By Katherine R. Bateman
An adolescent who saves $2,000 every year among the a while of nine and 14, at an rate of interest of nine percentage, could have a million money at age sixty five. and that's simply by saving! This advisor explains the language of industrial and the ability of making an investment, in order that teenagers can develop up business-literate and get an early commence at making their cash develop. The innovations of cash and easy and compound curiosity convey how saving works; then teenagers research the place Wall highway is, what shares and bonds do, and, with the aid of an grownup, find out how to purchase or promote a inventory, mutual fund, or rate reductions bond. Dozens of actions train how one can stability a checkbook, learn inventory tables, and recognize what everyone is conversing approximately once they point out inflation, recession, and the Federal Reserve Board.
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Extra info for The Young Investor: Projects and Activities for Making Your Money Grow
Call or stop by each one to find out what interest rates they offer on their savings accounts. ” Ask if the interest rate is simple or compound. Copy the table below to record the information you gather. Name of Bank or Savings and Loan Phone Number Account Type: Savings (S) Money Market (MM) Simple (S) or Compound (C) Interest Date of First Call Interest Rate at First Call Date of Second Call Interest Rate at Second Call One month later, contact these places again and ask the interest rate. Fill in the date and the new interest rate.
Savings and loan companies, usually just called savings and loans, are another great place to save your money. Savings and loans work just like banks with one big exception. They don’t have to follow the same strict rules that all banks in the United States are required to follow. The difference between banks and savings and loans is a lot like the difference between public and private schools. You have rules in your public school. They are the same rules that you and your biggest football rival and all the other public schools in your state must follow.
That’s in case some of the shareholders don’t agree with the way the company is being run. There can be big arguments at shareholders’ meetings, where people yell and scream at the people who manage the company. But the shareholders with the most shares get the most votes, so if the company that sold the stock in the first place owns the most shares, it can do what it feels is in its best interests. A company may decide to sell different kinds of stock shares to the public. They can sell common or preferred shares.