Economics: Today and Tomorrow © 2012Chapter 6:
Saving and InvestingChapter OverviewsSection 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. Savings accounts and money market deposit accounts are two ways to save. Both pay interest on the funds saved in the account. Most banks and savings institutions are insured by the Federal Deposit Insurance Corporation (FDIC). Section 2: Investing: Taking Risks With Your Savings
Stocks and bonds usually carry greater risks than savings accounts. Therefore, stocks and bonds usually offer higher rates of interest than savings accounts. Stockholders are owners of a corporation, and bondholders are creditors of a corporation. Stocks and bonds are typically sold on centralized exchanges. Markets are heavily regulated to protect investors. 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.  | 
