Economics: Today and Tomorrow © 2008

Chapter 6: Saving and Investing

Chapter Overviews

Section 1: Why Save?
When you save your income, the economy, as a whole, benefits. Saving provides money for others to invest or spend. Saving also allows businesses to expand, which provides increased income for consumers and raises the standard of living. The many types of savings plans and investment opportunities—as well as the advantages and disadvantages of each—are the focus.

Section 2: Investing: Taking Risks With Your Savings
Many risks are involved with the stock and bond markets, mutual funds, and the regulation of securities. All of these are monitored and regulated by the national government. In order to avoid another stock market crash, the government has implemented the Securities Exchange Act, which requires any institution issuing stocks or bonds to file a registration statement with the federal government.

Section 3: Special Savings Plans and Goals
Four types of retirement plans are reviewed: pension plans, Keogh plans, individual retirement accounts (IRA), and real estate. Each individual's income, risk tolerance, and values factor into how much a person should save.