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.

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.

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.

To protect consumers, the federal and state governments regulate the credit industry. Some states have set a maximum on the interest rates charged for certain types of credit. The federal government has also passed laws designed to increase the flow of credit information to consumers.

In this section, you’ll learn about these laws and how they protect consumers from unfair credit practices.

The Many Uses of Economic Tools

Economics was first developed to study the production and distribution of goods and services. he boundaries of the field are much broader now. For example, economists have expanded their sights from the wealth of nations to the health of nations, with goals to get more out of our limited health care resources.

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