11.++Savings+and+Investments

SAVINGS/INVESTMENTS
Students should consider how much money they will set aside per month for savings. Students should realize that they cannot possibly allow for every single expense before they happen. Unexpected expenses could come in the form of car repairs, medical care, or sudden travel. In order to prepare for these future costs (which are a certainty) one should put aside money in a savings account that can be easily accessed. A good amount to have put aside is $1000; and once that amount is achieved, increase savings to expenses needed for one-month and then three-months. Plan accordingly for these unexpected expenses so that borrowing or charging to cover costs will not be a necessity. (SOL.GOVT.15.f, 16.c, 17)

Requirements
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 * Identify the current interest rate on personal savings accounts at your bank and whether your employer has a company pension plan or contributes to an Individual Retirement Account for you.
 * Establish an emergency savings account (“Real World” Savings) and determine how much you would like to have in this account. (at least $1000 is required). Explain how long it will take you to get this amount at your current rate of savings.
 * Establish some form of an Individual Retirement Account (IRA) and specify how much you would like to contribute on a monthly basis. Information about retirement accounts can be found at some of the websites under “Additional Resources.”
 * If you continue to contribute to your IRA at the monthly rate you have established, how much will you have by the time you are 65? If interest rate cannot be determined then assume the money will grow at a 7% interest.
 * Use the following calculators to determine: [] or

Resources:
BB&T StellarOne Suntrust Wachovia Bank of America

Books on reserve in the LHS Library:
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