Foundations of Investing and Saving
Designed specifically for our students, this module introduces the essentials of investing and saving, helping you build a secure financial future.
Introductory Video on Investing
Understanding Investments
Investing is the act of allocating resources, usually money, with the expectation of generating an income or profit. You can invest in stocks, bonds, mutual funds, or real estate, each carrying different levels of risk and potential return.
Why Invest?
Investing can significantly increase your wealth over time, allowing you to meet financial goals such as buying a home, saving for retirement, or funding education. It's essential to start early due to the power of compound interest—where your earnings generate their own earnings.
Basic Investment Strategies
For students, starting small and investing regularly over time can build up substantial savings. Diversifying your investments can also help manage risk and increase potential returns.
Saving for the Future
Saving involves putting money aside, bit by bit. You typically save for car funds, vacations, emergencies, or short-term goals. Savings are usually kept in bank accounts, where they earn interest over time.
Creating a Budget
Budgeting is crucial for managing your finances. It helps you track your spending, save money, and avoid unnecessary debt. A good budget ensures you can fund your investments while covering all other financial responsibilities.
Understanding Investments
Investing is the act of allocating resources, usually money, with the expectation of generating an income or profit.