inherited funds with their own Roth IRA accounts without a penalty.

income, which may make you eligible for other tax breaks. - Since some individuals may never live to see retirement age, they might not experience and enjoy the tax benefits of a Roth IRA. - cannot contribute to a Roth if your income is above certain limits. - Congress may decide to change the tax-free withdrawal allowance for Roth

2. Prepare a visual aid (i.e. Powerpoint, Prezi, table, etc.) that displays information from three different banks comparing services offered and fees charged for those services. Then, rate the financial institutions based on the data you have collected. The following information must be included in your final product and you must upload this assignment to your Economics Portfolio under the Savings tab. Name of financial institution One checking account product from that institution o Include minimum balance required, fees charged and interest earned. One savings product from that institution o Include minimum balance required, fees charged and interest earned. Rating of each institution (scale of 1-3, with 1 being the best) and why

3. Finally, prepare a savings plan for yourself. You need to include how you save in the present, how you plan to save in 5 years and how you hope to save in 10 years.

This should include such details as short and long term savings as well as retirement. This should also be uploaded to your website under savings.