Money Topics

Invest Well

When we invest well, we can grow and increase the value of
our money over time.

How Investments Grow in Value

  1. The investment’s value goes up.
  2. With a stock, you can also earn dividends, which are payments you receive from the company for owning the stock.
  3. A strong economy helps an investment grow.

How Investing Helps You Meet Your Financial Goals

  • Your money will grow faster.
  • You’re earning money while you’re saving money.

The Rule of 72

The Rule of 72 is a math equation that helps you figure out how long it will take to double your money with a certain interest rate. Divide 72 by the annual interest rate. The answer is the number of years it will take to double your money.

Interest Rate

An annual fee for borrowing money set by the lender, such as a bank.

Stocks, Bonds and Mutual Funds

  • A stock is an ownership in a company in terms of shares.
  • A bond is a certificate you receive for lending a business or government money. Over time,
    that business will pay you back with interest.
  • A mutual fund is a mix of different investment funds.

Diversify Your Portfolio

Put money in a number of different types of investments to earn the most money while reducing risk. This is called diversification.

Money Topics for Parents:

12 Key Financial Topics to Cover With Your Children and Teens.