One of the many reasons that people save is to send their children to college. Another is to make a down payment on a home. Yet another is for those years after people stop working. There are different methods of saving for retirement, each having different risks. As you read this section, you’ll learn about special savings plans and the amount of risk involved in these investments.

People keep their savings in banks and savings and loan associations because they want a safe rate of interest. If people are willing to take a chance on earning a higher rate of return, however, they can invest their savings in other ways.

Stocks and bonds offer investors greater returns, but, at least for stocks, with more risk. As you read this section, you’ll learn hat stocks and bonds are, and why they carry a risk.

If you have a part-time job, you may already be saving some of your income for a future use, such as buying the latest gaming system or continuing your education. Don’t be discouraged if you can save only a small amount, as saving something is better than saving nothing.

IAs you read this section, you’ll learn why saving is important to you and the economy as a whole.

As with every decision in life, when you decide to buy a car, you are going to make a trade-off that involves an opportunity cost. You will have to decide what type of vehicle to buy, whether to buy new or used, and whether gas efficiency or engine size is more important to you, for example. In this section, you will learn about some of the important things to consider when shopping for a car.

Deciding whether or not to buy a house is one of the most important financial decisions most people will make. Some people will save for years in order to buy a small house. Others take out huge mortgages to purchase large homes. Still others are content to rent a house, condo, or apartment most of their lives. In this section, you’ll learn about the advantages and disadvantages of both renting and buying.

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